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Can smart-beta claim the edge over active investing?

Buying and selling stocks by strictly sticking to the markets has its rewards in the long run over more actively managed funds, a "smart beta" analyst has told CNBC.

"The fundamental index systematically every year rebalances the portfolio, selling the market darlings - the outperformers and buying and increasing weight of the laggards to create a balanced return inside the market," Chris Brightman, CIO of Research Affiliates told CNBC on the sidelines of the FundForum in Berlin .

"It is a systematic value strategy that has been demonstrated to outperform the market by about 2 percent per year at very low fees and at full transparency."