Howard/Miller adjusts fund鈥檚 lending programme
19 June 2017 New York
Image: Shutterstock
US investment manager Howard/Miller Investments has revised its investment policy for its high income equity fund to exempt its securities lending activities from its leverage limits to allow for a more flexible policy.
The firm, which manages $6.6 billion in assets, explained in a note to investors that securities lending and other financing activity, such as repo and swaps, currently fall under the 鈥榚ffective鈥� portion of the fund鈥檚 leverage strategy, as they have 鈥渉ave similar effects as leverage鈥�.
There is currently a 20 percent leverage limit on assets within the fund, but Howard/Miller has decided to exempt securities lending from this, to allow the fund 鈥渢o deploy a more flexible securities lending policy鈥�, according to a spokesperson.
鈥淎 securities lending programme, in our view, should benefit the fund and its shareholders by generating additional income.鈥�
The calculation of the 20 percent leverage limit on assets will no longer apply to securities lending transactions as of 15 August.
Miller/Howard focuses on income-producing equities, with an emphasis on high-quality stocks with high yield and strong dividend growth.
The firm, which manages $6.6 billion in assets, explained in a note to investors that securities lending and other financing activity, such as repo and swaps, currently fall under the 鈥榚ffective鈥� portion of the fund鈥檚 leverage strategy, as they have 鈥渉ave similar effects as leverage鈥�.
There is currently a 20 percent leverage limit on assets within the fund, but Howard/Miller has decided to exempt securities lending from this, to allow the fund 鈥渢o deploy a more flexible securities lending policy鈥�, according to a spokesperson.
鈥淎 securities lending programme, in our view, should benefit the fund and its shareholders by generating additional income.鈥�
The calculation of the 20 percent leverage limit on assets will no longer apply to securities lending transactions as of 15 August.
Miller/Howard focuses on income-producing equities, with an emphasis on high-quality stocks with high yield and strong dividend growth.
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