eSecLending has auctioned $2.5 trillion in assets since inception. The milestone follows two successful auctions in the fourth quarter, which were amongst the largest revenue generating auctions in the companys history.
eSecLending originated in the late 1980s with the view that securities lending is an investment management and trading discipline, which provides best execution for its clients, rather than an operational function. Introduced in 2000, the companys auction concept has been adopted by institutional investors, including pension funds, asset managers and insurance companies.
Jerry May, portfolio manager for the Ohio Public Employees Retirement System (OhioPERS) stated, For OhioPERS, the eSecLending process provides pre and post execution benchmarking, allowing us to make better informed decisions regarding the optimal route to market for our portfolios. We have been very pleased with the transparency of the process and their ability to customize our lending program. We were particularly impressed with the results of our most recent auction which generated a material increase in intrinsic returns versus our 2010 auction result and market benchmarks.
Chris Poikonen, executive vice president at eSecLending stated: Over the last eleven years, the power of our process has been proven by the breadth of borrower participation and overall outperformance against market benchmarks. As the market leader in securities lending auctions, we ensure each program remains a bespoke experience for our clients incorporating over 30 markets, more than 40 borrowers and a variety of collateral options.
(JDC)