- My net investable assets increased to $650,339.
- The IRR for the trailing 12 months (TTM) decreased to 7.98%.
- I added commercial real estate (CRE) investments to my portfolio.
Net Investable Assets: $650,339
|Direct Lending Income Fund||$487,118||$792,181||$305,063|
The increase was $30,706 more than forecast. This was primarily driven by the additional income from salary. Higher salary was due to the appreciation in the RSUs and lump sum relocation package from my full-time job. Lower investment return was due to a large unexpected loss of Lending Club ($3,982 actual loss vs. $5,000 expected gain) and lower return of DLI Fund (10.89% actual vs. 12% forecast). Over the next few years, my salary will remain flat while a passive income continues to grow.
Internal Rate of Return (IRR): 7.98%
|Account||Allocation||XIRR (TTM)||XIRR (TOT)|
|Direct Lending Income Fund||84.16%||10.75%||10.73%|
My IRR continued to suffer from under-performance of recent vintages of lower grade Lending Club loans (particularly grade E-G). Allocating a large portion of my portfolio to Lending Club was a big mistake. The discrepancy between actual and expected return continue to worsen, leading me to consider other investments. I’ve stopped automated reinvesting for the foreseeable future and continue winding down all Lending Club accounts. I plan to transfer Roth IRAs from Lending Club to Vanguard.
The performance of DLI Fund is much more stable and predictable. I split my portfolio 90/10 between the hedge fund and commercial real estate. An expected return is 12% and 20% respectively. I will continue to leverage credit card balance transfers to increase return.