Global smart beta implementation at all time high

Nearly 60% of global institutional investors have adopted smart beta strategies – an increase of 10% from last year, and the highest proportion ever seen in the industry.

European asset owners continued to lead the way with the highest rate of smart beta implementation at 65%.

Implementation rates increased across the globe, in Europe, North America, and the Asia-Pacific region, according to a survey by London Stock Exchange-owned FTSE Russell.

Nearly 80% of international asset owners “have implemented, are evaluating, or plan to evaluate a smart beta index-based strategy”.

“Risk reduction, return enhancement and improved diversification continue to drive smart beta adoption among institutional investors globally,” said Rolf Agather, managing director of research and innovation at the firm.

“We expect sustained growth in smart beta, especially when it comes to multi-factor combination strategies.”

Out of those surveyed, Europe also led on the application of environmental, social and governance considerations in smart beta strategies increasing from 55% last year to 77% in 2019.

The report found that multi-factor strategy usage was most popular among investors, increasing by 22% to 71% this year.

The survey involved 178 global asset owners – the majority of whom were located in North America (46%), followed by Europe (29%), and Asia-Pacific (19%).

©2019 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST