The Sfr1.3 billion ($1.45 billion) Lombard Odier pension scheme has reduced its exposure to smart beta indices and put money into actively-managed strategies, for fear that stock market indices are getting stretched.

In 2009, the scheme sought 90% of its stock market returns from smart beta indices and illiquid assets leaving the rest actively managed. This year, however, it has cut its smart beta weighting, thus taking smart beta and illiquids to 67%. This means its active weightings have risen from 10% to 33%. A spokesman confirmed they are likely to rise further.