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📈 Net Annualized Return

💡 Purpose

LibreFolio reports annualized return only when the observed window is long enough to make compounding meaningful. The shared conversion is:

\[ \boxed{r_{\mathrm{ann}} = (1+r_{\mathrm{cum}})^{365/d}-1} \]

where \(d\) is calendar days. It is the inverse of:

\[ r_{\mathrm{cum}}=(1+r_{\mathrm{ann}})^{d/365}-1 \]

The implementation returns None when:

  • \(r_{\mathrm{cum}} \leq -1\)
  • \(d < 30\)
  • the computation overflows

Thirty-day guard

A one-week return annualized to 365 days can explode into meaningless percentages. LibreFolio therefore suppresses annualization below 30 days and displays an empty value instead of a mathematically correct but misleading CAGR.

🧾 Holdings View

For an open holding in “Your positions” / portfolio summary:

\[ r_{\mathrm{net}} = \frac{ \mathrm{MarketComponent} + \mathrm{Income} - \mathrm{FeesTaxes} }{ \mathrm{CostBasis} } \]

where:

\[ \mathrm{MarketComponent} = \begin{cases} \mathrm{CurrentValue}-\mathrm{CostBasis}, & \text{market value exists}\\ 0, & \text{price-less / valued at cost} \end{cases} \]

Annualization window:

\[ d = t_{\mathrm{report}} - t_{\mathrm{first\ lot\ affecting}} \]

Lot-affecting transaction types are:

\[ \{\text{BUY},\ \text{SELL},\ \text{ADJUSTMENT},\ \text{TRANSFER}\} \]

This includes in-kind successions, broker transfers, and adjustment-seeded positions. Old BUY/SELL-only discovery would miss those holdings.

🪟 Period View

For per-asset period contribution:

\[ \mathrm{PnL}_{period} = \Delta \mathrm{UGL} + \mathrm{Realized} + \mathrm{Income} - \mathrm{FeesTaxes} \]

The displayed period percentage remains:

\[ r_{\mathrm{period}} = \frac{\mathrm{PnL}_{period}}{|\mathrm{StartValue}|} \]

when StartValue is non-zero. Annualization can fall back to end cost basis for assets opened mid-period:

\[ \mathrm{ann\_base}= \begin{cases} |\mathrm{StartValue}|, & |\mathrm{StartValue}|>0\\ \mathrm{CostBasis}_{end}, & \text{otherwise} \end{cases} \]

Window start is clamped to the oldest FIFO lot still open at period end:

\[ t_{\mathrm{start}}=\max(t_{\mathrm{from}},\ t_{\mathrm{oldest\ open\ lot}}) \]

Then:

\[ r_{\mathrm{ann}} = \operatorname{annualize}\left(\frac{\mathrm{PnL}_{period}}{\mathrm{ann\_base}},\ t_{\mathrm{end}}-t_{\mathrm{start}}\right) \]

🧬 FIFO Lots

FIFO lot annualized return is net of allocated income, fees, and taxes:

\[ \mathrm{NetTotalPnL}_i = \mathrm{MarketPnL}_i + \mathrm{RealizedPnL}_i + \mathrm{Income}_i - \mathrm{Fees}_i - \mathrm{Taxes}_i \]
\[ \mathrm{NetTotalReturn}_i = \frac{\mathrm{NetTotalPnL}_i}{\mathrm{OpeningValue}_i} \]

The annualized value uses net_total_return, not gross total_return:

\[ r_{\mathrm{ann},i} = \operatorname{annualize} \left( \mathrm{NetTotalReturn}_i,\ t_{\mathrm{lot\ end}}-t_{\mathrm{opening}} \right) \]

where \(t_{\mathrm{lot\ end}}\) is the closing date for fully closed lots, otherwise the analysis end date.