PSERS Rules Out Smart Beta For Now, Continues Review Of Indexing

​The Pennsylvania Public School Employees’ Retirement System (PSERS) has no plans to invest in smart beta, even as it conducts a wider review of its investments that is aimed at cutting costs and helping the plan meet its funding obligations. A report last year by a state commission tasked with investigating investment fees suggested PSERS make certain investment changes and recommended moving to fully index all public market investments in equity and fixed income. Smart beta is mentioned in the Public Pension Management and Asset Investment Review Commission’s report as a way to access risk factors with a lower cost.