PRODUCTS IN FOCUS
ABOUT BLACKROCK
FEATURED INSIGHTS
RESOURCES
*As at 31 January 2021. At any point in time the Fund expects to hold multiple total return swaps sourced from various providers each of which may carry a different swap fee. The Weighted Average Swap Fee represents the average swap fee in bps weighted by the notional amount of each swap as at the date indicated. The Weighted Average Swap Fee represents the average swap fee in bps weighted by the notional amount of each swap as at the date indicated, and therefore may fluctuate over time.
Securities lending is an established and well regulated activity in the investment management industry. It involves the transfer of securities (such as shares or bonds) from a Lender (in this case, the iShares fund) to a third-party (the Borrower). The Borrower will give the Lender collateral (the Borrower’s pledge) in the form of shares, bonds or cash, and will also pay the Lender a fee. This fee provides additional income for the fund and thus can help to reduce the total cost of ownership of an ETF.
At BlackRock, securities lending is a core investment management function with dedicated trading, research and technology capabilities. The lending programme is designed to deliver superior absolute returns to clients, whilst maintaining a low risk profile. Funds participating in securities lending retain 62.5% of the income, while BlackRock receives 37.5% of the income and covers all the operational costs resulting from securities lending transactions.
From 31-Dec-2019 To 31-Dec-2020 |
From 31-Dec-2018 To 31-Dec-2019 |
From 31-Dec-2017 To 31-Dec-2018 |
From 31-Dec-2016 To 31-Dec-2017 |
From 31-Dec-2015 To 31-Dec-2016 |
|
---|---|---|---|---|---|
Securities Lending Return (%) | 0.00 | 0.02 | 0.04 | - | - |
Average on-loan (% of AUM) | 5.73 | 23.30 | 32.65 | - | - |
Maximum on-loan (% of AUM) | 30.67 | 37.42 | 46.74 | - | - |
Collateralisation (% of Loan) | 109.02 | 109.48 | 111.42 | - | - |
Name | Ticker | ISIN | SEDOL | Exchange | Country | Asset Class | Weight % |
---|
The below table shows the Loan/Collateral Combinations and Collateral Levels for our European Lending funds.
Collateral Types | ||||
---|---|---|---|---|
Loan Type | Equities | Government, Supranational and Agency Bonds | Cash (Not for Reinvestment) | |
Equities | 105%-112% | 105%-106% | 105%-108% | |
Government Bonds | 110%-112% | 102.5%-106% | 102.5%-105% | |
Corporate Bonds | 110%-112% | 104%-106% | 103.5%-105% |
Collateral parameters depend on the collateral and the loan combination, and the over collateralisation level may range from 102.5% to 112%. In this context, “Over Collateralisation” means that the aggregate market value of collateral
taken will exceed the overall on-loan value. Collateral parameters are reviewed on an ongoing bases and are subject to change.
With securities lending there is a risk of loss should the borrower default before the securities are returned, and due to market movements, the value of collateral held has fallen and/or the value of the securities on loan has risen.
Exchange | Ticker | Currency | Listing Date | SEDOL | Bloomberg Ticker | RIC | Bloomberg INAV | Reuters INAV | ISIN | WKN | Valoren | Common Code (EOC) | ISIN of INAV |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
London Stock Exchange | ICOM | USD | Jul 20, 2017 | BDFL4P1 | ICOM | ICOM.L | - | - | IE00BDFL4P12 | - | 36082553 | - | - |
Berne Stock Exchange | ICOM | USD | Feb 2, 2021 | BMT9TK4 | ICOM BW | ICOM.BN | - | - | IE00BDFL4P12 | A2DK6R | 36082553 | - | - |
Xetra | SXRS | EUR | Apr 25, 2018 | BD1MLL3 | SXRS GY | SXRS.DE | - | - | IE00BDFL4P12 | A2DK6R | 36082553 | - | - |
London Stock Exchange | COMM | GBP | Jul 20, 2017 | BDFLHQ3 | COMM | COMM.L | - | - | IE00BDFL4P12 | - | - | - | - |
Bolsa Mexicana De Valores | ICOM | MXN | Jun 11, 2019 | - | ICOM LN | ICOM.MX | - | - | IE00BDFL4P12 | - | - | - | - |
SIX Swiss Exchange | ICOM | USD | Oct 25, 2017 | - | ICOM | ICOM.S | - | - | IE00BDFL4P12 | - | - | - | - |