Securities lending: Putting the investor first

Securities lending is a common practice among asset managers through which they lend certain securities from their portfolios to generate additional revenues. An effective securities lending programme can help to meaningfully offset fund expenses for investors, while mitigating against potential risks. How a fund provider approaches securities lending can reflect the firm’s overall philosophy – at Vanguard, that means giving investors the best chance for investment success. A Morningstar study ranked Vanguard first among 10 major fund sponsors in terms of the proportion of revenue from...