Invesco ambitious about smart beta


    Invesco is looking to investor interest in smart beta to grow its asset management business.

    The firm’s exchange traded fund business, PowerShares, plans to add portfolio management, execution, capital markets, and product development and strategy staff this year, the Financial Times reports. The Atlanta-based PowerShares reported in a LinkedIn job posting that it wants to triple revenues in the next three years. PowerShares has grown significantly already, from $6 billion in 2006 when it was bought by Invesco to $105 billion under management today.

    PowerShares initially grabbed 13% of the smart beta market with its smart beta ETFs, but that was down to 9% at the end of last year. Writes the FT:

    “Smart beta, where PowerShares had a first-mover advantage, is now a focus for many firms, which have gained assets and market share,” says Deborah Fuhr, managing partner at ETFGI, noting the firm’s early embrace of the concept of “intelligent indexing.” “Globally there are firms that I think have had a stronger and louder voice in this [smart beta] space and so the challenge is going to be having people look at your product,” she says.

    The firm did not confirm exactly how many hires will be made, but said that PowerShares is investing in portfolio construction and operations staff in a strategic move to bring client-ready products to the market more quickly.

    Photo: BK via Flickr.