UniSuper has instructed its custodian, BNP Paribas Securities Services, to suspend its stock lending program effective immediately, as the market is “gripped by panic”.
UniSuper announced that it instructed BNP Paribas to recall all shares currently out on loan, without exception.
The industry super fund’s chief investment officer, John Pearce, said: “In a normally functioning market we’re comfortable lending our shares as we genuinely believe that it adds to market efficiency”.
“The ability to short-sell adds to liquidity and price discovery in an orderly market. However, we are now in a market gripped by panic and we believe that restricting the ability to short-sell is in the best interest of promoting a more orderly market,” Pearce said.
“We are only one fund and the efficacy of our actions will depend on how many other funds follow a similar path. Of course, we are not privy to the thinking of other funds who lend their stock.”
While institutional investors, including super funds, unanimously acknowledge the energy transition as a significant challenge, their perspectives on the extent of their involvement in addressing the substantial capital requirements vary widely.
Despite a period of increased volatility, several considerations suggest that the bull market will remain intact and the trend in shares will remain up, an economist has suggested.
HESTA has slammed Woodside’s climate transition action plan, pointing to “significant” gaps.
All merger proposals will have to be approved by the consumer watchdog under the sweeping merger reforms announced by the government on Wednesday.
Any idea when UniSuper will rejoin securities lending?
Add new comment