Broadridge launches securities lending solution for mutual funds

The solution is currently being used by a number of clients including a tier-one global investment manager.

By Joe Parsons

Broadridge has launched a new fund-by-fund comparative securities lending solution for mutual funds companies and the boards that oversee their funds.

The Broadridge Securities Lending Board Insights service creates client-specific reports allowing firms to monitor the relative cost, fee ‘splits’ and income obtained from their securities lending arrangements.

It will also help all firms reduce risks related to mal-distributed securities lending income.

“Faced with mounting pressure on fees and the need for a clearer understanding of competitive financials, many funds are looking to securities lending programmes to maximise yield on their long-term holdings,” said Eric Bernstein, head of asset management solutions, 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 solution is currently being used by a number of clients including a tier-one global investment manager, Broadridge added.

The reports could also provide useful insights for the agent lender community as they look to benchmark their offerings against other service providers, and to discuss programme parameters with clients.

Similarly, IHS Markit deployed a number of upgrades to its securities finance platform last month, allowing securities lenders to analyse their performance against best matched peer groups, while borrowers could compare borrow rates and perform peer group analysis.

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