Post by Deleted on Nov 20, 2015 10:33:41 GMT
I have been puzzled about the FC Annualised return (after fees and bad debts), i.e. AER return rate, for some time.
I have my own very basic Excel sheet where I listed for years:
Date of Deposits(+)/Withdrawls (-); Amount Deposits(+)/Withdrawls (-); Year fraction (autocalculated); Total Invested capital (autocalculated); Fraction invested (autocalculated)
One line for each deposit/withdrawl and at the end the sums.
From my understanding of things (and this is how banks do calculate it), the AER is:
AER= Net Earnings (data taken from the FC Summary table)/Sum of invested fractions
But my calculation never matches FC display and I can't understand how and why. (difference is variable: - 0.2-0.4% with my calculation).
Given I assume the Net Earnings as a correct data from FC (I know this is a big assumption but it is to simplify things), the AER should NOT differ at all, as all the possible variables (fees, bad debt, recoveries etc) are taken out of the calculus.
Can anyone shed light or pass their excel to help with the AER calculation?
I have my own very basic Excel sheet where I listed for years:
Date of Deposits(+)/Withdrawls (-); Amount Deposits(+)/Withdrawls (-); Year fraction (autocalculated); Total Invested capital (autocalculated); Fraction invested (autocalculated)
One line for each deposit/withdrawl and at the end the sums.
From my understanding of things (and this is how banks do calculate it), the AER is:
AER= Net Earnings (data taken from the FC Summary table)/Sum of invested fractions
But my calculation never matches FC display and I can't understand how and why. (difference is variable: - 0.2-0.4% with my calculation).
Given I assume the Net Earnings as a correct data from FC (I know this is a big assumption but it is to simplify things), the AER should NOT differ at all, as all the possible variables (fees, bad debt, recoveries etc) are taken out of the calculus.
Can anyone shed light or pass their excel to help with the AER calculation?
