Fidelity Investments has invited Curran to participate in its Fully Paid Lending Program, Fidelity’s branded securities lending service. Securities lending is the practice of lending stock shares, ETF (exchange traded fund) shares or other securities. The borrower pays a fee and interest to the lender in exchange for the shares. The owner remains free to sell the shares and at the going market price.
Fidelity may borrow securities from your account. In return the accountholder receives collateral held at a bank independent from Fidelity. In addition, one receives an interest rate-based lending fee based on the loan rate multiplied by the market value of the securities on loan. The lending fee accrues daily and is automatically credited on a monthly basis to your Fidelity account. The interest rates paid are based on the supply and demand of the individual securities in the securities-lending market and are subject to change based upon market conditions and borrowing demand.
For instance, a difficult security to borrow will earn a higher rate of interest than an easy to borrow listing. The duration of the loan is typically indefinite, and the loan may remain open until either the investor or Fidelity elects to close it. The existence of the loan does not restrict one from selling the securities at any time. The sale of the lent shares serves as a notice to terminate the loan.
How does the securities lending agreement affect my ownership of the securities while out on loan?
How can I monitor my securities on loan?
What assets are eligible for collateral?
What are the risks associated with lending securities?
Will I receive cash dividends while securities are on loan?
Curran’s Investment Committee has evaluated the program and feels strongly in recommending participation to our clients. Assessing Fidelity’s Fully Paid Lending Program, it is our view, the program offers a low-risk way to increase your account value by lending in demand securities. To participate is voluntary. If you are interested or have questions, please call your Wealth Manager to discuss.
Kevin T. Curran, Co-CEO & Chief Investment Officer
At Curran we value service over sales and believe quality service yields happy clients. Below is our 4-step process (the first three steps at no cost to you).
A short introductory call for us to get to know one other. During this call we will discuss your financial goals, concerns and hopes for the future.
In this meeting we will go over your current financial situation, take a deeper look at your goals, discuss your risk tolerances, and collect the data necessary to build a formal proposal.
Based on our data gathering session, our Private Wealth Managers will present you with a custom proposal tailored to your needs. We encourage individuals to take the time to evaluate this proposal.
If you are comfortable with the proposal and choose to invest with Curran, our team will be there every step of the way assisting in opening the recommended accounts and facilitating all necessary parts of your onboarding process.