Yuanta Funds selects State Street for securities lending programme
15 September 2026 Taiwan
Image: pinglabel/stock.adobe.com
State Street Corporation has implemented a securities lending programme for Yuanta Funds, Taiwan-based exchange traded fund (ETF) issuer.
The programme allows overseas securities held within a Yuanta ETF to be lent through State Street鈥檚 global securities lending platform.
According to State Street, it is designed to provide the fund with an opportunity to generate additional portfolio income and help improve return potential for investors.
Not only does the programme mark the first time Yuanta has made overseas investments within one of its ETF products available for securities lending, it also represents State Street鈥檚 first securities lending mandate for a retail fund in Taiwan.
The launch comes as Taiwan鈥檚 ETF market continues to grow and as asset managers look for practical ways to improve fund efficiency, manage costs, and deliver more value to end-investors, says State Street.
William Han, head of Financing Solutions sales and client management for the Asia Pacific ex-Japan, ex-Australia region at State Street, says: 鈥淭his appointment is a milestone for our partnership with Yuanta and for the continued development of Taiwan鈥檚 asset management industry.
鈥淲e are proud to support Yuanta鈥檚 innovation as it lends overseas securities for the first time through our global borrower network.
鈥淏y leveraging the full breadth of our securities lending programme, clients have the potential to enhance fund returns, helping to strengthen the funds鈥� appeal to end-investors in a highly competitive market.鈥�
Under the programme, State Street serves as lending agent, facilitating the lending of overseas assets held by Yuanta鈥檚 ETF to approved institutional borrowers.
Loans are collateralised in accordance with the applicable programme requirements, and the ETF receives payments equivalent to applicable distributions on loaned securities.
Loaned securities may be recalled in accordance with the relevant securities lending arrangements, including where required to facilitate a sale.
The arrangement is designed to generate lending revenue that can help offset fund operating expenses and support overall fund performance.
Julian Liu, chairman at Yuanta Funds, comments: 鈥淏y partnering with State Street on securities lending for overseas assets, we are taking an important step to optimise portfolio returns. This first-of-its-kind initiative for Yuanta reflects our commitment to innovation and to delivering stronger outcomes for investors.鈥�
The mandate also underscores State Street鈥檚 focus on expanding its securities lending capabilities across Asia Pacific and supporting asset managers as they look for new ways to strengthen fund performance.
State Street鈥檚 securities lending platform is designed to help institutional investors, asset managers, and fund providers generate incremental portfolio income by lending securities to qualified borrowers through a disciplined risk management framework.
The programme allows overseas securities held within a Yuanta ETF to be lent through State Street鈥檚 global securities lending platform.
According to State Street, it is designed to provide the fund with an opportunity to generate additional portfolio income and help improve return potential for investors.
Not only does the programme mark the first time Yuanta has made overseas investments within one of its ETF products available for securities lending, it also represents State Street鈥檚 first securities lending mandate for a retail fund in Taiwan.
The launch comes as Taiwan鈥檚 ETF market continues to grow and as asset managers look for practical ways to improve fund efficiency, manage costs, and deliver more value to end-investors, says State Street.
William Han, head of Financing Solutions sales and client management for the Asia Pacific ex-Japan, ex-Australia region at State Street, says: 鈥淭his appointment is a milestone for our partnership with Yuanta and for the continued development of Taiwan鈥檚 asset management industry.
鈥淲e are proud to support Yuanta鈥檚 innovation as it lends overseas securities for the first time through our global borrower network.
鈥淏y leveraging the full breadth of our securities lending programme, clients have the potential to enhance fund returns, helping to strengthen the funds鈥� appeal to end-investors in a highly competitive market.鈥�
Under the programme, State Street serves as lending agent, facilitating the lending of overseas assets held by Yuanta鈥檚 ETF to approved institutional borrowers.
Loans are collateralised in accordance with the applicable programme requirements, and the ETF receives payments equivalent to applicable distributions on loaned securities.
Loaned securities may be recalled in accordance with the relevant securities lending arrangements, including where required to facilitate a sale.
The arrangement is designed to generate lending revenue that can help offset fund operating expenses and support overall fund performance.
Julian Liu, chairman at Yuanta Funds, comments: 鈥淏y partnering with State Street on securities lending for overseas assets, we are taking an important step to optimise portfolio returns. This first-of-its-kind initiative for Yuanta reflects our commitment to innovation and to delivering stronger outcomes for investors.鈥�
The mandate also underscores State Street鈥檚 focus on expanding its securities lending capabilities across Asia Pacific and supporting asset managers as they look for new ways to strengthen fund performance.
State Street鈥檚 securities lending platform is designed to help institutional investors, asset managers, and fund providers generate incremental portfolio income by lending securities to qualified borrowers through a disciplined risk management framework.
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