Congratulations to the Fidelity Agency Lending team on recently surpassing US$6.5 trillion in global assets. Where has the growth come from and how is this diversifying the client profile of your business?
Marney McCabe: Thank you, Carmella. It is a great growth story and a significant achievement we are all very proud of, but what is most compelling is how we have grown. Our focus has never been growth for growth鈥檚 sake; it has been more thoughtful, deliberate, and strategic. Our growth strategy is, and always has been, focused on adding attractive, accretive assets and client relationships that strengthen the overall lending programme and enhance opportunities for all participating clients. The expansion of our programme has been driven by an increasingly diverse mix of lenders across geographies, investment structures, and institutional segments. And while new client mandates have contributed to our growth, many existing clients have also chosen to deepen their relationship with Fidelity Agency Lending, which is a true reflection of the value they have experienced through our programme and platform.
Today, Fidelity Agency Lending is the largest third-party agent lender in the market by client assets, which allows us to provide significant advantages to our clients and their stakeholders. We are an important source of supply for borrowers given our clients鈥� asset size and our status as the largest lender of special or in-demand securities; this drives demand to our platform, improves market relevance, and helps create additional revenue opportunities for clients across the programme.
Our approach translates into meaningful results for our clients. According to S&P Global data, over the past three years (ending as of 31 July 2026), Fidelity Agency Lending clients outperformed their peers by at least 25 per cent on a total return basis. We believe this reflects the benefits of our scale, market position, and disciplined growth strategy, all of which remain central to how we continue to evolve our securities lending business.
As we look to the future, we will remain disciplined about our growth strategy. Every onboarding decision will be evaluated through the lens of maintaining a high-quality, balanced programme that benefits all participants. We will continue our focus and investments on building a securities lending platform that combines scale with performance, ensuring that growth enhances the value proposition rather than diluting it.
With this growth, your relationship management team has surely evolved to service a diverse set of clients. Can you tell us more about the Fidelity Agency Lending service model?
McCabe: The breadth of our platform and the experience of our team provide a unique perspective on market dynamics across a diverse range of asset types, markets, and client segments. A combination of technology-enabled insights and experienced relationship management allows us to scale efficiently while maintaining the high-touch service model our clients value. Our consultative approach has consistently helped clients enhance returns, improve operational efficiency, and maintain effective risk oversight.
Technology plays a critical role in enabling this model by providing automated solutions and critical data insights that our clients rely on. Our significant investments in automation, analytics, and risk management allow us to scale efficiently while maintaining a high-touch client experience. More importantly, data provides our clients with actionable insights that help them to make informed decisions and understand the value their lending programme is generating.
As our business has grown, our service model has evolved well beyond traditional relationship management that is typically focused on managing day-to-day operations and client service. Our goal is to be consultative. We view ourselves as a strategic partner focused on helping clients maximise the value of their participation in our lending programme, in addition to supporting the daily operational requirements and risk management that is essential for programme success and oversight.
Our approach is based on an intimate understanding of each client, their securities lending programme strategy and goals, programme parameters, market insights, and growth opportunities. It starts during the onboarding process and extends throughout the life of the relationship. We believe that our success proves that this consultative approach to managing the relationship is beneficial to improving client returns and reducing operational risk.
Importantly, our approach is not one-size-fits-all. Every client has unique return goals, risk tolerances, governance requirements, and operational considerations. We work closely with each client to build a custom programme that reflects those priorities while allowing them to benefit from participation in one of the industry鈥檚 largest and most diverse lending platforms.
What differentiates Fidelity Agency Lending is the combination of scale, expertise, and customisation. The breadth of our platform and experience of our team provides a unique perspective on market dynamics, borrower demand, and revenue opportunities across a diverse range of asset types and client segments. Our relationship managers leverage those insights to help clients optimise their programmes and align securities lending with their broader investment objectives.
Ultimately, the goal of our service model is simple: to ensure clients fully benefit from the market insights, borrower demand, and breadth of opportunities our platform creates. As we continue to grow, we remain focused on delivering client experiences that combine strategic partnership, operational excellence, and strong long-term performance outcomes.
As a leader and manager at Fidelity, can you provide some insight into how a client-focused approach drives service excellence?
McCabe: Many of our securities lending clients and borrowers engage with Fidelity across multiple parts of the enterprise, making a high-quality, consistent experience essential. As a result, we focus on delivering the full breadth of Fidelity鈥檚 institutional capabilities while providing coordinated support and a strategic partnership.
Additionally, as Fidelity Agency Lending has grown, we have continued to invest in the people, technology, and capabilities that help clients solve important business challenges and identify new opportunities. Rather than simply delivering a product or service, we deliberately place our clients鈥� needs and goals at the centre of our platform, investment decisions, and strategic planning. Whether it is enhancing portfolio returns through securities lending or leveraging technology to improve efficiency and transparency, I feel fortunate to be part of a firm whose goal is to deliver measurable value to clients while providing the scale, expertise, and service they have come to expect from Fidelity.
Jon, what new trading opportunities have emerged with the new types of clients that are part of the Fidelity Agency Lending programme?
Jon Whiting: As our programme has grown, we have expanded the breadth and diversity of assets available on the platform, creating new opportunities for borrowers and beneficial owners alike. The most meaningful benefit is not simply more assets, but a more complementary mix of assets that strengthens our ability to connect borrower demand with lending opportunities across regions and market environments.
That broader opportunity set allows us to be more precise in matching supply with demand, which can improve utilisation, increase the duration of loans, and ultimately support stronger outcomes for clients. The result is a stronger marketplace where a broader range of borrower demand can be matched with a more diverse inventory of assets, creating additional opportunities for beneficial owners. Growth is most valuable when it enhances outcomes for all participants, and that has been our focus throughout this expansion.
With the integration of international clients on your platform, what are some of those non-US trends that are creating revenue opportunity? Asia has performed well against US equity markets this year, what are your thoughts on this outperformance?
Whiting: One of the most compelling trends today is the growing diversification of global opportunity sets. Increasingly, some of the most attractive investment returns and securities lending opportunities are emerging outside the US.
As global capital flows become more diversified, we are seeing borrower demand emerge from a broader range of markets, sectors, and event-driven opportunities.
In Asia specifically, stronger market performance has translated into increased investor activity and higher demand around certain securities. More broadly, markets such as Korea, Taiwan, and other key innovation hubs continue to attract significant investor attention given their role in global technology and supply chains. These trends can create attractive lending opportunities for beneficial owners.
What is most important is that a globally diversified lending programme allows clients to participate in opportunities wherever they emerge. As our international client base and asset mix have expanded, we have strengthened our ability to connect borrower demand with unique sources of supply across regions, helping clients benefit from a broader and more resilient opportunity set.
In the short term, how is the market landscape changing and what should agent lenders be monitoring as they assess revenue opportunity for their clients?
Whiting: The market continues to evolve as regulations, market structure, and capital constraints influence borrower behaviour around the world. For agent lenders, the most important thing to monitor is how these changes affect the balance between supply and demand, as that is often where new lending opportunities emerge.
We are also seeing continued demand for capital-efficient financing solutions, which can create attractive opportunities for beneficial owners. At the same time, the transition to T+1 settlement in Europe and parts of Asia will place an even greater premium on operational excellence, inventory management, and communication across market participants.
We believe Fidelity Agency Lending is particularly well positioned for a shorter settlement cycle for several reasons. Our investments in technology and automation, combined with the breadth of inventory available on our platform and a strong operational foundation, position us well for one-day settlement. Having successfully navigated the US transition to T+1, we have the experience, processes, and infrastructure to help clients adapt as Europe and Asia move toward the October 2027 implementation. We are focused on ensuring clients are prepared to take advantage of opportunities while minimising disruption as other markets make the move towards T+1 settlement.
Ultimately, the firms best positioned to create value for clients will be those that can leverage scale, technology, and operational expertise to adapt quickly as market conditions evolve.
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