Smart beta adoption increases

The percentage of asset owners reporting a smart beta index allocation has risen 10% over the last year to a new peak of 46%, according to an industry survey.

The annual FTSE Russell Global Institutional Smart Beta report, published today, also found that multi-factor index-based strategies have become the top smart beta equity strategy used.

In addition, the report found that 41% of asset owners that were either evaluating or using strategies based on smart beta indices anticipated applying environmental, social and governance (ESG) considerations.

Peter Gunthorp, FTSE Russell’s research director, said: “Our fourth annual smart beta survey demonstrates asset owners have readily adopted smart beta indexes and continue to evolve their strategies based on these indexes.

“The results indicate that risk reduction, return enhancement and improving diversification remain the primary objectives for use of smart beta.”

The survey concluded that there has been increasing global growth and adoption of smart beta over the past three years with adoption in Europe (60% of asset owners) greater than in North America and Asia Pacific.

The survey of 194 global asset owners was conducted in January and February with participants from North America (43%), Europe (32%), Asia Pacific (19%) and other regions (5%).

©2017 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