As I stated in the answer of 16 March 2009, Official Report, column 966W, stock lending is not allowed in the segregated funds of the Parliamentary Contributory Pension Fund (PCPF). The Trustees have no role in deciding the policy on stock lending in pooled funds used by the PCPF.
Stock lending by investment managers of pooled funds is intended to enhance the returns to their clients. Within a pooled fund no specific stocks are either owned by, or clearly attributable to, a single investor. Thus, the (PCPF) has a proportionate share in the value of the total stock within one or more equity-based funds.
At 31 December 2007 and 31 December 2008 the PCPF had pooled assets on loan to the value of some £31 million and £19 million, respectively, representing some 8 per cent. and 6 per cent. of the total value of the Fund on these dates.