Securities Lending Programs

The third-party Agency Securities Lending business and Auction Services are conducted through Goldman Sachs Agency Lending, a division of The Goldman Sachs Trust Company, and in Europe through Goldman Sachs Agency Lending in London, a division of Goldman Sachs Europe. Clients in our Agency program grant us the authority to lend their securities on a fully collateralized basis to a client-approved list of broker dealers. In return, clients receive income based on the intrinsic value of the securities on loan. Our clients include corporate and public pension plans, endowments, foundations, mutual funds, insurance companies and investment management firms.

The five main differentiating points of our Agency Securities Lending program are: superior performance, flexibility, customer service, borrower management and operational transparency. We deliver lending returns that exceed the market averages by identifying and lending securities of high intrinsic value and maximizing the return on each loan. Our lending clients receive the benefit of highly automated custodial and borrower processing, a lending program designed to support various forms of collateral, as well as customized Web-based reporting and analytics. Goldman Sachs Agency Lending lends to a select group of credit worthy borrowers that represent the majority of end user demand, thus maximizing economic returns while minimizing risk. In our program, we emphasize the importance of operational transparency and seek to ensure that securities lending does not impact the investment process.

Goldman Sachs Agency Lending's significant technology infrastructure and borrower relationships uniquely position us to offer Auction Services and post auction administration to our clients. The major components of the Auction Services product include: defining auction parameters, conducting the auction process, performing auction analytics and recommendations, coordinating all legal documents, providing operational support during the life of the resultant contracts, administering subsequent auctions and providing ongoing program analytics, reporting and client service support.