US - eSecLending has awarded securities lending exclusives of approximately US$84bn in US equity and non-US fixed income securities for the California Public Employees' Retirement System (CalPERS).
It meant that Lehman Brothers Inc won the majority of auctioned US equity assets and will retain exclusive borrowing rights to the portfolios for the term of the agreement.
Meanwhile, BNP Paribas won exclusive rights to access portions of the fixed income funds in which it had expressed an interest.
CalPERS also awarded a portion of the US equity assets to Boston Global Advisors, a division of Goldman Sachs, to lend on an agency basis.
Dan Kiefer, opportunistic portfolio manager for CalPERS, said: “CalPERS is extremely pleased with the results of the recent US equity and non-US fixed income auction. The auction process again has achieved remarkable returns for CalPERS’ securities lending program.”
Securities lending is an investment discipline in which institutional investors, including pension funds and mutual funds, lend securities to earn incremental income on their holdings.
“Our lending program is actively managed and by repeatedly re-auctioning our lendable assets, we continue to optimize our return which we expect to result in another record year of earnings for our securities lending program,” said Kiefer.