LendingRobot Series, or LendingRobot Classic; That is the Question.
We just launched LendingRobot Series, the first RoboFund for alternative lending, and many prospective investors want to know, whats the difference from LendingRobot’s classic product?
In this article, we’ll go through the differences of each to help you decide which investment solution is right for you.
LendingRobot Series is a pooled investment fund, in which all investors buy into the fund, and LendingRobot directs investment allocations across many origination platforms. In this method, LendingRobot has complete discretion on when and on which platforms it will invest; clients have the ability to allocate their funds amongst four Series, each with its own discrete investment objective. LendingRobot Series dramatically simplifies investment in alternative lending, and investors can easily see the cumulative value of their portfolio, change allocation between series, and initiate cashing out at any time. Due to regulation, the fund can only accept accredited investors willing to invest a minimum of $100K.
LendingRobot Classic is a tool that remotely manages existing investment accounts. There are two main methods for using Classic: the first is to utilize LendingRobot’s research to easily create an investment approach that aligns with your risk tolerance, and the second allows sophisticated investors the ability to create their own custom investment strategy that LendingRobot will execute.
Here is a side-by-side comparison of the two products:
|LendingRobot Series||LendingRobot Classic|
|Loan Origination Platforms||Number of Loan Origination Platforms Supported||4 – LendingRobot Series was designed to easily add more origination platform.||3 – LendingRobot Classic is limited in the addition of origination platforms.|
|Allocation Across Multiple Loan Origination Platforms||Yes, automatically.||Investors must manually allocate their investments amongst platforms.|
|Need to Create Multiple Loan Origination Platform Accounts||No, LendingRobot Series automatically allocates to invest on all origination platforms.||Yes, on LendingRobot Classic you will need to sign up for each origination platform separately.|
|Investors Must be Accredited||Yes, LendingRobot Series has to abide by strict regulations for the fund.||Depends on the marketplace – Funding Circle (U.S.) requires investors to be accredited.|
|Investment Planning||Minimum Account Size||$100K+ (The minimum account size on LendingRobot Series may change in the future.)||None|
|Method||Simple, LendingRobot Series only requires you to select a Risk Level and Time Horizon.||Manually, LendingRobot Classic has different levels of automation that must be chosen.|
|Account Management||Centralized Note Details||Yes||Yes|
|Liquidity||Accelerated Cash Out||Two weeks to Loans’ Maturity||Wait for Loans to Reach Maturity|
|Transparency||Note Transactions||LendingRobot Series discloses all note transactions through blockchain reports.||In LendingRobot Classic, we do not have direct access to the assets so we are limited in origination platform controls.|
|Management Fees||Costs||1.00% Assets Under Management (AUM) + fund expenses of 0.59% (capped) (billed weekly)||0.45% annual Assets Under Management (AUM) (billed monthly)|
|Management Fee Payment Method||Automatically deducted||Charged via Credit Card|
|Documents for Tax Returns||Yes, form K-1 will be provided.||No, only Lending Club accounts created through LendingRobot will be provided tax statements.|
- Vanessa Hoying
- February 9, 2017
- 0 Comment