Securities Lending

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Program Overview

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At J.P. Morgan, we operate under a “clients first” approach that is supported by 10 guiding principles which we believe are inherent to a prudent securities lending program. These guiding principles include:

Highly Flexible Program Structures
- Ability to design a securities lending program to meet client specific risk/return requirements along with the option to choose from various lending platforms, to enact restrictions or set explicit program parameters
Well Defined and Transparent Cash Collateral Investment Guidelines
- Investment guidelines that are clear, precise and approved by the client
- Access to customized separate accounts for the investment of the cash collateral
High Touch Relationship Consulting
- Dedicated securities lending professionals that utilize a consultative approach
- Assess any new revenue opportunities and areas for improvement
- Provide market color with respect to lendable securities supply and demand dynamics
Consistent and Frequent Communications
- Present webinars, newsletters, and performance reviews
- Provide on-going correspondence on issues impacting the securities lending industry
- Offer insight and perspective with regard to industry trends and issues
Comprehensive Indemnification Packages
- Covers borrower default, overnight market risk, fails on the return of loaned securities and entitlements to securities on loan all supported by a strong balance sheet and significant financial resources
Risk Controls and Segregation of Duties
- Independent review of borrowers and cash collateral investments
- Rigorous selection process that is conducted on a continuous basis
Access to Detailed and Flexible Reporting
- Wide range of reporting and monitoring tools
- Full customization capabilities
Program Transparency
- Allow for complete understanding of the securities lending program’s philosophy, approach and processes
- Ability to enter or exit the securities lending program upon request
Industry Standard Securities Lending Agreements
- Agreed upon legal document covering all aspects of the client’s securities lending program
Commitment to Business
- Consistent investment to expand and improve program structures, capabilities and increase market opportunities

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