Aberdeen Standard Investments has increased its Smart Beta offering with the launch of a multi-factor global equity strategy, the company has announced.
The Smart Beta Low Volatility Global Equity Growth fund will be managed by the firm’s Quantitative Investment Strategies (QIS) team, under the leadership of its global head of quantitative investments, Sean Phayre.
The fund offers diversified exposure to five-factor premia, which are: 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 will sit alongside the firm’s Smart Beta Low Volatility Global Equity Income fund, which was launched in May 2017.
Commenting on the launch, Phayre said: ‘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.’
Formed in 2005, the QIS team manages a diverse range of systematic strategies and products across the risk-return spectrum including indexation, enhanced indexation, smart beta, and active quant employing artificial intelligence and machine learning.