Can SA’s smart beta funds get smarter?
Passive investment managers have been introducing multifactor funds to deliver market-beating returns
SA’s smart beta providers are attempting to make their funds smarter by diversifying across multiple “factors” that have been identified as potential sources of returns higher than those the market can deliver.
Simple passively managed index-tracking funds invest in the shares that make up a market index, such as the all share index or top 40 index, in line with the size of the shares in the index. They deliver returns in line with the market after costs.