The AUM loss from these firms could directly accrue to asset managers Moody 's reports on the increasing popularity of smart beta . It predicts the next generation of smart beta funds will incorporate decision - making tools and have a greater focus on research . Moody 's sees the sector evolving into a more disciplined and cheaper form of active management which will place smart beta funds in direct competition with traditional mutual funds . Most at risk are closet indexers with highly diversified portfolios and companies which can not support themselves by performance or other services .
Moody 's reports on the increasing popularity of smart beta . It predicts the next generation of smart beta funds will incorporate decision - making tools and have a greater focus on research . Moody 's sees the sector evolving into a more disciplined and cheaper form of active management which will place smart beta funds in direct competition with traditional mutual funds . Most at risk are closet indexers with highly diversified portfolios and companies which can not support themselves by performance or other services .