Legal & General UCITS ETF to launch securities lending program

Published 29/08/2025, 12:02
© Reuters.

DUBLIN - Legal & General UCITS ETF Plc announced Friday that it will implement a securities lending program for select sub-funds beginning in the fourth quarter of 2025.

The Bank of New York Mellon, London Branch will serve as the securities lending agent, while Legal & General Investment Management Limited will oversee and manage the program, according to a shareholder notice issued to the registered holder of shares.

Although the company’s prospectus already permits securities lending activities, this capability has not been utilized until now. The board of directors has approved the activation of this program, which will allow the funds to potentially generate additional income by lending securities to borrowers.

Under the revenue-sharing arrangement, 80% of securities lending revenue will be retained by the relevant sub-funds, while the securities lending agent and investment manager will each receive 10%. The company stated that securities lending activity is expected to range between 0% and 20% of each sub-fund’s net asset value, with a maximum limit of 45%.

The company has made updated sub-fund supplements and an addendum to the prospectus available through its website and at the offices of the manager and relevant paying agents in countries where the sub-funds are registered for public distribution.

The announcement was made via a shareholder notice to the Bank of New York Mellon (Depository) Nominees Limited, the registered shareholder of the funds. A copy of the notification has been submitted to the National Storage Mechanism and will be available for inspection on the Financial Conduct Authority’s data portal.

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