All smart beta articles
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News
PIPAs seeking the best and brightest of the pensions industry
The Pension and Investment Provider Awards for 2022 have now opened for submissions.
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OpinionIs there a future for equities in DB?
Data Crunch: Corporate defined benefit schemes have been shifting allocations away from equities as a means of reducing funding volatility and focusing on assets that can deliver contractual cash flows.
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Features
Active managers unable to mitigate late 2018 volatility
For active managers, the ultimate test of mettle will always be whether they can beat their benchmark. As of the end of 2018 the news looks good for stockpickers specialising in UK equities, but analysts say there are still concerns behind the numbers.
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News
L&G master trust default goes green due to member demand
On the go: The Legal & General Mastertrust is switching its default investment strategy to take account of environmental, social and governance risks, after a study revealed almost 60 per cent of its members favour the approach.
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Opinion
Could thematic investment help engage DC members?
Data crunch: Thematic funds struck a chord with European investors last year, pulling in significant sums of money. To a large extent, their popularity can be attributed to the simple fact that they invest in accordance with themes that the general public understand and relate to. With this in mind, could thematic investment approaches improve defined contribution member engagement?
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Features
Alternative risk premium funds fail to deliver on promises in testing 2018
Analysis: Pension schemes continue to pour assets into fast-growing alternative risk premium strategies, despite a torrid 2018 for returns and concerns over the diversification benefits delivered by the funds.
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OpinionTech can bring sophisticated quant closer to smart beta budget
The rise in popularity of factor investing for UK pension funds in recent years has been inexorable.
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OpinionThe rise and rise of factor investing
Data Crunch: Factor investing has attracted a lot of attention from the UK pensions industry. Defined benefit schemes have seen factors as a way to diversify their growth assets and achieve greater control of risk, while defined contribution schemes are exploring default investment strategies that may offer better value for money to their members.
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OpinionCrowd control: Avoiding the next quant crisis
Quantmare, quantquake, quantageddon. Whatever clunky portmanteau you choose, the resurgence of quantitative factor investing, particularly through cheaper generic implementations, has led some trustees to question whether these popular strategies risk becoming overcrowded in a repeat of the quant crisis of 2007.
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FeaturesHaringey to swap passive equities for multi-factor strategy
The London Borough of Haringey Pension Fund has agreed to convert nearly half of its equity allocation from a passive fund into a multi-factor global strategy. It has also recently trimmed an overweight position in equities into its multi-asset absolute return and credit strategies.
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OpinionSmart beta: Understand the impact on your wider portfolio
In recent years, smart beta or factor investing has gained considerable traction with pension funds seeking to earn higher risk-adjusted returns from their investments through cheaper and simpler approaches than active stock picking.
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FeaturesTPT assists banks with risk capital investment
Mastertrust TPT Retirement Solutions is investing in regulatory capital strategies, where the scheme provides risk capital for the loan books of banks. The trust is also making allocations to alternative risk premiums.
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OpinionAre DGFs really diversified?
From the blog: Over the past five years, diversified growth funds have generally performed well. In fact, all three median DGF series compiled by Camradata met or exceeded their return targets from January 2012 through December 2016.
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FeaturesSmart beta: What drives schemes’ appetite for the strategy?
Smart beta is often seen as a more transparent, simple and low cost alternative to active management. Five experts discuss what is driving the appetite for smart beta among schemes and how the sector is evolving.
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Features
Is there a risk of crowding in smart beta?
Is there a risk of factor‑based portfolios becoming crowded, with increasing popularity potentially leading to overpricing and lower future returns? Eric Shirbini from ERI Scentific Beta, Julien Barral from bfinance, Alan Pickering from Bestrustees, James Price from Willis Towers Watson and Paul Black from Capital Cranfield debate whether crowding really is an issue within smart beta.
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Features
How DC schemes should approach smart beta
How should defined contribution schemes approach smart beta, and how will environmental, social and governance focused investment change the sector? Eric Shirbini from ERI Scentific Beta, Julien Barral from bfinance, Alan Pickering from Bestrustees, James Price from Willis Towers Watson and Paul Black from Capital Cranfield discuss.
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Opinion
What drives the appetite for smart beta among UK pension schemes?
What is drawing pension schemes to smart beta? Eric Shirbini from ERI Scientific Beta, Julien Barral from bfinance, Alan Pickering from Bestrustees, James Price from Willis Towers Watson and Paul Black from Capital Cranfield discuss transparency and trustee training.
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Features
How has the smart beta sector evolved?
How has the smart beta market developed? Eric Shirbini from ERI Scientific Beta, Julien Barral from bfinance, Alan Pickering from Bestrustees, James Price from Willis Towers Watson and Paul Black from Capital Cranfield discuss the range of new opportunities and how the sector has changed.
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News
Keep it simple when exploring new strategies
PLSA Investment Conference 2017: While smart beta has been labelled a cost-effective option for schemes looking for higher returns than a market cap index, trustees turning to these types of strategy have been advised to keep things simple while focusing on governance and costs.
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Opinion
DC Debate Q1 (part 1): Which investment strategies work for DC investors?
In the first DC Debate of 2017, eight defined contribution specialists discuss the pros and cons of illiquid assets, traditional indices and smart beta strategies.