A row broke out this year when a pioneer in the sector warned that as smart beta funds grow in size, certain products could go ‘horribly wrong’. Funds Europe looks at what lay behind the controversy – and asks what safeguards there are for investors.
The problem with backing a smart beta factor – such as a low volatility fund, for example – is that the factor could become more expensive as it gains in popularity, eroding any advantages, say experts.
The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.
There is no doubt that Smart Beta ETFs are gaining traction in Europe. In June 2016, they reached €19.7 billion in Assets under Management, up 31% versus the end of 20151. In this article we look at what is driving the rise, and how investors could capitalise on it.
Smart beta has its roots in equity investment but is also making headway in fixed income. Some providers suggest it could even be better suited to capturing bond market factors. Funds Europe explains.
Manuela Sperandeo tells Funds Europe why the rationale for smart beta investing is as strong as ever and is here to stay.
Renowned economist Bill Sharpe said the term smart beta ‘makes him sick’. Even some of its practitioners are uncomfortable with it. Kit Klarenberg investigates why people cannot agree on the right way to name the vehicle.
It’s often asserted that multi-factor smart beta strategies can perform in all market conditions, but are such forecasts credible, or pure hot air? Kit Klarenberg investigates.
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Why fund admin tech is a key competitive advantage Cian Hyland, Strategic Client Relationship Director at Deep Pool Financial Solutions spoke to us about how technology enables efficient data management, reporting automation and secure data access. | Insights from State Street Cuan Coulter, Global Head of Asset Managers and Head of UK and Ireland at State Street, discusses how fund managers decide between the two cross-border fund domiciles, namely Ireland and Luxembourg, and why asset managers find managing data so difficult. |
Unlocking access to private markets Vincent Clause, who heads the global funds strategy at Euroclear and David Genn, CEO of Goji, sit down with Funds Europe to explain how technological innovation, bolstered by operational experience and global reach, can provide solutions that unlock access to private markets. | Sustainable investing in the DC world Claire Felgate, a specialist in UK defined contribution pension schemes at asset manager BlackRock, talks with Funds Europe editor Nick Fitzpatrick about how - and the pace at which - DC pension schemes are adapting to the requirements of sustainable investment. |
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Watch our webinar for a deep dive into the findings of the fresh-off-the-press EU Taxonomy 2023 Insights Report, based on Clarity AI's best-in-class coverage of EU Taxonomy reported data and CDP industry-leading environmental datasets.
In this webinar, we discuss tools for optimising fund data management and distribution, the role of global fund classifications and ratings, and how technology and automation enhance data integrity and insights.
