Fidelity expands Agency Lending to third party asset managers and institutions

Fidelity Investments, one of the most diversified financial services firms in the U.S. with $10.3 trillion in client assetsi, today announced the launch of Fidelity Agency Lending, a comprehensive, digital platform that manages all aspects of securities lending for asset managers and other institutions. This solution brings together a range of features that firms are looking for in an agent lender, including the infrastructure, technology, and experience to improve returns and offer program customization and transparency. Fidelity Agency Lending offers:

  • A sophisticated automated lending platform that features AI loan decision functionality to help maximize opportunities and provides efficient distribution of assets.
    Unique benchmarking and transparency tools designed to improve investment decisions, corporate governance, and program oversight.
  • The ability to fully customize lending program parameters in an automated fashion using Fidelity’s sophisticated technology.
  • Real-time connectivity and automated reconciliations with many of the world’s largest global custodians, as well as access to Fidelity’s proprietary risk models to monitor counterparty risk and exposure.

“Current market dynamics are compelling institutions to take a more active role in their securities lending programs to find a competitive advantage,” said Justin Aldridge, head of Fidelity Agency Lending. “We believe firms are looking for an agent lender with both new technology and the proven ability to serve large, complex institutions, and we’re excited to offer that to the marketplace.”

“The launch of Fidelity Agency Lending is another in a long line of examples where Fidelity builds a sophisticated capability for use within the firm and, once established, commercializes it for the benefit of the industry,” Aldridge added.

Fidelity Agency Lending has been a securities lending agent for the Fidelity mutual funds since 2019 and is currently responsible for more than $2 trillion in assets.

“While we take a conservative approach to securities lending, we’re proud that our lending program could meaningfully improve the overall returns that we deliver to our fund shareholders,” said David Lane, head of Global Equity Trading at Fidelity’s Asset Management division. “Our teams have benefitted from the investments Fidelity Agency Lending has made in its technology, people and operations. And ultimately, they have benefitted our shareholders as well.”

Fidelity Agency Lending expands on Fidelity’s securities lending capabilities, which includes more than 20 years of servicing institutions and investors through its Capital Markets group with Fidelity Prime Services, Fully Paid Lending, and PB OptimizeSM. Fidelity invests billions of dollars annually in its technology enterprise-wide, leveraging its scale to develop new capabilities and enhancements to meet clients’ unique needs. For more information about Fidelity Agency Lending, please visit i.fidelity.com/agencylending.

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