Sentences with phrase «from securities lending»
In my opinion, any index fund that keeps revenue from securities lending should first ensure its tracking error is no higher than its management fee.
moneysense.ca
The products were then ranked by total ownership costs, including both expense ratios and the cost offset from securities lending.
They might also earn money from securities lending and soft dollar commission arrangements as well.
In some cases, fees from securities lending pays for virtually all of the mutual fund's operating costs.
While mutual fund investors don't get all that gravy from securities lending, they do get some benefit from it.
The products were then ranked by total ownership costs, including both expense ratios and the cost offset from securities lending.
Its expense ratio falls in line with the segment and tracks well, while receiving a bit of extra revenue from securities lending in exchange for slight counterparty risk.
Plus, the money to be made from securities lending, the money made from keeping the price tight to the NAV (using their own designated brokers) can all be handled in house, no?
Demand for this service, which clients know as «prime broker lite,» helped drive up revenue from securities lending by 37 % during the first three months of this year from the first quarter of 2015, and up by 5.5 % from the October - December quarter.
Other securities lenders may divert up to 50 % of the revenues derived from their securities lending programs.»
Mutual fund sponsor Vanguard gives 100 % of its fees generated from securities lending back to its shareholders.
But it isn't clear whether this outperformance resulted from skillful trade execution by the fund's managers and gains from securities lending, or whether it was due to some lucky break, perhaps resulting from the sample of stocks bought or the timing of share purchases.
Brokerages are prohibited from commingling client assets, and even if their are delivery failures from securities lending, those issues are solvable, given time and the insurance.
No one was focusing on the weird losses from securities lending at the life subsidiaries of AIG.
Normally these revenues are very small, although the iShares S&P / TSX 60 (XIU) earned almost $ 3 million from securities lending in 2012.
Funds can also help performance by skillfully replicating their target index or by making money from securities lending.
I expect a fund to trail its index by an amount equal to its management fee, but if the tracking error is more than that, then revenue from securities lending might be used to close that gap.
For example, the iShares S&P / TSX 60 (XIU) has about $ 10 billion in assets and earned all of $ 157,000 from securities lending in the first half of 2011.
For example, the Claymore Canadian Financial Monthly Income (FIE) shows some revenue from securities lending (about $ 40,000 annually).