Asset owners in North America and Europe are actively using smart beta indexes strategically and tactically to achieve investment objectives, new research shows.
Russell Indexes conducted the institutional market survey (“Smart Beta: A Deeper Look at Asset Owner Perceptions) for investors considering the use of smart beta strategies in their portfolios. Survey participants included 181 asset owners with at least $200 million in AUM in the United States, Canada, Europe and the Middle East.
Investors managing more than $10 billion (35 percent of those surveyed) are seeking smart beta indexes more for their investment utility, ability to reduce risk and enhance returns than for cost savings. Across North America and Europe, asset owners use smart beta indexes and smart beta index-based investment strategies as benchmarking tools to control unwanted exposures or to emphasize certain investment factors in global multi-asset portfolios.