Smart Beta 2014

Tennis ballsSmart beta funds will not work in all market cycles and some “batting” between the factors is necessary. David Waller finds that minimum volatility’s recent track record is a good example.

DominosThe most popular smart beta strategy of recent years has proved frustrating for investors after underperforming as volatility reduced and markets boomed, finds David Waller.

BackgammonSmart beta indices are in vogue, but how much money is actually invested in them? George Mitton reports.

In January 2014, Russell Investments conducted a survey of equity investment decision makers from almost 200 asset owners across North America, Europe and the Middle East to better understand perceptions of smart beta.

Funds Europe asks those in the know about the burning issues facing the industry, such as how will smart beta affect fund management and what are the risks?

Trottier and SamamaFor Amundi, there is no single solution to smart beta, and appreciating the diverse range of approaches is vital. This is what Amundi’s clients are doing, or planning to do.

Office workerFelix Goltz and Antoine Thabault assess the performance and implementation benefits of multi-factor allocations.

Francois MilletIt is important to understand the difference between smart beta and factor indexing in order to obtain the right mix of betas to control risks, François Millet, of Lyxor, says.

BubblesThe use of simulated track records and vague language around methodology is heralding calls for more transparency in the smart beta market. But, discovers Nicholas Pratt, there are different views on how this should be achieved.

Sponsored Profiles

SPONSORED FEATURE: Alternative thinking

Mar 16, 2017

Portfolio Manager Davide Cataldo discusses the results of the Pioneer Investments’ survey on liquid alternatives and how investors can be encouraged to increase their allocation.

SPONSORED FEATURE: Interest rate risk hedging: Swapping to other options

Mar 16, 2017

Heightened margin requirements for cleared and uncleared OTC derivatives pose a challenge for legitimate hedging activities and are driving financial institutions to explore alternative hedging...

SPONSORED FEATURE: Why blockchain could be the fund industry’s next Ford Model T

Mar 16, 2017

Blockchain aims to radically change the way investors can access funds, says Olivier Portenseigne, Managing Director and Chief Commercial Officer of Fundsquare.

SPONSORED FEATURE: Open architecture: In need of protection

Mar 16, 2017

Greater efficiency must be embraced to ensure regulatory changes do not destroy choice for fund buyers, says Bernard Tancré of Clearstream.

Executive Interviews

INTERVIEW: Finding managers that can (and do)

Apr 18, 2017

Fabrice Kremer, a fund selector at Banque de Luxembourg Investments, has berated fundamental managers for failing to beat indices, but he remains committed to active funds. He speaks to Nick...

JERSEY INTERVIEW: ‘A steady sort of place’

Mar 21, 2017

The chief executive of Jersey Finance is keen to portray the island as a stable, trustworthy jurisdiction. He talks to George Mitton.

Roundtables

ROUNDTABLE: The issue is perception

Mar 21, 2017

Our panel discuss tax transparency, the elegance of private placement and why Jersey could do more to promote itself. Chaired by Tom Cowsill in Saint Helier.

ASSET SERVICING ROUNDTABLE: Under pressure

Mar 07, 2017

Funds Europe speaks to leading Luxembourg industry figures about the growing regulatory demands on asset servicers and how to remain profitable in spite of major investments in technology.