Smart Beta

Research-led and experience-driven, our team brings practical expertise to delivering the best of smart beta strategy design and execution.

25+ years

delivering precision smart beta

$130+ billion

smart beta assets under management

15+

dedicated smart beta portfolio managers

8

specialist researchers

Target the Real Drivers of Return

Smart beta can help investors target better risk-adjusted returns and capture excess performance in a more cost-effective way.

Discover more about the smart beta factors that drive returns.

 

Driver 1
Value

Value stocks have been shown to outperform the broader market indices over the long term. These results have been replicated by a number of researchers for many different sample periods and for most stock markets around the world.

Driver 2
Size

Smaller capitalization companies have tended to outperform larger capitalization companies over the long term. Similar to the value effect, the size effect has been reproduced for numerous sample periods and for most major securities markets around the world.

Driver 3
Volatility

Creating a portfolio with lower volatility or tilting towards lower risk stocks tends to generate a higher risk-adjusted return than traditional financial theory would suggest.

Driver 4
Quality

Investing in higher-quality companies has been shown to deliver greater downside protection, so, in down markets their stock price is less impacted than the overall market.

Driver 5
Momentum

Market efficiency proponents believe that stock prices have no memory BUT empirical evidence shows something else: Many stocks that have done well recently tend to carry on doing well in the near term. The momentum smart beta factor aims to capture this.

Consider
ESG

The sixth smart beta factor? We don’t consider ESG to strictly be a smart beta factor however we do see it increasingly being used alongside smart beta factors as a powerful complement for risk reduction.

Smart Beta Strategies

We can help you with factor guidance or deconstructing your portfolio to assess which factors are contributing return. From bespoke indices, custom-tilted or multifactor approaches, access to commercial products or the very latest ETFs we can help you leverage the benefits of smart beta in your portfolio.

Extensive research has shown that factors drive returns. In fact, between 50% and 80% of a portfolio’s excess return can be attributed to exposure to specific factors, such as low volatility or size.

Our Latest Innovation

Our core factor approach combines multiple factors and optimizes them, providing broad diversification and maximizing the ability to outperform, all in one powerful, easy-to-implement package.

Our Latest Thinking

From the latest factor trends to how to allocate to smart beta within a multi-manager equity program.

The average defined benefit plan hires too many managers; increasing fees and limiting the ability to meet return. Find out how to avoid doing the same.

Why and how to implement ESG in smart beta.

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Meet the Team

"We’ve been proponents of smart beta from the earliest days. The team’s indexing skills have helped us build smart beta products that are second to none. Our core factors strategy is a great example of how we’ve combined our indexing expertise and smart beta research to deliver the next generation in factor investing."

Lynn Blake
CIO of Global Equity Beta Solutions

"As smart beta strategies grow in popularity, we believe that efficient portfolio implementation will become paramount. We are well equipped to be the best implementers in the industry"

Emiliano Rabinovich
Senior Portfolio Manager, Global Equity Beta Solutions

"Here, we thrive on research and innovation. But not just for the sake of it, we’re interested in research that will directly, practically help provide better investment outcomes for our clients. Things like timing a smart beta allocation correctly can really make a difference to a portfolio."

Jen Bender
Global Head of Research

"We thrive on collaborating with clients to deeply understand their unique investment objectives and requirements.  We bring practical, real-life experience to the adoption of smart beta into portfolios, and around strategy design and execution."

Yvette Murphy
Senior Strategist, Global Equity Beta Solutions

Reinventing How Beta Funds Perform: Index Investing

We know how important it is for the indexing component of our clients’ portfolios to deliver reliably. Discover why your next index investing meeting might be a lot shorter than you’d expect.