Smart beta products may be suffering from their own success – at least according to one firm.
Research Affiliates, itself a smart beta index compiler, has suggested the popularity of well-known smart beta indexes – including its own – will reduce and in some cases wipe out their expected excess returns over their benchmarks.
Its chairman Rob Arnott is well known for warning that much of smart beta’s returns come from short-term flows into the sector. But the firm is now warning of longer-term
- Banks hope final FRTB rules will ease NMRF burden
- Functional programming reaches for stardom in finance
- Brexit novations ‘on hold’ to gain reg relief
- Asia moves: Natixis sales head moves to Barclays, new banking head for StanChart Singapore, and more
- Buy-siders eye ways to get ahead of US resolution stay rules