Securities lending is an investment strategy employed to generate incremental yield from existing assets, thus increasing overall portfolio performance. The small but consistent returns generated are seen by many investors as a good way to offset custody and investment management fees. Most importantly, our expertise in risk assessment and asset-liability management provide for an optimal risk/return balance.

AIG Investments’ securities lending business is one of the largest non-custodian operations in the financial industry, with trading performed through our New York and London offices. With total assets exceeding US $180 billion, securities lending is an established practice for over 40 AIG companies and almost 25 mutual funds and pension accounts. Through the strength of the AIG companies, our clients and investment professionals have access to an impressive global network of industry leading borrowers. Coupled with our global team of experienced securities lending professionals - the management team has been in place since 1997 - we have established our product as a low risk, yield enhancement strategy.

At AIG Investments, securities lending is an investment discipline rather than a custodial process. We believe that the ability to lend securities on behalf of a client is an integral component of a full service investment management organization. We have established a seamless integration between the portfolio management and securities lending teams, a convergence that securities lending clients of custodian-only firms do not experience. Every aspect of the program, including credit evaluation, regulatory oversight, compliance and credit monitoring procedures, billing, corporate and financial accounting, client reporting, management of the contracts, operational support and trading, are performed daily by professional staff under procedures that were developed to satisfy the demands of a top-tier insurance company.