Fidelity has expanded its securities lending programme to include National Financial Services, LLC (NFS), a Fidelity-affiliated lending agent, doing business as Fidelity Agency Lending.
Currently, Fidelity’s agency lending programme includes active equity funds, index funds, and certain collective investment trusts.
In Fidelity’s draft Funds Update, they cited that all revenue from securities lending, excluding lending agent and custodial fees, will continue to go back to each fund to benefit shareholders.
The fees will be structured to ensure that the funds pay less in agency fees to NFS than they would have paid to the current lending agent under the existing arrangement.
Fidelity noted that NFS’s automated lending technology is expected to enhance the funds’ lending programme.
Additionally, they explained that these changes will have a positive impact on the securities lending revenue generated for the funds.
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