Mon, Aug 29, 2016
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

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. Strategies - The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I, Hedge funds get more pushback on terms as enthusiasm for strategy wanes[more]

    The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I From IBTImes.co.uk: To illustrate a strategic gap common to today's portfolio managers, George Sokoloff, PhD, founder and CIO at Carmot Capital, proposes an interesting thought experiment – a breakdown of

  2. Institutional investors - Investors set to increase allocation to private debt, With investment income key, Richmond retirement system faces funding challenges[more]

    Investors set to increase allocation to private debt Investors are set to increase their allocation to private debt, with 60% revealing they believe the private debt market will grow over the next 12 months, according to a new study by Elian, a leading funds services provider. 41%

  3. Investing - Hedge funds snap up banks, unload Apple, Some of hedge funds' favorite stocks are finally starting to beat the market, Einhorn's Greenlight shifts positions, Treasury yield climbs to two-month high as Fischer joins hawks, 9 stocks smart investors put their money in last quarter[more]

    Hedge funds snap up banks, unload Apple From Barrons.com: Prominent hedge funds have a newfound love of big banks, and some have a distaste for shares of Apple, regulatory filings released last week show. The filings suggest that the funds have been pivoting their portfolios in recent mon

  4. Chesapeake energy seeks $1 billion loan to refinance debt[more]

    From Bloomberg.com: Chesapeake Energy Corp. is seeking a $1 billion loan as the company battered by cratering fuel prices and credit downgrades takes a step to address its $9 billion debt load. The natural gas producer hired Goldman Sachs Group Inc., Citigroup Inc. and Mitsubishi UFJ Financial Group

  5. Institutions - Nordic pension funds magnify focus on unlisted and direct investing, building up teams[more]

    From IPE.com: As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new