19 June 2017
New York
Reporter: Drew Nicol

Howard/Miller adjusts fund’s lending programme


US investment manager Howard/Miller Investments has revised its investment policy for its high income equity fund to exempt its securities lending activities from its leverage limits to allow for a more flexible policy.

The firm, which manages $6.6 billion in assets, explained in a note to investors that securities lending and other financing activity, such as repo and swaps, currently fall under the ‘effective’ portion of the fund’s leverage strategy, as they have “have similar effects as leverage”.

There is currently a 20 percent leverage limit on assets within the fund, but Howard/Miller has decided to exempt securities lending from this, to allow the fund “to deploy a more flexible securities lending policy”, according to a spokesperson.

“A securities lending programme, in our view, should benefit the fund and its shareholders by generating additional income.”

The calculation of the 20 percent leverage limit on assets will no longer apply to securities lending transactions as of 15 August.

Miller/Howard focuses on income-producing equities, with an emphasis on high-quality stocks with high yield and strong dividend growth.

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Broadridge expands sec finance project team
25 September 2017 | London | Reporter: Drew Nicol
Broadridge has recruited Martin Walker as head of product management for securities finance and collateral management
US Volcker Rule not fit for purpose, says SIFMA
22 September 2017 | New York | Reporter: Drew Nicol
The US Volcker Rule is too broad, excessively complex, and uniquely prescriptive, according to the Securities Industry and Financial Markets Association
Pension fund mandate for BNP Paribas
22 September 2017 | London | Reporter: Drew Nicol
BNP Paribas has been appointed to provide global custody for £3 billion in pension fund assets for the West Sussex Pension Fund
Pirum joins South African securities lending association
21 September 2017 | Johannesburg | Reporter: Drew Nicol
Pirum Systems has joined the South African Securities Lending Association
AcadiaSoft expands user base for IM compliance
21 September 2017 | Massachusetts | Reporter: Drew Nicol
The second phase of the IM rules went live on 1 September under the regulatory framework of BCBS and IOSCO
FCA takes pragmatic approach to MiFID II deadline
20 September 2017 | London | Reporter: Drew Nicol
The UK’s financial conduct authority has indicated it will accept a soft roll out of the second Markets in Financial Instruments Directive in January
EquiLend and Trax partner for SFTR solution
20 September 2017 | London | Reporter: Drew Nicol
Trax and EquiLend are joining forces to tackle SFTR reporting requirement with a a full front-to-back solution for mutual clients