The Taiwanese pension fund manager has evolved a smart beta strategy that has showed its worth in a variety of market conditions. The key to success? Rotation.
The Malaysian state-linked unit trust manager has given factor-based global equity mandates to three fund houses and is mulling investing into new types of illiquid assets, say sources.
While the concept of factor investing has had some reassessment over the past year or two, industry participants argue that there are still rewards to be had from employing it.
The Australian fund is, like other institutions such as Japan's GPIF, exploring how it can more cheaply replicate active management. But they remain cautious about some aspects of smart beta.
Pension schemes in Asia plan to increase and broaden their use of smart-beta strategies in 2016, including state retirement funds in Japan and Taiwan.
Prime broking contracts stipulate that Lehman can treat hedge-fund clients' assets as its own, putting an untold amount of fund assets at risk; but Japanese regulators move to ensure an orderly unwinding.