HSBC Global Asset Management is returning all profits from securities lending across its UCITS funds range back to investors.
A spokesperson said that the decision was taken ahead of the upcoming ESMA rules, which says profits from securities lending from UCITS ETFs should be returned to the investors in those funds. It felt the move was prudent and fair and therefore decided to enact the policy at the start of the month, said the spokesperson. The ESMA guidelines come into effect in February next year.
It is a decision we made based on what we felt was appropriate for this firm and our clients, said Sri Chandrasekharan, chief executive of HSBC Global Asset Management in an interview with Financial Times sister title Ignites Europe.
Previously the banks asset management division would earn and retain about 20 to 30 per cent of the revenue from securities lending by its ETF funds.
(JDC)