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Consultancy Towers Watson has found that its institutional investment clients globally allocated over USD8 billion to smart beta strategies during 2014, bringing the total exposure to around USD40 billion through 550 portfolios in these strategies. The global presence of the consultant's clients can be broken down as 75% in the U.K., 5% in Continental Europe, 8% in North America, 6% in Oceania and 6% in Asia.
"Our clients in the U.K. were early adopters of the smart beta concept which is now broadly recognised in this market and sees significant inflows of capital," said Luba Nikulina, global head of manager research at Towers Watson in London. "The familiarity with smart beta is currently increasing in other regions and we expect to see more interest in the future," she added.
Luba Nikulina
The investments have been made across a range of asset classes. This compares to its clients having a USD32 billion exposure to smart beta strategies at the end of 2013 and USD20 billion in 2012, according to the consultant's global investment manager selection data.
"Interest in thinking smartly about...