When sense prevails

  The merits of separating alpha and beta have long been a hot discussion topic in the investment world. In the wake of the crisis, and the resulting dissatisfaction with many alpha managers, the purification of alpha and beta will likely take on new vigour. The ETF industry’s expansion increasingly presents investors with pure beta products to form the core of portfolios, making it well positioned to benefit, according to John Donohoe, CEO of fund management advisers Carne Global Financial Services. Yet much work still needs to be done to increase awareness about the benefits of b...