Interesting anomaly on my first RAR (I hope).

Listed today as 11.60% as at 17/06/2017.

Current XIRR: 17.3% (which includes reduction due to tax, but not losses due to defaults as yet).

I see this discrepancy due to three things:

1. The first month investment was relatively small (initial cautious approach)
2. The amount invested in a short period of time
3. The RAR calculation includes the last month investment, but not the bulk of the resulting interest for that month

Based on the above I'd hazard a guess based on the ratio of investment in the last included month:

(1 + (33149.33/85424.52)) * 11.60 = 16.1%

However, my initial month included significantly more A and B grades, so I think 16.1% is very conservative.

I guess I'll just have to wait a few months to get a more meaningful value...

My conclusion - RAR is not a good base value to use early, and over time gives a poor indication of 'current' earnings - using XIRR is likely to be a much better choice.

RAR.png
Harmoney RAR graph.