Fri, Oct 23, 2026
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Towers Watson claims smart beta reduces equity dependence

Wednesday, March 27, 2013

Beverly Chandler, Opalesque London: The latest issue of Towers Watson’s annual Global Investment Matters publication contains an article claiming that smart beta is an ideal way for investors to access the best aspects of market diversity at modest cost and governance.

The company suggests that diversity through smart beta can help to manage risk, while implementation of the ideas behind it allows investors to exploit competitive advantages. In addition, it asserts that many institutional investors will have to hold risky assets for longer than expected in order to generate required returns and that smart beta would be a good way to reduce dependency on equities while doing this.

Phil Tindall, senior investment consultant at Towers Watson, said: "Investors know they need to make their assets work harder but some are probably unwilling players in the risk-taking business, especially if it is for significantly longer than they had planned. However, the alternatives are similarly unattractive: safe assets now very expensive due to excess demand and financial repression. While being in the risk business for the long haul may be the unfortunate reality of current investment life, the arguments for risk mitigation with diversity through smart beta provides some hope; perhaps more so over the longer than the shorter term." ......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Nvidia extraordinary growth and the challenge of sustaining demanding valuations over time[more]

    Antonio Di Giacomo, Senior Market Analyst at XS.com, writes: Nvidia has established itself as one of the most extraordinary growth companies in the global technology sector. Over the past two fiscal years, its revenues have risen from levels close to $60 billion annually to well above $120 billi

  2. Opalesque Exclusive: Private Markets Evergreen Funds - An Insider's View[more]

    Matthias Knab, Opalesque for New Managers: Private Markets Evergreen Funds: What Investors Need to Know Before They Dive In The democratization of private markets is well underway. Structural barriers t

  3. KRX chief courts CalPERS for bigger bet on Korea[more]

    Korea Exchange Chairman and CEO Jeong Eun-bo held talks with California Public Employees' Retirement System, or CalPERS, to promote greater investment in South Korea's capital markets, the bourse operator announced Wednesday. Jeong met with CalPERS Chief Investment Officer Stephen Gilmore.

  4. 755 Unicorns, $8 Trillion: Fifth Era maps the autonomous digital economy[more]

    Matthias Knab, Opalesque for New Managers: Fifth Era Partners, a specialized asset manager focused on the convergence of Internet, AI/Agentic and Blockchain technologies, has released the findings of its 13th Bia

  5. Opalesque Exclusive: Governance, Scale, and Boutique Resilience in a Consolidating Hedge Fund Industry[more]

    Matthias Knab, Opalesque for New Managers: The hedge fund industry has undergone significant consolidation in recent years, with capital increasingly concentrated among large multi-strategy platforms. Yet boutique m