ESG-compliant Solutions to Stock Lending Bans

Distributed Ledger Technology in Service to Activist Investors

Stock lending agents and prime brokers were challenged with a once-in-a-career opportunity after the December 3rd, 2019 announcement that Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund, had decided to ban the lending of their offshore stocks -- nearly half of their holdings. That bold decision by the fund's CIO will reportedly cost as much as $300 million in lost annual income and “could prove hugely disruptive to equity markets if others follow its lead,” according to the Financial Times.

Wednesday, December 4, 2019/Author: Ed Blount/Number of views (243)/Comments (0)/
Categories: Commentary