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Retail_UnderWatch_-_2018_01

January

January 2018 Finally, a Blog, Twitter & Facebook accounts give access to market commentary, portfolio positioning, links to important industry news, and company and product updates. CLS is not the first player in the market to offer smart beta portfolios to retail clients. - Copia Capital Management, the discretionary fund manager of Novia Group, launched in March 2016 two smart beta ETF portfolios. They are the result of collaborations with US ETF provider First Trust and technical analysis strategists Dorsey, Wright & Associates (DWA). The smart beta ETFs, used as building blocks within each portfolio strategy, use the AlphaDEX index methodology, which selects and weights stocks based on investment merit, as opposed to size. The aim of the index methodology is to identify stocks within a traditional broad-based index which exhibit the fundamental characteristics likely to provide the greatest potential for capital appreciation. Both portfolios achieved above average performance on a yearly basis. - In September, Betterment, the largest robo-adviser ($10Bn AuM) has enlisted the support of Wall Street giant Goldman Sachs to provide a new portfolio option, as part of the firm's mission to deliver deeper personalization for its 270,000+ users. Managed by Goldman Sachs, it is a smart-beta option, providing users with a more aggressive alternative to Betterment's core portfolio, with some expositions to emerging markets and REITs. - In June, despite having criticized competing Schwab robo-advisor for including (3 times more expensive) smart beta strategies, Wealthfront ($8,2Bn AuM) started offering smart beta ETF models without charging any additional fees. If the race to zero fees is well underway as far as asset management charges are concerned, the race to zero fees is effective when it comes to creating asset allocation strategies. And CLS is the disruptor of the moment. The value of CLS TAMP does not come only from the following : - the transmission of the intellectual property offered by risk oriented models - the implementation and active management capacities - the multi-management offer. But above all, it comes from the tools and services designed to empower financial advisors. The so-called tools reflect CLS ongoing commitment to help IRAs enhance their services to clients, increase their operational efficiencies, and expand their businesses. Sources: CLS, Press Back to menu CAP For any question on the articles, please contact us: Caroline Declerck +33 1 76 33 37 02 Dilek Zigha +33 1 76 37 00 18 Florence Nerson-Scheimann +33 1 76 33 58 52 Claire-Anne Perini +33 1 76 33 79 45 The letter and all our publications are available on iWatch Internal Document 27