Wed, Oct 1, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

European 'smart beta’ allocations to reach $500.2bn within five years - Part 1

Monday, May 26, 2014

Komfie Manalo, Opalesque Asia:

'Smart beta’ is another buzzword to hit the asset management industry over the past decades. Industry experts predicted allocations into European smart beta could reach $500.2bn (GBP 297bn) within the next five years from its current size of $131.4bn (GBP 78bn), said data tracker Spence Johnson. Indeed, one U.S. firm closely linked with smart beta, Research Affiliates, currently has some $12bn in assets using its fundamental benchmarks even though it is less than 10 years old.

A report by Financial News quoted Research Affiliates chief executive Robert Arnott as saying, "Two of the three largest institutional investors in each region are now doing a pilot program of at least a billion in fundamental indexing."

Smart beta allows investors to take an accepted index such as the FTSE 100 and then re-rank the companies in it by one or several sets of rules. In effect, smart beta fund managers rejig the benchmark index, change the weight of its constituents to produce higher return than the index would have produced in its original format.

But the rise in smart beta is a bane to other investments. A study commissioned by the State Street Global Advisers showed that assets held in "actively managed funds" in the UK dropped to 53.6% in 2013 from 66.8% in 2009.

JP Morgan Asset Management......................

To view our full article Click here

Banner

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Legal - Court throws out lawsuits related to Fannie Mae, Freddie Mac profits, Insider case by SEC is a step removed from Herbalife itself, SEC grants Citigroup waivers, easing hedge-fund curbs[more]

    Court throws out lawsuits related to Fannie Mae, Freddie Mac profits From WSJ.com: A group of Wall Street investors on Tuesday suffered a blow in their attempts to sue the federal government over their treatment of the shareholders of mortgage finance giants Fannie Mae and Freddie Mac af

  2. Launches - Goldman Sachs Asset Management launches GS Long Short Fund, Western & Southern launching international hedge fund, Lansdowne Partners plans energy hedge fund, RBC Global Asset Management launches new RBC Funds (Lux) - Asia Ex-Japan Fund, PVE Capital latest credit strategy to launch on the Sciens managed account platform[more]

    Goldman Sachs Asset Management launches GS Long Short Fund From Marketwatch.com: Goldman Sachs Asset Management has announced the launch of the Goldman Sachs Long Short Fund, which pursues high conviction investment ideas in global equity markets through a fundamental, bottom-up approach

  3. CalPERS’ move might alter hedge fund fees for good[more]

    Benedicte Gravrand, Opalesque Geneva: When CalPERS, the California Public Employees’ Retirement System, announced on September 15th that it was unwinding its hedge-fund portfolio, it was seen by many as is a significant blow to the sector’s appeal. The Fund is

  4. Opalesque Exclusive: Institutions eye private credit over traditional fixed income[more]

    Bailey McCann, Opalesque New York: Investing in private insurance, realty tax receivables, or investment-grade short-term accounts receivable may not spring to mind as a means of mitigating risk in a portfolio, but one firm, New York-based BroadRiver Asset Management is out to change all that. Th

  5. Short-term trading quant fund beats S&P since '09[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A relatively new multi-strategy, market-neutral quantitative hedge fund has managed to outperform the S&P500 and the HFRX Global since 2009. New Jersey-ba