Mintos alters auto-invest algorithm

Mintos has unveiled changes to its auto-invest product following feedback from investors.

The European peer-to-peer lending marketplace relaunched its Mintos Strategies automated portfolios in August, offering a choice of three products rather than one.

Its conservative offering initially put funds into the highest rated loans with a score of A+ to B- but this has now been changed.

Instead, the conservative portfolio will only invest in loans with a rating of B+ or higher.

Additionally, investors in its high-yield strategy algorithm, which invests in the top 60 per cent of loans with the highest interest rates, will now have their funds invested before other users.

All of the Mintos auto-invest products have a maximum exposure of 15 per cent in each company and have a buyback guarantee as long as there is demand on the platform.

The strategies are only available for investments in euros.

Mintos said half of its active investors use the automated portfolio since its launch last year.

Read more: Mintos reaches €5bn of funded loans

The Latvia-based platform revealed earlier this month that it is planning to introduce appropriateness and suitability tests for investors.

It has applied for an investment firm licence in the country and as part of this will introduce tests to assess whether a chosen investment is suitable and appropriate for the investor’s knowledge, experience, financial situation and objectives.

There will be an appropriateness test used for manual and auto investments to evaluate the investor’s knowledge and experience.

If they fail, investors will be able to invest with a warning.

Investors using the Mintos Strategies auto-invest product will need to complete a suitability test that evaluates their financial situation and investment objectives, as well as their knowledge and experience. If the test is failed, some of the investing strategies might not be available.