Yes, your net return can fluctuate over time based on the actual interest and principal repayments received. Overdue loans might start performing again and current ones might become delayed. Recovery processes can take years to collect every cent owed, so even performance of very old portfolios might increase substantially over the years.
Our servicing, collection and recovery practices are continuously improved and even higher risk portfolios can start behaving like lower risk ones.
Most of the fluctuations we have witnessed have been positive due to recovery efforts. Using data since 2012 there have been variances between -8.1% to +4.4%. We calculate these fluctuations like this: The current net return vs. the net return calculated at the end of the specific calendar year.
You can get regular updates on recovery performance on our blog in monthly blog posts.