smart beta

Hedge Funds

Smart beta evolves

The name smart beta originates from Towers Watson and for Tim Unger head of advisory portfolio management at the firm, its key purpose and use by investors is to side step certain expensive fund management products. “It’s enabled investors to substantially reduce the costs of accessing strategies that were largely beta like in nature, but […]
Hedge Funds

Can investors rely on the persistence of smart beta factors?

Twenty years of data on behavioural trading anomalies is enough evidence to show that factor or smart beta strategies have a high probability of working, Northern Trust’s head of global equities told delegates at the Fiduciary Investors Symposium. Matt Peron, who looks after active, passive and smart beta portfolios for Northern Trust, was answering what […]
Hedge Funds

Low volatility on the rise

Superannuation funds will make a big shift into low-volatility smart-beta products over the next 12 months, according to Fraser Murray, head of equities at Frontier Advisors. Speaking at a packed Investment Management Consultant Association (IMCA) seminar in Sydney, Murray told how there had been little activity in this space until now, but this was about […]
Hedge Funds

Smart beta: is it worth it?

Most smart-beta offerings fall into the same trap as index strategies: blindly following a set of criteria even when the strategy is underperforming. Instead, beta harvesters should be more thoughtful, according to Tim Gardener, head of institutional client strategy at AXA Investment Managers, who also believes smart-beta strategies are overpriced. “In beta strategies, market cap […]
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