STOXX CEO: Providers who define smart-beta the best will dominate market

Understanding investor needs the biggest challenge

Matteo Andreetto, CEO of index provider STOXX, has said the smart-beta space is where he sees the most competition for index products, pointing to the need for a better definition of factors and greater innovation.

While it would be difficult to challenge the S&P in the US and MSCI in emerging markets within the traditional market cap-weighted arena, the CEO said the index provider that defined smart-beta the best would be able to dominate the market. "The smart-beta space is driven by better definition of the factors, so ultimately by the performance of the product," Andreetto said. "We are moving away from traditional equity benchmarking into a rule-based, intelligent investment hub. Everyone has their own definition of value, growth, momentum, etc.  "There is no standard definition, so who...