Hong Kong – Citi today announced that it has partnered with Hong Kong's CSOP Asset Management Limited to lend their global equity portfolio via Citi's leading Agency Securities Lending product to drive higher returns on idle asset holdings.
The partnership highlights growing interest in the asset management industry to include securities lending as an additional income driver. This is evident in Hong Kong, and other markets in Asia, where local asset managers are increasingly accessing well-established securities lending in the region and globally.
Securities lending is where financial assets such as equities are transferred temporarily from a lender to a borrower in exchange for a fee, with collateral to back up the transaction. The borrower agrees to return the securities either when the lender demands it, or at an agreed-upon time. Asia continues to provide high returns for securities lending participants, and the segment has grown exponentially in the last five years as the asset management industry has expanded.
"Securities lending is a natural evolution for CSOP Asset Management as we look to enhance the returns on the assets held within our fund structures for investors. The partnership with Citi Agency Lending is a key step in assisting us with that goal," said Ms. Chen Ding, Chief Executive Officer of CSOP Asset Management Limited.
"This partnership is testimony to the growth of securities lending in the investment management space. We are delighted CSOP Asset Management has chosen Citi to help them achieve higher returns for their funds," said David Russell, Head of Prime, Futures and Securities Services, Asia and Hong Kong Head of Markets.
Citi's Markets and Securities Services business provides world-class financial products and services as diverse as the needs of the thousands of corporations, institutions, governments and investors that Citi serves. The breadth, depth and strength of Citi's sales and trading, distribution and research capabilities span a broad range of asset classes, currencies, sectors and products, including equities, commodities, credit, futures, foreign exchange (FX), emerging markets, G10 rates, municipals, prime finance and securitized markets. Citi offers securities lending in 74 markets globally
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
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