Liberum AltFi Returns Index
The Liberum AltFi Returns Index (LARI) is designed to measure the returns generated from Marketplace lending.
Index values are time-weighted, published as aggregate annualised returns, measuring what an equal time-weighted exposure to every loan made would have returned over a preceding 12 month period.
The Index is currently updated on a monthly basis.
Platforms are eligible for inclusion if they satisfy specific eligibility criteria. Currently, the Index calculations are based on aggregated data from the 4 largest UK platforms by origination volume:
To ensure maximum accuracy and transparency the Index is constructed using the cash flows from every loan made by the eligible platforms. The Index is updated at the end of each month to reflect daily changes in loan cash flows.
*As at 31st May 2016
Trailing 12 Month Return
One of the key platform eligibility criteria for index inclusion is transparency. From a practical perspective daily loan by loan data is needed to allow the construction of the Index. However, we also believe that transparency is an essential quality to ensure the sustainable growth of this asset class. All contributing platforms agree and the commitment to transparency is such that as well as providing the required cash flow data for the Index calculation, they have also agreed to publish key loan by loan details publicly. New loanbooks will be published each month initially.
Link to Funding Circle Loanbook
(Requires Funding Circle Login)
The Liberum AltFi Returns Index is maintained by AltFi Data and sponsored by Liberum. The Index is rules based with Index Committee oversight. The full Index methodology is available here.