Popularity of 'smart' funds pushes fees to record lows

London

LAUNCHES of investment funds that mimic strategies used by active managers have surged 60 per cent over the past year to cater to growing demand, with average fees hitting record lows.

Such "smart-beta" funds use formulas to decide when to buy and sell stocks and bonds on a semi-regular basis, against funds blindly tracking an underlying index or those being actively managed on a daily basis.