Regarding income and expenses from securities lending activities, how should they be reported?

Income and expenses from securities lending activities should be reported as a separate component of total net investment income. This is because securities lending is a distinct activity that involves lending securities to other parties, usually for a fee, which can generate additional income. Reporting it separately allows for better transparency and clarity in financial statements, as it highlights the specific income generated from this activity, separate from other investment income. This differentiation aids stakeholders in understanding the various sources of revenue and the overall performance of the investment portfolio. It also ensures compliance with accounting standards that typically recommend the presentation of various income sources distinctly when they arise from different activities within the investment management domain.