The 'Smart Beta 2014' special report comprises seven separate articles listed below, these can be read individually or as a sequence.

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Institutional interest in smart beta continues to grow

Institutional interest in smart beta continues to grow

A recent survey of 300 institutional investors in the US and Europe by State Street Global Advisors (SSgA) – “Beyond Active and Passive, Advanced Beta Comes of Age” – found that 42 per cent of investors currently use advanced beta (or smart beta depending on your semantic tastes) and a further 24 per cent plan to do so over the next three years. 

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Smart factor investing

Smart factor investing

By Noël Amenc, EDHEC-Risk Institute – Two of the main points of criticism of cap-weighted indices, which only offer limited access to the risk premia of equity markets, are the following:

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Multi-factor products begin to offer absolute-return potential

Multi-factor products begin to offer absolute-return potential

There was a clear example this April of just how far smart beta investing has come. Goldman Sachs Asset Management (GSAM) announced that it had agreed to acquire Westpeak Global Advisors, a firm that offers full-customisable solutions for smart beta investing; a clear sign of endorsement by GSAM that this area of equity investing has value.

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A new approach to portfolio construction

A new approach to portfolio construction

At Risk Based Investment Solutions Ltd (RBIS), a wholly-owned subsidiary of the Rothschild Group, there is a firm belief that smart beta has a promising future. In fact, Herve Foucault (pictured), Head of Business and Product Development, goes so far as to say: “This is a real paradigm shift from the traditional cap-weighted model.”