Posted by Rob Garcia :: June 9, 2009 @ 7:30 amOn Friday we launched a new feature that gives you a measure of your performance to date and how it stacks against the entire Lending Club investor community. The Net Annualized Return measure is calculated daily as a weighted average return on invested capital and is based on actual payments received to date in your Lending Club portfolio.
This new feature leverages our transparency and gives you an up-to-date snapshot of all investors in our financial community.
This feature helps establish some interesting facts on our investor community performance as of June 7, 2009:
- The average net annualized return of all investors is 9.90% since June 2007.
- Investors in the $50,000-$60,000 range are currently achieving the highest net annualized return at 11.96%.
- Over 88% of all investors are earning a net annualized return of 6% or more.
- Over 74% of all investors are earning a net annualized return of 9% or more.
Just as a reminder the Notes are offered by prospectus, which can be downloaded here.
As always, feel free to drop us a note with your comments on these new features and share with us any additional feature ideas.
Rob
3 Comments
Great job churning out excellent features, Rob and LC team.
I love this new feature, but would also like to see how other lenders are performing, and what their investment strategies are.
For me, I'm in the 15% percentile, with a solid 7.5% return. I'm very happy with it since I kept it low risk so far. Perhaps I'll venture into more C and D loans, but I'd like to see what other lenders are doing.
The new graphs and web pages are a nice touch. I am still hoping for some lender type tools/options such, as expanded filters (select ones I don't want to see), but mostly I would love to see a lender forum. I think it would strengthen LC and give us a place to ask both LC and each other questions and pose surveys.
As for my graph... I get my first payment TOMORROW!!!! My summary pages say 11.61 percent. Now we shall how well I choose borrowers that will pay back ( I'm not worried).
I have been enjoying my investment at Lending Club for 15 months now. One thing I noticed - these return values are a bit optimistic because they don't account for dead time. During the SEC registration process, there was quite a bit of dead time - so while my Net Annualized Return as reported by LC is just over 9%, my actual annualized return has been 7.3%. This was a special situation, of course - but anyone who doesn't really stay on top of reinvesting will suffer some drag on their return relative to the LC metric due to this.
Not that I am complaining about a 7.3% return!
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