7IM: stock lending 'a murky world'

Seven Investment Management’s Peter Sleep says exchange-traded funds can look expensive compared to futures or tracking funds while stock-lending practices are opaque, but he believes disclosure requirements generally surpass other areas of the investment management industry.

Financial intermediary Seven Investment Management (7IM) runs a number of portfolios that use exchange-traded funds (ETFs) both as a core holding and as a tactical tool. The UK-based company has been utilising ETFs since they first arrived in Europe around 10 years ago, and Peter Sleep, senior portfolio manager at 7IM, has been using them since he joined the firm six years ago. 7IM’s core strategic asset allocation is put together with Ibbotson, a third-party firm of consultants, using long-term