Towers Watson trumpets Smart Beta solutions
Towers Watson has trumpeted its so-called Smart Beta solutions, claiming the company's institutional investment clients have allocated over $15 billion to the products in the past five years.
Towers Watson global head of investment research Craig Baker said that over the past half decade the company had partnered with many different asset managers to develop 20 Smart Beta solutions in areas where there were good investment ideas, but no desirable investment products on a net-of-fees basis.
"We are entirely focused on providing our clients the best net-of-fees investment propositions, regardless of whether they are large or small or investing actively or passively," he claimed.
Baker said the Smart Beta solutions had wide applications for most of Towers Watson's clients, which was why the company had worked with many different asset managers.
"Smart Beta is about trying to identify good investment ideas that can be structured better, whether that is improving existing beta opportunities or creating exposures or themes that are implementable in a low cost, systematic way," he said.
"It is not a substitute for good active management, but it allows resources to be focused on active management in areas where one can't systematise exposures."
Recommended for you
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
New Zealand’s financial regulator is following the footsteps of its Tasman neighbours and proposing to conduct a review on improving the accessibility of financial advice and advice business models.
