Italian closed pension fund ARCO has mandated State Street to provide securities lending services. The appointment follows guidelines outlined earlier this year from the Italian pension fund regulator, COVIP, which established the option of direct securities lending as an additional resource.
Massimo Malavasi, general manager of ARCO, said that partnering with State Street will give it the option of using direct securities lending as an additional solution meant to support the optimisation of the fund’s investment management activities. “Their security lending services will also enable ARCO to get returns, which could be partially used to cover current investment management control and advisory expenses, as well as support and develop the finance department of the pension fund,” he said.
Riccardo Lamanna, head of State Street in Italy said: “Our experience with servicing pension funds means we can offer an integrated platform, with the ability to add further services when required.”