Most advisers will consider smart beta, survey finds

A new survey by VanEck has found that most advisers are open to investing in smart beta strategies, indicating that these products are becoming mainstream investment choices.

In a statement yesterday, the asset manager announced the findings of its June Smart Beta survey, which questioned 120 Australian financial professionals, 54 per cent of whom were with independent financial firms, to gauge opinions on smart beta investing.

The survey found that more than 90 per cent of financial professionals would consider investing in smart beta, while 89 per cent believed smart beta strategies will outperform or perform in line with active strategies.

The survey also found outperformance, ease of trading and diversification are the most important motivations for advisers to begin investing in smart beta strategies.


“The findings of the survey show that smart beta is moving from the periphery to a mainstream investment option,” said managing director, VanEck Australia, Arian Neiron.

“It is likely that smart beta strategies will become more prevalent in portfolios in the future; however, there is still a need for more education to ensure advisers and clients have adequate information to confidently invest in smart beta strategies.”

While awareness of smart beta investing is high, and 100 per cent of advisers or brokers using smart beta are satisfied with it, only 37 per cent of advisers are currently using smart beta strategies, the survey showed.

Almost two thirds of respondents cited not knowing enough about smart beta strategies as a reason for not investing.

Nevertheless, “globally, smart beta is the fastest growing segment of the asset management industry”, Mr Neiron said.

“Today there are a number of different smart beta strategies which total in excess of $2.1 billion in assets, confirming the incredible growth of smart beta investing in Australia."

Most advisers will consider smart beta, survey finds
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