US - The Ohio Public Employees Retirement System (OPERS) has successfully offered up $31bn in US equities for securities lending via an online auction.
During the auction held in late January, OPERS awarded to three principal borrowers for a term of approximately one year. The pension fund will re-auction the rights to the securities thereafter. The auction mandate was run by eSecLending, a global securities lending manager that administers securities lending programs for large institutional lenders, including pension funds. “The auction process allows us to maximize the value of our portfolios by generating incremental revenue while remaining within conservative risk parameters,” said Jerry May, securities lending officer for OPERS. “This is the optimal way to find the market value of our securities and increase the control over our securities lending program. We are very pleased with the results.”
OPERS’ securities lending programme generated $19m in revenue last year, and has predicted a “material increase” in the programe’s revenue for 2005. OPERS has assets of $64.5bn.
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