We are increasingly living in an era of industrialised capital allocation. The popularity of tracker funds, ETFs and, more recently, smart beta products has ballooned as low-cost access is seen as a more convenient and lower-risk way for allocators to achieve either broad market returns, or targeted exposures to specific sectors of the market.

It is estimated that close to a third of the market capitalisation of global equity markets - or around $20 trillion - is now managed passively. So it is important to think about how this may be impacting the returns of the broader market, and also its potential impact on active strategies.