Finadium
November 2024

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Finadium’s 2024 survey of asset managers in securities lending presents best practices for program management across major trends in corporate governance, indemnification and proxy voting. Although revenues may be down in 2024, managers report broad satisfaction with their programs so long as other important metrics are met. Meanwhile, programs must also respond to multiple new regulatory priorities and increasing borrower sophistication to mitigate the balance sheet impact of the transaction.

Since 2008, Finadium’s survey of asset managers in North America and Europe has tracked current operational practices and forward-looking thinking of this sector. This year’s report covers 31 large institutional asset managers with $45.5 trillion in assets. Product lines include Undertakings for Collective Investments in Transferable Securities (UCITS) funds, mutual funds, exchange-traded funds (ETFs), individual accounts and insurance assets.

Securities lending oversight continues to mature, with more firms than ever viewing lending as a front office function overseen by investment committees. As more assets move into passive portfolios, the ability of a securities lending program to increase basis point returns is a strategic advantage. This increases the visibility of lending and has led to increased education and awareness throughout large asset management complexes.

This report should be read by asset managers and their agent lenders, custodians, technology and legal advisors, and service providers. The report provides useful insights about the present and future of securities lending at asset managers and insurance companies, and ideas for where this segment of the securities lending market is heading.

Table of Contents

  • Executive Summary
  • The Derisking of Asset Manager Securities Lending Programs
    • – Methodology
  • Corporate Governance
    • – Data and Technology
    • – Indemnification Thinking
    • – Central Treasury and Collateral Optimization
  • Proxy Voting, ESG and Form N-PX
  • Revenue and Collateral Trends
    • – US and European Fee Splits
    • – Fund Returns
    • – Collateral Thinking
  • Other Program Factors
  • About Finadium LLC
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