Aberdeen Standard Investments’ approach
Add the power of active to the efficiency of passive with SMARTER Beta™ exclusively from Aberdeen Standard Investments. Managed by a highly experienced team and with ESG embedded in our approach, we target multiple factor premia, aiming to help you enhance return and reduce risk – reliably, robustly and responsibly.
Smart beta, a form of factor investing, has rapidly become a popular alternative to both traditional active and passive management and is now firmly recognised by investors as a third approach to investing.
At Aberdeen Standard Investments, our approach to smart beta is referred to as SMARTER Beta™ - an acrostic for the characteristics that makes it ‘smarter than beta’:
Fully systematic investment solutions that efficiently harvest multiple risk premia factors and regularly rebalances to maintain targeted factor exposures;
Provides targeted exposure to multiple enhanced RIPE factors – Value, Quality, Momentum, Small Size, and Low Volatility – which benefits from low, and even negative, cross-sectional correlations across factors which drives diversification benefits and improves risk-adjusted returns;
Competitively priced bundled solutions (i.e. our proprietary indices are only available to Aberdeen Standard Investments and our investment strategies tracking these indices do not pay index licensing fees) for the benefit of sophisticated institutional and professional investors;
Designed to be more intuitive and diversified than rival approaches in order to perform effectively in a variety of market conditions;
Our proprietary indices are owned by Aberdeen Standard Investments but independently calculated by a leading third party calculation agent/administrator;
Our index universe excludes controversial companies (companies exposed to controversial weapons and those with ‘severe controversies’);
Our enhanced factors are Robust, Intuitive, Persistent, and Empirical.