The New Active Decision in Beta Management

In this 2013 study, Northern Trust examines how institutional investors might be using alternative indexes in their portfolios. With the increased focus on risk management and the growing demand for low-cost, transparent strategies, they wondered whether making an allocation to alternative indexes might be the new active decision in beta management.

This study includes a multi-pronged approach:

• collected the views of 51 institutional investors from across the globe, with a collective responsibility for over US$800 billion
• investors ranged from pension funds to sovereign entities located across Europe, North America and Asia - many of them are early adopters of alternative indexes
• further supported by industry expert opinions, gathered through qualitative interviews with global investment consultants and index providers