Spanish asset management group GVC Gaesco is committed to creating a new source of securities lending revenue for its Luxembourg funds through a partnership with fintech company Sharegain.
Sharegain promises to provide access to the securities lending market for small and medium-sized asset managers, private banks, high net worth individuals and online brokers.
Securities lending is a common practice among European asset managers, but Spain is currently the only major European economy that limits securities lending on funds domiciled in its territory.
The Spanish regulatory regime prevents locally domiciled mutual funds from fully engaging in securities lending, creating a competitive disadvantage to offshore fund managers operating in Spain who are not bound by the same rules.
The issue has been raised repeatedly by various stakeholders over the past decade, but the lack of unified and coherent market pressure means policymakers have yet to feel the need to align Spain with the rest of Europe.
“We have always known that if we want to create value, we have to do things differently”, explains Jaume Puig, CEO and CIO of GVC Gaesco Gestión. “We are therefore constantly looking for solutions that give a better result for our investors, without compromising on control or transparency.
“Working with Sharegain fully aligns with this vision, a fintech solution that delivers real, quantifiable value to our customers and investors.”
Puig has already outlined plans to extend the partnership to GVC Gaesco’s Spanish funds so they can also benefit from loan proceeds.
Boaz Yaari, CEO of Sharegain, says: “We have seen a change among European asset managers. They are looking for a new approach to securities lending, one that puts them in the driver’s seat.
“We are proud to partner with GVC Gaesco and deliver greater value to their investors. Jaume and the team have all the qualities we value: cutting-edge leadership, a customer-centric mindset and a openness to the benefits that a fintech solution can bring.”
The partnership follows shortly after the announcement that Citi and Sharegain are collaborating to launch a unique automated SBL solution for wealth managers.
According to Mr. Yaari, it is the “first of its kind” fully automated securities lending solution for the bank’s wealth management clients.
