Scandinavian pension funds have for several years been trailblazers for investing in risk premia, a strategy that focuses on risks rather than assets. Now UK and US pension funds have started to show interest and investment banks have also taken note.

Many banks are hiring staff in anticipation of a significant increase in appetite for the investment approach from institutional investors. Tom Leake, European head of equity derivatives structuring at Deutsche Bank, said: "We're in year four of a 10-year trend, and this market is going to be as big as ETF investing."