One of my new projects i am slowly trying to realize is investing in different currencies.


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10% of the total investment in other currencies and non-European providers?
I will review and develop this option over time. I can not make a final decision because I still lack a lot of information that I will start collecting now.

Ratesetter/australia ?
Swiss ?
USA ?
China ?
GB ?
Japan ?
others ?

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As you can see, I have not changed the "Portfolio weighting details" and adapted them to new investments.
I'll catch up on that when the core portfolio stands

Extension No. 4. Diversification options within a P2P platform

1. Invest in different types of loans
   
2. Investment in loans with different maturities
   
3. Invest in loans from different regions
   
   
4. Investing in loans across different currencies
   
5. Investing in loans with different returns
   
6. Investing in loans with and without a surrender guarantee
   
7. Investment in loans from various lenders

These diversification options will vary from p2p platform to p2p platform, depending on the business model.
Some platforms have less and others more diversification possibilities, which also explains why I differentiate between the whole portfolio and what you have in a platform for possibilities.

Ultimately, you can achieve optimal diversification and higher stability and security if you use all the different methods and do not just pick one or the other.

When and how I implement the weighting I will set, as with the exact rebalancing method, throughout the year.

Extension No. 3. Portfolio weighting details


To make it a little easier for the portfolio weighting in terms of market capitalization, I will very roughly round up and down.
Even though my weighting is now quite different from the actual market capitalization, I think that this weighting makes sense.

April 2018

Consumer Credit - 70%:

• Mintos - Latvia, € 612 064 793 M rounded to 612 M => 45% =>............ 35%
  
• Twino - Latvia, € 500 M rounded to 500 M => 37% =>........................... 25%
  
• Bondora - Estonia, € 122,4 M rounded to 122 M => 9% =>.................... 20%
  
• Viainvest - Latvia, € 97 047 000 M rounded to 97 M => 7% =>.............. 10%
  
• Swaper - Latvia, € 30 M rounded to 30 M => 2% =>.............................. 10%

Real Estate Loans / Corporate Finance - 30%:

• Estateguru - Estonia, € 51 774 833 M rounded to 51 M => 100% =>..... 100%

It looks like my investments are currently in estonia and latvia.
Most platforms, especially with regard to real estate and corporate loans, unfortunately have no auto investment function and are thus initially uninteresting.
(I would like to invest passively and not actively in the p2p area)

The search continues and maybe some platforms will be added, otherwise the portfolio will look like described above.

Since I have not yet decided definitively, which suppliers come into my portfolio, I can currently make no calculations for the weighting in percent.

Extension No. 2. Rebalancing methods


Portfolio Rebalancing: why it makes sence

1. by calendar rebalancing
   
2. by investment limit rebalancing
   
3. by cash flow rebalancing

I will use a cash flow rebalancing. Whether I design the cash flow rebalancing using the calendar method or the investment limit method, I will decide during the course of the year.

(Read the article: Portfolio Rebalancing: why it makes sence)

Extension No. 1. Weighting methods

1. by market capitalization,
   also called stock market value or stock market capitalization; related to a single company.
   
2. by gross domestic product (GDP),
   based on countries and regions
   
3. by equal weighting,
   every country / region gets the same weight

Since P2P is a riskier investment for me compared to a diversified ETF portfolio, I would like to take advantage of the opportunities and prefer the 'better performers' by using the market capitalization method for this portfolio

I have removed ''Loans'' from the list, because I think that less people are interested in it, and it saves me some work.