PMC Market Commentary: February 21, 2014

A Macro View – Indexed SMAs: A Comprehensive Source of Beta and Tax-Efficiency

Advisors and their investor clients are increasingly incorporating beta exposure in their portfolios. According to the Investment Company Institute, index fund assets have risen from about 7% of all equity fund assets in 1997 to more than 30% today. The reasons behind this secular transition include a desire to access market exposures cost-efficiently, and an awareness of a growing amount of academic research questioning whether active managers can truly add value consistently over time.