Asset manager case study: Impulse

Summary

An asset manager wanted to transform their approach to lending securities.

Migration to a custody-agnostic solution that puts the asset manager in control.

The asset manager chose Sharegain’s fully automated solution, which stood up to the test of COVID-19.

In The Matrix, Morpheus famously offers Neo a choice: take the red pill or the blue. Neo makes his decision in less than 20 seconds. But in those 20 seconds he opens a completely new world.

It’s rare that we face decisions as monumental as Neo’s. But that choice between quiet complacency and profound change is one we all have to make.

In capital markets, the status quo rules. It’s opaque. There’s no sense of control. Until now.

A Sharegain client, an asset manager, has been lending securities for some time through one of their custodian banks. However, the program is a black box, arguably by design.

The client received monthly fees and reports, but an absence of control and visibility meant that the client could not do it’s job and actively manage its lending program with a view to enhancing their returns. 

Our client knows what they’d rather have.

They wanted one consolidated securities lending
solution that is custody-agnostic, rather than
a different program with each custodian.

They wanted one consolidated securities lending solution that was custody-agnostic, rather than a different program with each custodian.   

They also did not want to be in the passenger seat. They wanted to decide how and when their securities are lent.

They were also very clear: they could not dedicate budget or staff to their securities lending, thereby ruling out building a securities lending desk themselves.

With a choice between control and convenience, they’ve (grudgingly) chose the latter.

We came to them with an alternative: Why not have both?

They opted-in to our fully automated solution over their existing custodian program.

Designed to be close to turn-key, implementation required minimal involvement from their IT team.

Now the client has both a high tech and high touch solution. End-to-end automation means that the client does not need to be involved every day but is fully enabled to be as hands on as they wish. The Sharegain solution runs in the background, providing additional revenue potential within the risk parameters set by the client. No new overheads and full control.

Then, COVID-19 struck.

Unprecedented volatility, capital required to adjust to the new normal of working from home, made it tough just to maintain business as usual. They were grateful their securities lending program, powered by Sharegain, was the one thing they didn’t need to take care of. 

Technology and a fresh look at securities lending won the day: a fintech gave a service that provided greater transparency and control that that provided by a global custodian bank. 

Neo’s choice was a stark one, either accept the limitations of the world he’s always known, or challenge them.

Ultimately, he not only understood the Matrix, it became his to control. 

Asset managers now face a similar decision. Do they take the red pill and accept without question the limitations they’ve always faced, or challenge what they think is possible – and win through greater control, married to the ability to manage risk.

Realise the true potential of your securities lending

The Sharegain approach:

Smart. Automated. Simple.

Seize every opportunity

To earn more from assets you already own

Fully automate your lending

And remove the need for manual workarounds

No dependencies on legacy systems

And geography/custody-agnostic

How it works

Securities Lending as a Service (SLaaS)

Unlock all your funds and client accounts, regardless of custodian or jurisdiction, via a centralized and fully automated securities lending solution.

Asset Manager

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