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The BlackRock securities lending program offers investors the opportunity to unlock the full potential of their portfolios. Is it possible to seek both risk controls and attractive returns? We think so, and market data shows that we consistently achieve solid results for our securities lending clients. Our coordinated investment management approach enables us to develop tools that help traders and portfolio managers help optimize performance and extract premiums around corporate actions and index changes.

Our securities lending program is:

  • Global: with offices in London, San Francisco and Tokyo, we lend securities in more than 30 markets and provide 24/6 "pass-the-book" trading executed on one firm-wide platform. Our traders, strategists, product development specialists, operations staff and client service teams work together at each location.
  • Integrated within the firm’s global portfolio management and trading functions. We have a long history of treating securities lending as a core component of the investment management process.
  • Resource-rich, with dedicated research, trading and risk and cash management personnel. In addition, BlackRock’s technology teams have developed custom client reporting, operations and trading platforms that are used globally throughout our business to help ensure operational efficiency and transparency.

BlackRock manages credit and market exposure of our funds and programs as a fiduciary responsibility. Securities lending risk management is fully integrated within the firm’s global risk management framework and an independent group assesses the risks being taken on behalf of the funds in which our clients invest.

Our risk management includes:

  • Ongoing due diligence
  • Ongoing monitoring of counterparties
  • Collateralization and daily mark-to-market
  • Conservative investment of cash collateral
  • Effective use of technology to strive towards operational excellence

Ten advantages of the BlackRock securities lending program

  1. 1)  Our fiduciary responsibility to our clients guides every aspect of our program
  2. 2)  Global presence and market insight
  3. 3)  Coordination among securities lending, portfolio management and trading teams
  4. 4)  Dedicated research and risk management teams
  5. 5)  Proprietary technology custom-built for securities lending participants
  6. 6)  Ability to extract premiums in the market around corporate actions and index changes
  7. 7)  A commitment to industry best practices and being on the forefront of new developments
  8. 8)  Experienced cash collateral management
  9. 9)  Positive lending income for all funds that have participated in lending since the program’s inception in 1981
  10. 10)Trades executed on one firm-wide, global platform

For inquiries on these products, please email: institutional.canada@blackrock.com.