Portfolio Manager and dashboard get a facelift

In October we launched our new dashboard and Portfolio Manager. Since then we have polished the interface according to your feedback and we are happy to reveal two improvements.

Upgraded design of the Portfolio Manager

dashboard_PMWe have replaced the slider with three separate sections of the risk-return choices. The design is much more convenient now – moving from left to right you can change your risk-return level and see your expected return change accordingly on the graph.

Power of automatic diversification – estimated bid size is added to the dashboard

dashboard_estimated bid size

Regarding the new Portfolio Manager these are the frequently asked questions from our support team:

What is my current bid size and how is it determined?

Our technology adjusts the size of each investment amount based on the number of unique borrowers in your portfolio. The system carefully increases the investment size as your active portfolio grows while making sure the risks do not increase. The investment size can also be adjusted downwards if the size of your portfolio starts decreasing.

The minimum bid size is 5 euro and maximum 80 euro. The bid size is doubled after each time your portfolio increases by 200 loans. 200 is an important number because analysis of the investors’ portfolios shows that the risks of a portfolio substantially decrease after reaching 200 unique loans. This means that your portfolio return becomes stable and on 95% of cases is above 10% of return. Therefore increasing the size of the investments after each 200 new loans allows you to lend your money faster without increasing risks.

Why is my Portfolio Manager not investing even though I have available funds?

There can be two reasons for that:

  • If your available balance is less than your current bid size, the Portfolio Manager waits until your available balance reaches your bid size.
  • Check if your Portfolio Manager is activated properly to make sure it has started investing.

To sum up, the estimated bid size has been a requested feature for the new Portfolio Manager and it is going live with our release this week. We hope this makes your experience with Bondora even better.

Comments are closed.

13 thoughts on “Portfolio Manager and dashboard get a facelift”

  1. I have raised concerns around the new portfolio manager where I have responsibly spread my risks think accumulating higher volumes of loans but with lower capital. This stratagy has provided an average return whilst minimising risks. By being forced into the new Portfolio Manager I no longer have any control over the bid values for new loans. Because I have a significant volume of loans my bid value has been preordained to €40. On current projections I could have perfectly usable money on balance that can sit there for a week waiting to accrue to the magic €40 before I get to invest in 1 loan. Money on balance is earning me nothing. If the Bid value is preordained surely this should be working off the balances on account not the amount of loans an investor has.

    My risk profile per loan has now increase 4-8 folder and I have money sitting on account for too long! Personally I am not massively impressed with the new portfolio manager.

    Please give investors some control back!

    1. Hi Mike,
      Thank you for your feedback. By next year we will have enough data to assess if the bid size logic needs improvement. I will forward your suggestion to our engineering team.

    2. If you are not sure if the bid size logic is correct or not why do you implement it then?
      It would have made more sense to limit the upper side only and allow a smaler bid size.

  2. My first comment got deleted.. so going to post the same think in little bit different angel.

    Investors can’r realy divercify risk, or choose loans and there is a reserch work on Bondora raiting at raha f o o r u m

    There is proved, that bondora has mistaken calculating the RISK and RETURN.

    In last week news letter there was small quota, that bondora has changed the way bondora rating is calculated. What has changed?

    1. Hi Mart,
      The automated Portfolio Manager helps you invest in more loans and thereby also reduces the risks according to the pre-set strategy. It takes into account your portfolio size and adjusts the size of each investment that provides an optimal diversification level.

      Currently there are no plans to close the Primary Market so you can still choose loans manually and invest. Also, if the above options don’t meet your needs you can use the API where you can use your own customized investments strategy.

      The Rahafoorum analysis about Bondora Rating is one sided and inaccurate – it has not taken into account our comments which we provided prior to publishing the post. We will address this topic soon with correct figures and analysis.

    2. Thank you for your answer. Im waiting your correct figures, as I didnt see any mistakes in Taavis analysis. I hope you can disprove them in before this year ends

      I also want to let you know that there is a first working API, http://www.beeplus.ee, And to brighten up active investors, you realy should think about making interview about it. As it is also suitable for passive investors.. who have problems either invested amount or to little option to invest.

    3. What you mean “Rahafoorum analysis about Bondora Rating is one sided and inaccurate” ? I was doing my own analyze 4 month before rahaforum. And got the same results. As example your B for Spain is almost criminal thing. Same with many other places in your rating system. When you mix all together it looks better, but overall, very often, you just adding problematic loans to be bought with Estonian.

      I am not very much against of your ratings, but I do not like wrong comments like your last one.

    4. Hi Andrej,
      The enclosed file (https://www.dropbox.com/s/rekobw6xtphk0e1/bondora_xirr%20per%20year%20and%20grade.xlsx?dl=0) shows net annualized returns per each country and grade. Across all segments there are 3 where the performance has not been in line with the target results. These segments are Spanish B, C and D grades where returns have been 4.3%, -1.4% and -3.7% respectively. However these segments made up less than 2% of our inventory. Credit model update was released on 3rd of December which among other things will address this issue. In the near future we are planning to publish an overview of the performance of Bondora Rating model 1 also on our blog.

    5. You claim the results shown in “Rahafoorum” are biased, but you try to compare expected returns with “net annualized returns”, which for me is almost meaningless.
      As you probably know yourself, net annualized returns as bondora calculates are not a good measure of returns when a portfolio is still young, as it is in this case.
      I can tell you right away that your article won’t be taken seriously if you use that metric for comparison.

    6. Mart,

      You need to be clear here, when you say
      “The automated Portfolio Manager helps you invest in more loans and thereby also reduces the risks according to the pre-set strategy. It takes into account your portfolio size and adjusts the size of each investment that provides an optimal diversification level.”..

      THIS IS FACTUALLY INCORRECT. I was investing in the old world 1-2 loans a day diversifying by volume with the risk profile I could define with limitations also had minimal money sat on balance at any one time. Now I am lucky if I invest in 1-2 loan per week and sit with money on balance earning me nothing all the time (Which is actually money that Bondora can utilise). Setting bid values based on amount of loans held is a massively crude instrument for measuring risk reward against someones investments. My strategy as per any bank is to distribute risk and hold minimal money on balance. I have a high volume of loans spread thin (minimising risk). Under the new rules I repeat my exposure to each loan equates to anything between 0.5 – 1% (a 4-8 folder increase) of my investment and I have money sat on balance for days earning nothing. The banding on bid values should be based on balances on account not the amount of loans surely??

      I look forward to this being reviewed and it would have been nice for the exact way this was going to work to be published and even pushed out to your investors to get a view. I am sure that you would have got constructive comments in response and maybe a more finessed solution than we currently have.

      Looking forward to next year when this gets reviewed.