Smart Beta investors looking to ‘mix and match’
Investors using smart beta strategies have moved from using single strategies to using a number of strategies according to AXA IM which has launched a number of products utilizing multiple strategies and factors.
AXA IM, Director for Australia and New Zealand, Craig Hurt said the growing popularity and use of smart beta investments, which use passive investments overlaid with certain risk premia, has seen investors starting to blend them within portfolios.
"The smart beta conversation has evolved from investors considering strategies that just focus on one risk premia to a blended, more sophisticated risk management approach," Hurt said.
"When smart beta approaches are considered in a risk factor analysis framework, investors are exposed to a more diversified set of risk factors and can better control their risk and harvest a wider range of risk premia."
"The patterns of active returns for each smart beta strategy in the short term are generally imperfectly correlated and this means that smart beta strategies can be combined to target a desired risk and return outcome in a more diversified and targeted manner."
As a result of this interest AXA IM has launched a series of blended SmartBeta equity strategies focusing on risk premia such as value and momentum.
AUTHOR
Jason Spits
Recommended for you
State Street has rebranded its State Street Global Advisors arm, which has US$4.6 trillion in assets under management, following a series of deals with financial services firms in recent months.
Northern Trust Asset Management has appointed a new head of international and responsible investing.
More than 20 winners have been revealed for the annual Fund Manager of the Year Awards.
Regal Partners has announced its latest alternatives acquisition, taking a 50 per cent stake in real estate and advisory platform Ark Capital Partners ahead of a future hotel strategy launch.
