P&I: San Francisco ends seclending program citing low returns, may return as interest rates rise

Editor’s Note: an interesting example of a smaller pension plan ending lending in the age of low demand for General Collateral and the attention that securities lending requires relative to the risk exposure. This seems a couple of years overdue.

San Francisco axes securities lending program
BY RANDY DIAMOND

San Francisco City & County Employees’ Retirement System has voted to end its securities lending program, confirmed board secretary Norm Nickens in an interview Friday.

Mr. Nickens said the program will wind down over the next few months following the board vote Wednesday.

The program is being discontinued concurrently as the pension switches custodians to BNY Mellon from Northern Trust, which had provided securities lending as part of its overall custodial services.

The full Pensions and Investments article is available online at http://www.pionline.com/article/20170414/ONLINE/170419902/san-francisco-axes-securities-lending-program

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