Our SmartBeta solution is a long-term investment strategy that aims to capture market beta more efficiently than traditional index investing, while keeping costs low.
While traditional index investing has sought to solve the issue of how best to harvest the beta available from financial markets at a low cost by simply tracking the relevant market capitalisation-weighted index, such an approach contains a number of well-documented shortcomings associated with this approach such as a tendency within the equity space to cling on to past winners.
SmartBeta, centres on intelligent diversification by focusing on factors that are less subject to investors’ behavioural flaws, like volatility, value, momentum, small caps and quality.
Leveraging our proprietary fundamental insight process and a long term track record of looking past market capitalisation to target desirable fundamental features, the team uses a three step investment process that has risk monitoring embedded throughout process. With a forward looking, outcome-focused approach and a relentless drive to minimise fees and transaction costs, we aim to provide investors with a sophisticated yet straightforward solution.
Risks associated with this strategy:
- Market risk and risk of invested capital loss
- Equity risk
- Risk linked to global investments
- Emerging markets risk
- Risk linked to Systematic Method and Model