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With all that is happening in the media regarding margin lending and the concern over the way assets are held, the following announcements should ease any concerns members may have over the security and ownership of assets held in the 2020 DIRECTINVEST BLUECHIP20, administered by BlackRock's SMA. (Separately Managed Accounts)
BlackRock – Separately Managed Accounts
BlackRock would like to advise investors in the ML SMA that all assets held within the Service, are held in BlackRock’s name as the Responsible Entity, or by any custodian that BlackRock appoint on their behalf.
The assets, liabilities and cash holdings held in an investor’s Personal Portfolio (BlueChip20), are held separately on trust for them. Records of individual security holdings are retained by BlackRock within the Service.
If an investor invests in the BlueChip20 and utilises the optional margin lending service, BlackRock will record the interest of the margin lender against the individual’s account. The terms of the margin loan will be covered by the agreement between the investor and the margin lender. If an investor is in any doubt about these terms they should contact their margin lender (see announcement from Equity Margins Limited below).
It is important to note BlackRock does not lend any stocks in this Service, and that investments in the Service are not affected by other investors’ margin loans.
Equity Margins Limited
Equity Margins Limited is the designated lender for any BlueChip20 accounts that elect to include a margin loan. Equity Margins Limited operates on the basis that your securities are not available for stock lending by Equity Margins Limited.
Equity Margins Limited has certain rights to your securities, including the right to deal with those securities, if you fail to pay amounts owing to us under your margin lending terms or otherwise breach the margin lending terms, as set out in the mortgage terms.
However, these rights are designed to enable Equity Margins Limited to recover amounts owing to it, and do not permit Equity Margins Limited to deal with your securities for other purposes.
We hope that this communication may ease any concerns caused through recent publicity of other lending models. Please feel free to contact our office on 1800 352 021 if you have any questions. |
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