Broadridge Financial Solutions has launched Broadridge Securities Lending Board Insights, a firm-specific fund-by-fund comparative securities lending assessment solution for mutual fund companies and the boards that oversee their funds.
This client-specific report lets companies monitor the relative cost, fee ‘splits’, and income obtained from their securities lending arrangements. It will also help all interested parties receive appropriate rewards for the risks they undergo in their lending programs and helps to reduce risk related to mal-distributed securities lending income. The solution is currently being used by a number of clients including a tier-one global investment manager.
“Faced with mounting pressure on fees and the need for a clearer understanding of competitive financials, many funds are looking to securities lending programs to maximise yield on their long-term holdings,” commented Eric Bernstein, head of Asset Management Solutions at Broadridge. “Based on Broadridge’s unique data set, coupled with rich subject-matter expertise, the reports help boards and fund companies get ahead of today’s challenges to capitalise on what’s next, uncovering opportunities to improve their returns.”
The Securities Lending Board Insights reports are designed specifically for those who oversee (rather than carry out) securities lending arrangements. They also fulfil obligations under Section 15(c) of the Investment Company Act of 1940, as well as the SEC mandates and other regulatory requirements.
The reports may also provide useful insights for the agent lender community as they look to benchmark their offerings against other service providers and to discuss program parameters with clients. For more information click here.