ARCO, an Italian closed pension fund, chose State Street as part of its compliance with guidelines outlined earlier this year by the Italian pension fund regulator, the Commissione Di Vigilanza Sui Fondi Pensione.
The guidelines established the option of direct securities lending as an additional resource to help pension funds optimise the oversight of their investment management activities.
Massimo Malavasi, general manager of ARCO, said: “Partnering with State Street will give us the option of using direct securities lending as an additional solution meant to support the optimisation of the investment management activities for the fund.”
“Their security lending services will also enable ARCO to get returns, which could be partially used to cover current investment management control and advisory expenses, as well as support and develop the finance department of the pension fund.”
Riccardo Lamanna, head of State Street in Italy, added: “Our experience with servicing pension funds means we can offer an integrated platform, with the ability to add further services when required.”