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Why Windle Wealth is moving $150m to Altruist

Learn more about DJ Windle's decision to take his business from TDA to Altruist.

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Another way for
clients to earn.

Altruist’s Fully Paid Lending program provides clients the opportunity to earn income on eligible stock positions they already own.

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What is Fully
Paid Lending?

Fully Paid Lending (FPL), also known as Fully Paid Securities Lending (FPSL), is a common lending practice whereby individuals can receive passive income by allowing their broker – in this case, Altruist Financial LLC (“Altruist”)– to lend out stocks they have fully bought and paid for (as opposed to those purchased on margin).

Even with positions on loan, clients retain full ownership and are free to sell anytime.

Free to sell

While positions are on loan, clients earn supplemental income with interest accruing daily.

accrue interest daily

To protect client assets, loans are collateralized at 102% of market value.

Enrollment, lending, and payouts are all facilitated by Altruist, making the process easy for clients and advisors.

How does Fully Paid
Lending work?

  1. Identify lendable positions: Altruist’s Securities Lending team monitors client portfolios to identify lendable positions.
  2. Assess demand and generate loans: If there is demand for any of your clients’ positions, the team will borrow from their account and lend all or a portion of the available position to an external broker dealer.
  3. Distribute income: Once the positions are on loan, clients will earn income based on the loan rate. The more demand for the position, the more potential income they will receive.

How could Fully Paid Lending
benefit your clients?

Let’s calculate the hypothetical monthly income of a client with 10,000 shares on loan with a market price of $10 – assuming all shares are lent and your client's lending rate is 8.25%. Note: based on eligibility, those 10,000 shares likely represent only a portion of the client's total portfolio.

Client's hypothetical monthly income

Frequently asked questions

Enrollment and Positions

Payouts and Taxes

Treatment and Security

  • Only certain securities and certain account types are eligible to participate. At the individual security level, eligibility can vary daily and is influenced by numerous factors such as demand and market conditions.
  • There is no preferential treatment provided for any account. Each loan is on a pro-rata basis; each Altruist account that holds a position in a security on loan receives a pro-rata allocation to be fair and equitable to all eligible Altruist accounts.

  • When securities are on loan, clients lose their ability to exercise voting rights.

  • Securities on loan are not covered by SIPC, but each loan is fully collateralized with cash or US treasuries. The collateral is sent by Altruist to a secure bank account and collateral management is administered by a third-party company. The collateral is equal to the market value of all shares on loan. If Altruist were to default on its obligations as defined in the MSLA, you would have the right to withdraw the collateral from the custodian bank.

  • All investing involves some amount of risk, however, Altruist receives cash collateral for each loan, which is secured daily until the shares are returned. Shares on loan do not retain voting rights, are not eligible for dividend payments or Securities Investor Protection Corporation (SIPC) coverage. Company default risk also applies. Additionally, we recommend consulting a tax professional regarding any income earned through the program. Further details can be found in the Fully Paid Stock Lending Risk Disclosures, available at altruist.com/legal.

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