Annual net returns update
Today, we’ve updated the headline annual net return rate across the site.
The previous reported headline rate was a simple average across investors and was 5.7%. This has now risen to 5.8%.
As part of this update we have decided to change the headline rate from a simple average to a weighted average based on the amount each investor has lent.
Given the range and types of investors on the site, we think this is a better reflection of the performance of all lending through Funding Circle. We also expect this approach to be in line with FCA regulation starting in April 2014. The headline rate is now showing as 6.1%, up from a comparative figure of 5.9% previously.
The weighted average for investors who are lending to more than 100 businesses with a maximum exposure of 1% of their lending to anyone business is 6.3%, and 71% of investors are earning more than 6%, up from 62% in the previous period.
You can see the full updated statistics on the statistics page.