Aberdeen Standard Investments has launched its second SMARTER Beta fund, a diversified multifactor global equity strategy named the Smart Beta Low Volatility Global Equity Growth Fund, on the Aberdeen Global (AG) platform in Luxembourg.
As the latest addition to the SMARTER Beta fund suite on the AG platform, the fund offers diversified exposure to five ‘factor premia’: value, quality, momentum, low volatility and small size. The investment objective is to provide investors with growth and income along with a volatility well below that of the global equity markets across a full market cycle. This fund comes on the back of the successful launch of a high income multifactor global equity fund, named the Smart Beta Low Volatility Global Equity Income Fund, in May 2017 which attracted over USD100 million in client capital at launch and has subsequently delivered attractive risk-adjusted returns.
The new Smart Beta Low Volatility Global Equity Growth Fund, along with the Smart Beta Low Volatility Global Equity Income Fund, is managed by Aberdeen Standard Investments’ Quantitative Investment Strategies (QIS) team under the leadership of Sean Phayre.
QIS is comprised of 28 investment professionals located across offices in Edinburgh, London and Shanghai and manages USD93 billion in assets (as at 31 December 2017). Formed in 2005, the QIS team manages a diverse range of systematic strategies and products across the risk-return spectrum including indexation, enhanced indexation (BETTER Beta), smart beta (SMARTER Beta), and active quant employing artificial intelligence and machine learning. The QIS team has been managing portfolios employing factor premia for over a decade and now has over USD43 billion in factor premia equity strategies; within this total, USD11 billion is already invested in smart beta.
Sean Phayre, Global Head of Quantitative Investments at Aberdeen Standard Investments, comments: “Smart beta is now firmly recognised by sophisticated investors and their consultants as a third approach to investing. It has answered the challenge facing many cost-conscious investors by focussing on the aspirations of active management, while enjoying the systematic efficiencies of passive management. “In general, smart beta aims to achieve either above conventional market returns or below conventional market risk. However, we believe it can achieve both, as is the case with our own SMARTER Beta capability”.
David Wickham, Global Head of Smart Beta at Aberdeen Standard Investments, added: “Smart beta is leading to rapid changes in the global investment landscape and is one of the fastest growing segments of the asset management industry, having recently breached USD1 trillion in assets under management. This is testament to the benefits of smart beta strategies that aim to outperform equivalent market capitalisation weighted indices while retaining the numerous benefits of indexing such as objectivity, transparency, and relatively low costs.
“Given that the current market environment is characterised by a high degree of political and macroeconomic uncertainty, we believe investors would be well advised to consider an allocation to factor premia strategies, such as SMARTER Beta, that aim to deliver superior risk-adjusted returns over the long-term”.
Aberdeen Standard Investments is also progressing with the launch of exclusive and proprietary SMARTER Beta indices – covering eight index series including Diversified Multifactor, High Income Multifactor, Low Volatility Multifactor, ESG Multifactor, Value Multifactor, Quality Multifactor, Momentum Multifactor and Small Size Multifactor – that will showcase the firm’s decade-long multifactor investing expertise.
Ends
Notes to editors
The Luxembourg-domiciled Smart Beta Low Volatility Global Equity Growth Fund has initially been registered for sale in Luxembourg, Switzerland, Sweden, France, Italy, the Netherlands and Portugal. It has an annual management charge of 0.25% (institutional share class) and 0.50% (bundled share class).
Aberdeen Standard Investments
- Aberdeen Standard Investments is a leading global asset manager dedicated to creating long-term value for our clients, and is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.
- With over 1,000 investment professionals, we manage £575.7 billion, (USD778.9bn)* of assets worldwide. We have clients in 80 countries supported by 50 relationship offices. This ensures we are close to our clients and the markets in which we invest.
- We are high-conviction, long-term investors who believe teamwork and collaboration are the key to delivering repeatable, superior investment performance.
- Standard Life Aberdeen plc is headquartered in Scotland. It has around 1.2 million shareholders and is listed on the London Stock Exchange. The Standard Life Aberdeen group was formed by the merger of Standard Life plc and Aberdeen Asset Management PLC on 14 August 2017.
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*as of 31 December 2017
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Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.
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Standard Life Investments companies:
Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated in the UK by the Financial Conduct Authority.
Standard Life Investments (Hong Kong) Limited is licensed with and regulated by the Securities and Futures Commission in Hong Kong and is a wholly-owned subsidiary of Standard Life Investments Limited.
Standard Life Investments Limited (ABN 36 142 665 227) is incorporated in Scotland (No. SC123321) and is exempt from the requirement to hold an Australian financial services licence under paragraph 911A(2)(l) of the Corporations Act 2001 (Cth) (the ‘Act’) in respect of the provision of financial services as defined in Schedule A of the relief instrument no.10/0264 dated 9 April 2010 issued to Standard Life Investments Limited by the Australian Securities and Investments Commission. These financial services are provided only to wholesale clients as defined in subsection 761G(7) of the Act. Standard Life Investments Limited is authorised and regulated in the United Kingdom by the Financial Conduct Authority under the laws of the United Kingdom, which differ from Australian laws.
Standard Life Investments Limited, a company registered in Ireland (904256) 90 St Stephen’s Green Dublin 2, is authorised and regulated in the UK by the Financial Conduct Authority.
Standard Life Investments (USA) Limited is registered as an Exempt Market Dealer with the Ontario Securities Commission and as an Investment Adviser with the US Securities and Exchange Commission. Standard Life Investments (Corporate Funds) Limited is registered as an Investment Adviser with the US Securities and Exchange Commission.
Standard Life Investments (Japan) Limited, registered to Head of Kanto Local Financial Bureau (financial instrument business 2913) is licensed with and regulated by the Financial Services Agency in Japan, and is an association member of Japan Investment Advisers Association, and is a wholly-owned subsidiary of Standard Life Investments Limited.
Standard Life Investments (Singapore) Pte. Ltd is regulated by the Monetary Authority of Singapore and licensed under the Securities and Futures Act (License No.: CMS100581-1), and is a wholly-owned subsidiary of Standard Life Investments Limited.