Lending Club Statistics
Investor Account Performance
The chart below shows the Adjusted Net Annualized Return of all investor accounts on the Lending Club platform that have invested in at least 100 Notes and that have not purchased or sold Notes on the Folio Investing Note Trading Platform.** Use the controls to the right of the chart to customize which accounts are included and to visualize how different factors can influence returns.*
You can customize the weighted average age of the Notes in the portfolio by moving the red bar at the bottom of the chart. Remember that the numbers at the bottom of the chart reflect the weighted average age of the Notes in a portfolio, and not the age of the account.
Minimum Number of Notes
Maximum Note size is less than
of total portfolio value
Weighted Average Interest Rate
The purpose of this chart is to illustrate how returns can change over the life of an investment and how different factors can influence the volatility of returns. By exploring the controls next to the chart, you can visualize how the number of Notes, investment concentration, average interest rate, and average Note age may impact the volatility and level of returns of a portfolio.*
Use the controls on the chart to customize the population of accounts that you would like to include and to explore how different factors may impact the volatility and level of investment returns.*
Populations of accounts that are more tightly grouped around the median line may have less volatile returns. Populations of accounts that are more spread out vertically may have more volatile returns.
Owning a small number of Notes typically leads to more volatile returns.*** For example, if an account holds 4 Notes and the corresponding loans are all fully performing, the returns will likely be high relative to other accounts for a period of time. However, if one of the corresponding loans charges off, the account value may decline substantially and the returns may be low relative to other accounts.*
Diversification - spreading your investment equally across many Notes corresponding to many different Borrowers - may help drive more stable returns.*** Learn more.Concentration of an investment
Concentrating an investment may lead to more volatile returns.*** Concentration may occur when an investor purchases:
- 1. Notes corresponding to a small amount of loans and Borrowers, rather than spreading the investment evenly across Notes associated with many different loans and Borrowers, or
- 2. One or more Notes that represent a disproportionate percentage of the overall portfolio, even where an investor holds many Notes.
For example, if 50% of your portfolio corresponds to a single loan (either because a majority of your Notes correspond to the loan or because the Note or Notes corresponding to the loan represent 50% of your portfolio) and the loan is fully performing, the returns will likely be high relative to other accounts for a period of time. However, if the loan charges off, the account value may decline substantially and the returns may be low relative to other accounts.*Weighted Average Interest Rate
Returns may be more stable on Notes with lower interest rates because the corresponding loans are expected to have lower charge off rates.*** Returns on accounts with lower average interest rates may decline less over time than accounts with higher average interest rates.*
Returns typically decline over the life of an investment as some of the corresponding loans enter past-due status and charge off. In the chart above, the weighted average age of the portfolio refers to the weighted average age of the Notes in the portfolio, not the age of the account or the time period in which the Notes were issued.* Please keep in mind that, as you reinvest loan proceeds or make additional Note purchases, such new investments will reduce the average age of the Notes in your portfolio, slowing the decline of your returns by reducing the impact of maturing Notes.
Accounts with the same weighted average interest rate may hold a different composition of Notes and have different returns. For example, an account that includes Notes of all grades might be more volatile than an account that includes only B and C grade Notes, despite having the same weighted average interest rate.*** While this is a general guideline, it is certainly not true in every case and the performance of any individual portfolio may vary.Performance
It is inevitable that some amount of loans will charge off. If a portfolio happens to include a higher or lower number of loans that charge off relative to other accounts, the overall performance of that portfolio will deviate from those other accounts, regardless of the average interest rate, Note age, or concentration of the portfolio.Vintage
Vintage, or the time period in which a Note was sold by Lending Club, can influence returns in several ways. For example, the credit policy that was in place when the corresponding loan was made and the macroeconomic conditions during that time may result in higher or lower returns from the Note relative to Notes sold at other times.***
The chart above does not illustrate performance by vintage; the accounts included in the chart include Notes with various vintages.Buying and Selling Notes on the Note Trading Platform
This chart only includes accounts that have not transacted on the Folio Investing Note Trading Platform.** Accounts that have transacted on the Note Trading Platform are excluded because they may have purchased or sold Notes at a premium or a discount to their outstanding principal at the time of the transaction. While such premium or discount impacts returns, it is not indicative of the performance of the underlying Note through to its maturity.
- 1. Data from actual Lending Club accounts. This chart includes investor accounts that hold at least 100 Notes, have not transacted on the Note Trading Platform, and have characteristics specified in the controls next to the chart. This chart is not a prediction of how a particular portfolio will actually perform. The actual performance of any particular portfolio may be impacted by, among other things, the size and diversity of the portfolio, the exposure to particular Notes or group of Notes, as well as macroeconomic conditions, and may perform differently than those accounts presented in this chart.
- 2. 90th percentile: 90% of returns for selected accounts are less than or equal to this value.
- 3. Median: Indicates the midpoint of returns for selected investor accounts.
- 4. 10th percentile: 10% of returns for selected accounts are less than or equal to this value.
- * Adjusted NAR, NAR, and all models and estimates are not guaranteed to be accurate and may differ materially from actual results. Historical performance is not a guarantee of future results. Lending Club Notes are not guaranteed or insured, and investors may lose some or all of the principal invested.
- ** FOLIOfn Investments, Inc. ("Folio Investing") is a registered broker-dealer and member of FINRA and SIPC. Folio Investing is based in Vienna, VA and is not affiliated with LendingClub Corporation. Folio Investing operates the Note Trading Platform as an SEC approved alternative trading system (ATS). More information about Folio Investing is available at www.folioinvesting.com. Folio Investing has no role in the original issuance of the Notes and is not responsible for and does not approve, endorse, review, recommend or guarantee the Notes or the accuracy, reliability, or completeness of any data or information about the Notes.
- *** This information is not intended to be investment advice. You should consult your financial advisor if you have any questions or need additional information.
Benefits of Diversification
These charts illustrate how diversification-spreading an investment equally across hundreds or even thousands of Notes-can drive more solid returns. Lending Club investors with more diversified accounts have generally experienced less volatility and more solid returns than investors with more concentrated holdings. Diversification increases when you purchase additional Notes related to different borrower loans.
This chart demonstrates how greater diversification, or owning more Notes, can reduce the volatility of returns. Moving from left to right in the chart, the number of Notes per account increases and the lines in the chart get closer together.
This illustrates that as accounts hold more and more Notes, each Note represents a smaller portion of the total and their returns may become more stable and consistent.
This chart shows that diversified accounts-those with at least 100 Notes of relatively equal size-are more likely to have positive returns.
- Accounts with more than 100 Notes and with no Note representing more than 1% of the total account value are the most likely to have positive returns.
- Accounts with fewer than 100 Notes and with some Notes possibly representing more than 1% of the total account value are the most likely to have negative returns.
Diversification helps to limit the impact of any single charge off by spreading your money across many different Notes. For example, say you have $2,500 to invest in Lending Club Notes. You could invest:
- $2,500 in one borrower; or
- $25 in 100 different borrowers.
If you invest in one borrower and that borrower becomes late and the loan eventually charges off, you could potentially lose 100% of your total investment amount.
If you invested a relatively equal amount in 100 different borrowers and that same borrower becomes late, your potential loss on that particular Note would be limited to 1% of your total investment amount.
Charts include accounts that have a weighted average Note age of 12 months or older, hold at least 5 Notes unless otherwise noted, and have not transacted on the Note Trading Platform.
1. Adjusted NAR is a return measure that models potential losses on a loan prior to that loan being charged off. Adjusted NAR is calculated using the formula described here. It is based on monthly borrower payments actually received net of Lending Club’s service fees, actual charge offs, recoveries, and estimated future losses. To estimate future losses, we apply a loss rate estimate to the outstanding principal of any loans that are past-due but not charged off. The loss rate estimate is based on historical charge off rates by loan status over a 9-month period. Historical returns are not a promise of future results. Lending Club Notes are not insured or guaranteed and investors may have negative returns. Individual portfolio results may be impacted by, among other things, the diversity of the portfolio, exposure to any single Note or group of Notes, as well as macroeconomic conditions.
2. 90th Percentile: 90% of accounts have returns that are less than or equal to this value.
3. Median: Half of accounts have returns that are less than or equal to this value.
4. 10th Percentile: 10% of accounts have returns that are less than or equal to this value.
* Data in these charts is for informational use only. It is impersonal and not individualized for any specific investor's financial situation and is not investment advice. These charts are not intended to be, nor should you interpret them to be, a prediction of how a particular portfolio will actually perform. You should always carefully consider investments in any security and you should be comfortable with your understanding of the investment. You may also consider consulting investment professionals.