John Hancock mutual funds switch to Citi's sec lending service
Around fifty mutual funds run by Boston-based investment firm John Hancock are switching to a new securities lending agent, Global Investor/ISF understands.
Citi’s agency lending desk will start provide stock loan services to certain mutual funds next week, replacing Goldman Sachs.
The conversion will occur this Friday, 9 December.
Many mutual funds earn extra income on investment and pension portfolios via securities lending.
The proceeds are often used to reduce the overall expenses of the fund and provide value to shareholders.
Mutual fund sponsor Vanguard, for example, gives 100% of its fees generated from securities lending back to its shareholders.
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