The Perceived Advantages of Self-Indexing for Institutional Equity Investors

Benjamin Herzog, Jenna Jones, Shahyar Safaee
{"title":"The Perceived Advantages of Self-Indexing for Institutional Equity Investors","authors":"Benjamin Herzog, Jenna Jones, Shahyar Safaee","doi":"10.3905/jbis.2023.1.043","DOIUrl":null,"url":null,"abstract":"Institutional asset owners increasingly seek to customize index-linked strategies in order to take their ESG and climate preferences into consideration. This trend away from cap-weighted benchmarks does, however, bring forth challenges for asset owners in fulfilling their fiduciary duties. To address these issues, a new self-indexing approach can provide investors with the tools to fully control the index design process and independently monitor the direct and indirect impacts of customization decisions. A 2023 EDHEC survey of institutional asset owners in North America and Europe reveals that less than half of respondents have the capacity to fully analyze their risk exposures, but more than 90% anticipate the further development of digitalized customization capabilities in the institutional passive investment industry. These findings highlight the significant potential for the use of self-indexing as a solution to help institutional asset owners fulfill their fiduciary responsibilities.","PeriodicalId":284314,"journal":{"name":"The Journal of Beta Investment Strategies","volume":"21 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2023-07-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"The Journal of Beta Investment Strategies","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.3905/jbis.2023.1.043","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0

Abstract

Institutional asset owners increasingly seek to customize index-linked strategies in order to take their ESG and climate preferences into consideration. This trend away from cap-weighted benchmarks does, however, bring forth challenges for asset owners in fulfilling their fiduciary duties. To address these issues, a new self-indexing approach can provide investors with the tools to fully control the index design process and independently monitor the direct and indirect impacts of customization decisions. A 2023 EDHEC survey of institutional asset owners in North America and Europe reveals that less than half of respondents have the capacity to fully analyze their risk exposures, but more than 90% anticipate the further development of digitalized customization capabilities in the institutional passive investment industry. These findings highlight the significant potential for the use of self-indexing as a solution to help institutional asset owners fulfill their fiduciary responsibilities.
机构股票投资者自指数的感知优势
机构资产所有者越来越多地寻求定制与指数挂钩的策略,以便考虑到他们的ESG和气候偏好。然而,这种背离上限加权基准的趋势,确实给资产所有者在履行其受托义务方面带来了挑战。为了解决这些问题,一种新的自索引方法可以为投资者提供完全控制索引设计过程的工具,并独立监控定制决策的直接和间接影响。EDHEC在2023年对北美和欧洲的机构资产所有者进行的一项调查显示,不到一半的受访者有能力全面分析其风险敞口,但超过90%的受访者预计机构被动投资行业的数字化定制能力将进一步发展。这些发现突出了使用自索引作为帮助机构资产所有者履行其信托责任的解决方案的巨大潜力。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
自引率
0.00%
发文量
0
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:604180095
Book学术官方微信