Smart beta products are a disruptive financial innovation with the potential to significantly affect the business of traditional active management. They provide an important component of active management via simple, transparent, rules-based portfolios delivered at lower fees. They clarify that what investors need from their active managers is pure alpha—returns beyond those from static exposures to smart beta factors. To effectively position themselves for this evolution in active management, asset managers need to understand the mix of smart beta and pure alpha in their products, as well as their comparative advantages relative to competitors in delivering these important components.As Blackrock is a supplier of "smart beta" fund products, are these authors talking their own book or is this truly a new form of financial disruption?
The full post is available at our new site here.
I am happy to announce that the new site is now re-open for new subscribers. We closed our site to new subscribers in January in order to better control the rapid growth of our community. After listening to feedback and making a few tweaks to the site and the content, such as the addition of a mid-week technical update, the site is now re-open for business.
You can subscribe for 1 year (US $249.99), 1 month (US$24.99) or 1 day (US$4.99);. Even if you are not ready to subscribe, you can always sign up for email notification of free posts as they are free and available to the public two weeks after publication.
As a reminder, here is a sample of some of past posts:
- Why I am bearish (and what would change my mind) May 2015
- Relax, have a glass of wine August 2015
- Why this is not the start of a bear market September 2015
- The reason why the bulls should be cautious about a January hangover December 2015
- Why this is a correction and not a bear market January 2016
If you give a man a fish, he'll eat for a day.We would love to have you join our community. We stand ready to help you build your own boat. Come over to the new site and take a look.
If you teach a man how to fish...he'll want to get a boat.