Occasional press reports of monkeys beating investment managers have not been taken seriously but rigorous academic study is indicating that there may be truth behind the story.
The framework – known as Smart beta – shows how investors would have beaten industry-standard benchmarks, such as the FTSE All Share and S&P 500, providing an impressive measure of investment success. Smart beta is already shaping the strategies followed by investors, and professionally-invested funds.
BWCI’s Investment Partner, Mark Colton, said: “This is groundbreaking news that is already having a major impact on the investment world. All corporate investors are likely to hear about Smart beta sooner or later, and will want to understand how it might affect their pension, charity, endowment or trust fund.”
Those responsible for corporate investment are used to thinking of portfolios as quite distinct: a final salary pension plan is very different from the newer money purchase arrangement, for example, and holding shares is not the same as buying a unit trust or a group pension policy. However Smart beta could have an effect on them all, and this is one of the reasons it is attracting so much attention, Mr Colton said.
BWCI will be providing free seminars to help inform and provide a forum for discussion. The details are: Tuesday 17 June at the Pomme d'Or Hotel, Jersey and Thursday 19 June at Albert House, Guernsey. Booking is via email at firstname.lastname@example.org