State Street to manage Nuveen's new securities lending programme
Latest news
State Street to manage Nuveen's new securities lending programme 18 August 2020New York Reporter: Drew Nicol
Image: Atstock Productions/Adobe.com
Nuveen, a US asset manager, has begun a securities lending programme for its mutual funds to earn additional income.
State Street has been appointed as the agent lender for the programme.
In a disclosure notice to clients published this week, Nuveen explains that the funds may lend portfolio securities representing up to one-third of the value of its total assets in return for cash collateral equal to at least 102 percent of the value of the securities loaned.
Lent assets will be recalled in time to participate in corporate actions that are “considered important with respect to the investment,” Nuveen confirms.
Nuveen, which is a wholly-owned subsidiary of TIAA, a financial planning firm, boasts eight mutual funds.
The largest is the High Yield Municipal Bond Fund with $18.9 billion in net assets, while the smallest is the Strategic Municipal Opportunities Fund with $944.4 million.
Nuveen declined to share further details on the programme or explain what led to the programme being launched now.
NO FEE, NO RISK 100% ON RETURNSIf you invest in only one securities finance news source this
year, make sure it is your free subscription to Securities Finance Times
Image: Atstock Productions/Adobe.com 