BNY Mellon wins sec lending mandate for $11 billion US pension fund

BNY Mellon will provide securities lending service to Kentucky Retirement Systems having acted as its global custodian since 2013.
By Paul Walsh
BNY Mellon has secured a mandate with Kentucky Retirement Systems (KRS) to provide securities lending services to the $11 billion public retirement fund.

The agreement expands on the existing relationship between the two entities with BNY Mellon acting as KRS’ global custodian since 2013.

KRS revealed last December it was planning to move its securities lending programme from Deutsche Bank to BNY Mellon.

In a statement, BNY Mellon states the mandate increases its position as the world’s largest securities lending agent.

BNY Mellon revealed securities lending revenue of $49 million in Q1 2017.

“KRS is delighted to have partnered with BNY Mellon as provider for all our securities lending needs,” said J. Richard Robben, interim chief investment officer at KRS.

“The depth and breadth of their platform, coupled with their financial strength, make them the perfect partner for our pension funds.”

The move is the latest mandate for the world’s largest custodian following its collaboration with One Investment Group at the end of June to offer global custody services to Australian fund managers, trustees and responsible entities.

“We are very appreciative of the confidence that KRS has shown in expanding its relationship with BNY Mellon through our ability to customise a securities finance solution that meets both their performance and risk objectives,” said Bill Kelly, head of securities lending agent programme for BNY Mellon.