Smart Beta: Historical Factor Performance
One issue with the smart beta concept is the sheer number of products available in the market place. For some clients a multi-factor product will be a good option, providing exposure to multiple factors in a diversified portfolio. Other clients will be interested in gaining exposure to specific factors, such as low volatility or high quality. For these clients, it would be useful to provide some insight into the historical returns of each factor.
“For the passive investor, the highs and lows represent the normal moves of the market and one can take comfort from the fact that, even after devastating falls of the past, the equity market has always subsequently rallied to new highs …"
In his latest column on passive investing, Chris Riley, investment research manager at RSMR, argues that, despite a testing start to the year for investors, recent market movements are not particularly out of line with historical experience
“The economies in Asia are in the process of liberalising themselves and playing catch-up with the West. On the whole, it is likely to be easier to find companies that can expand and generate strong long-term returns for shareholders in this region and we would highlight two trusts that have exposure to Asia and would be difficult for advisers to replicate using funds in the open-ended universe …”
In his latest column for Adviser-Hub, Pacific heights, Chris Riley, investment research manager at RSMR, looks at how investors and their advisers can use investment trusts to help unlock value in Asia over the longer term