PDF An Etf Stream Publication // Www.etfstream.com // Q2 2019 Bey ...

AN ETF STREAM PUBLICATION // WWW. // Q2 2019

BEY NDBETA INVESTIGATING THE SMART BETA, FACTOR & ESG INVESTMENT REVOLUTION

RIDING OUT THE STORM

The art of defensive investing with smart beta

FactorResearch 10 How to allocate smartly to smart beta

Parala

14

Methods for

managing volatility

in indices and ETPs

Axioma

24

Evaluating

consistency across

ESG vendor scores

Killik & Co

26

What fund

researchers look for

in factor ETFs

Global ETF & Index Managed Data Service PCF-Calculation

Expertise | Technology | Data



UPDATE CONTENTS

In this issue

About us

UPDATES

6 The best performing smart beta ETFs in Q1 2019 Returns from ESG based ETFs put under the microscope

8 New Q1 smart beta listings Our regular catch-up on the new smart beta ETFs listed from around the world over the first quarter

PERSPECTIVES

10 How to allocate smartly to smart beta Smart beta has come under pressure in recent years due to poor flows and popular factors such as value delivering negative returns. Nicolas Rabener, managing director at FactorResearch, examines the methods in which investors can allocate to smart beta without having their fingers burnt

14 Methods for managing volatility in indices and ETPs revealed The desire to control the investment journey by divsersifying away potential risks has always been a top priority for investors. Steven Goldin of Parala takes a deep dive into the ways investors can manage volatility through a number of factors and the pros and cons of popular methods

FACTORS IN FOCUS

17 Getting defensive with factors Last year marked the return to volatility. As central banks started withdrawing liquidity from the market, equities took a tumble. London-based global software provider Style Analytics studies how investors should play more volatile markets and what factors work best in certain conditions

21 Defensive strategies get the job done in recent turmoil Following the adverse market conditions in Q 4 last year, Mark Barnes, managing director, head of US research at FTSE Russell, takes a look at which factors performed best during the more volatile period and whether it is worth seeking exposure in more defensive factors

CLOSING REMARKS

24 60 seconds from the buy-side: what fund researchers look for in factor ETFs ETF Stream editor in chief David Stevenson speaks to Kilik & Co's head of fund research Mick Gilligan on the factors he uses to gain exposure, why academic evidence is crucial and the factors to take into account when selecting products.

26 Evaluating consistency across ESG vendor scores Anthony Renshaw, director of index solutions at Axioma Investment takes a deep dive into the inconsistencies in the way environmental, social and governance (ESG) issues are measured between different providers. While there have been numerous ESG methodology studies, the asset management industry is yet to find a one size fits all solution meaning metrics can vary from one provider to the other. Is there a solution to this issue?

David Stevenson David trained as a economist before

moving into financial journalism where he has written about investing and finance for many years. David is CEO and Editor in Chief of AltFiNews

and is also a columnist for the Financial Times (the Adventurous Investor), Investment Week and Money Week. David is an experienced media entrepreneur (he's set up a number of online media companies focused on online TV and viral videos) and investment expert of retail repute.

David Tuckwell David is an Australia-based journalist

who covers exchange traded funds and fintech. He formerly worked in the

ETF industry in London. In another life he was a top national Tetris player.

Tom Eckett Tom joined ETF Stream as a senior writer in March 2019. He started

his career at Investment Week in August 2016 as an asset management correspondent covering ETFs. Outside the office, he is a big boxing, football and cricket fan and can be found most weekends at Victory Road supporting

Leiston FC.



Q2 2019 BEYOND BETA 3

ETF 2025 is a one-day, invite only event, aimed at C-suite leaders within the passive funds space in Europe

JUNE 6th 2019

ETF 2025 will provide a unique opportunity for Industry Leaders

to examine and exchange ideas on; Industry Growth, Business Models and Transformation!

Confirmed speakers include:

Tobias Sproehnle, CEO, Moorgate Benchmarks Nicolas Rabener, Managing Director, FactorResearch Isabell Moessler, ETF Business Development Manager, Euronext

Timo Pfeiffer, Head of Research, Solactive Jamie Patturelli, Director - Exchange Traded Products, NYSE Marco Boldini, Head of Financial Services Regulatory- Legal, PwC

Monica Gogna, Financial Services Partner, Dechert LLP Philip Lovegrove, Partner - Asset Management Department, Matheson

Oliver Smith, Editor, AltFi Terry McGivern, Fund Manager, AJ Bell Nikolai Hack, UK Managing Director & COO, EXO Investing

Hany Rashwan, CEO, Amun AG Iona Bain, Founder, Young Money Blog

When: THURSDAY JUNE 6th2019 Where: Dublin, The Westin Hotel, Bankers Hall EMAIL: SAM.RIDLEY@ VISIT:

Hosted By

SPONSORED By

Supported by

UPDATE COMMENT FROM THE EDITORS-IN-CHIEF APRIL 2019

Editorial

Hello and welcome to Beyond Beta ? the one and only magazine dedicated to smart beta and quantitative investing. Smart beta is going from strength to strength. So much so that globally there are now more than 1,300 smart beta ETFs managing more than $700 billion in total assets. Not bad for an asset class that hardly existed 10 years ago.

While smart beta is booming, there has been little independent analysis of the nascent sector. Most of the literature examining smart beta has been product literature, which at times can be hard to distinguish from marketing material. With this in view, we created Beyond Beta to give an independent look at this important area.

In this edition we start by going through some of the major and more interesting developments in the first quarter of 2019. We survey every new listing and highlight some of the flashy products that caught our eye. We then go through the performers and highlight those that made their investors most proud. The magazine then breaks down into a series of articles which explore a range of popular topics, including defensive strategies in times of volatility; how index and ETF providers game ESG scores; how to choose which factors to buy ? and more.

Beyond Beta is put together by ETF Stream, the London-based ETF trade publication.

Definitions: what is `smart beta' and `thematic' investing?

Before we begin, a quick note on definitions. We define smart beta as non-market-tracking rules-based ETFs. For us, smart beta ETFs do not have to be index-tracking or passive. What matters is that they meaningfully deviate from the market weighted portfolio, while their portfolio managers make trades according to a set of rules. This means, for example, that an actively managed ETF with managers who make discretionary trades or `captain's calls' are not smart beta for us. While an ESG ETF that makes far reaching exclusions does qualify as smart beta.

We define thematic ETFs as non-GICS sector trackers. They seek exposure to a slice of economic activity ? be it marijuana, millennial spending habits, self-driving cars, etc. ? that falls outside the standard GICS breakdown. They are often market weighted. David Stevenson and David Tuckwell Editors-in-Chief, Beyond Beta



SMART BETA UPDATE EDITORIAL

Beyond Beta is published by

Address 7 Castle Street Tonbridge, Kent TN9 1BH

UK E: info@ W:

Publisher David Stevenson E: david@

Editor David Tuckwell E: david.tuckwell@

Senior writer Tom Eckett

E: tom.eckett@

Designer Pascal Don T: +44 (0)7905 299 462 E: pascal.don@ Printed by platinumpresslimited.co.uk T: 0844 880 4722

Advertising and sponsorship enquiries: info@ ? 2018 ETF Stream Ltd

All editorial content and graphics in Beyond Beta are protected by U.K. copyright and other applicable copyright laws and may not be copied without the express permission of ETF Stream,

which reserves all rights. Re-use of any of Beyond Beta's editorial content and graphics for any purpose without ETF Stream's permission is

strictly prohibited. Permission to use Beyond Beta's content is granted

on a case-by-case basis. ETF Stream welcomes requests. Please contact us on info@

Q2 2019 BEYOND BETA 5

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download