Janus Henderson Investors advocate for institutional investors to enhance their passive equity allocations by leveraging stock lending value chains. Traditionally, passive portfolios lend stocks to investment banks, who then profit by re-lending these for short-selling or hedging purposes.

“Investors who allocate to passives will be familiar and comfortable with the use of basic stock lending. However, it is the next step, the subsequent lending chain, where the process gets interesting,” said David Elms, Head of Diversified Alternatives at Janus Henderson.

The recent insight explores how investors can extend the value chain to generate additional returns.

Read the full insight here.