jfm
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Post by jfm on Nov 10, 2017 15:26:51 GMT
Can anyone suggest how AltFi Data would be able to calculate a one year return of 12.4% for AC portfolio? Surely the rates on the platform are nowhere near that.  |
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Steerpike
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Post by Steerpike on Nov 10, 2017 15:47:53 GMT
Can anyone suggest how AltFi Data would be able to calculate a one year return of 12.4% for AC portfolio? Surely the rates on the platform are nowhere near that. I have been with Assetz for nearly four and a half years and have XIRR to date of 9.6%, rates are generally lower now and my XIRR was around 10% a while ago. I know some investors have done better than I have, but 12.4% is a good record.
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Post by chris on Nov 10, 2017 16:15:10 GMT
Can anyone suggest how AltFi Data would be able to calculate a one year return of 12.4% for AC portfolio? Surely the rates on the platform are nowhere near that. There's a blog post linked in the email that hints at why. AIUI the figures are calculated by AltFi using the last three years of our data. They have their own standard for declaring defaults that they apply to all platforms equally, and that due to our strong recoveries of loans that defaulted in years 1 & 2 of that data that gives a boost to the return that is applied in year 3.
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Post by stuartassetzcapital on Nov 14, 2017 16:24:23 GMT
It’s quite simple to explain how the 1 yr data comes out 12% net return and that is that the 3 year return is 27% or so and that averages 9% pa and therefore the prior years had over cautious loss assumptions made by Altfi data in the early days which in their words are now being over-recovered and we now actually show +ve losses ! That lifts the return to a 12 month trailing level that is higher than a new lender could achieve.
Nonetheless their analysis is based on their own granular cashflow methodology that has no place for platform fed optimism and in the early years uses industry standard loss expectations and over time adopts the platform’s actual ability to recover defaults.
I hope that helps and being top of the table on a 3 year basis is the main takeaway we feel.
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