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. 

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now