Whether you are a social or commercial investor on MYC4, or perhaps something in-between, one of the thrilling – and at times frustrating – things about investing on the platform is to follow the performance of your own loan portfolio. Which of my loans have been fully repaid? Are any of my loans at risk of defaulting? What is the net result of my investments?
We are often contacted by investors who are trying to find the answer to the last question. They are rarely looking for fancy ratios or complicated calculations, yet they do not feel that their MYC4 account supplies the simple information they need. If you are one of those investors, this basic tutorial should help you solve the problem.
You will find the data you need on your Profit and Loss page. Log on to www.myc4.com, click on My Account, and go to Profit and Loss in the left hand menu. Here you will see your profit and loss for 2011. Select All Years.
There are a number of figures here which may be of interest to you, but to calculate your result you only need the following:
- Earned interest after tax and currency
- Defaulted principal
- Recovered principal
- Currency gain/loss on principal
As the text indicates, the figure for earned interest is already accounting for withholding tax and currency, however there is almost always a currency effect on the loan principal as well. An important parameter to remember is therefore currency gain/loss on principal.
The actual calculation should be done as follows: Earned interest after tax and currency minus Defaulted principal plus Recovered principal plus Currency gain on principal OR minus currency loss on principal.
Here are a couple of examples with data from two MYC4 investor accounts:
- Earned interest after tax and currency: 4,009.27
- Defaulted principal: 353.77
- Recovered principal: 0.00
- Currency gain/loss on principal: -1,718.80
Net result: 4,009.27 – 353.77 – 1,718.80 = 1,936.70 euro.
- Earned interest after tax and currency: 994.52
- Defaulted principal: 3,426.99
- Recovered principal: 98.87
- Currency gain/loss on principal: -83.82
Net result: 994.52 - 3,426.99 + 98.87 – 83.82 = -2,417.42 euro.
Note that if you are an investor with defaulted loans in Côte d’Ivoire, it may be necessary to make an additional calculation. The MISCOCI coverage from MYC4 came into your account as a money upload, not a recovery. You will therefore need to adjust the Recovered principal figure by adding the MISCOCI amounts (look under Transfers on your account statement for 2009). In the second example above, the investor received 1,906.50 euro back through this coverage, making the net result -510.92 euro instead of -2,417.42.
Let me know if you have a good idea for another aspect of investing on MYC4 that you would like to have explained or clarified here on the blog. Remember that you are also always welcome to write to us at firstname.lastname@example.org with any questions you may have.