Scientific Beta

Benchmark-sensitive investors will often resort to industry neutrality to manage the unrewarded risks embodied in factor portfolios. While this approach is simple, it is not optimal, particularly as the uncertainty of global supply and demand affects companies in complex and differential ways. This webinar presents the latest research underpinning Scientific Beta's move beyond simple sector-neutrality.

Overview

Benchmark-sensitive investors will often resort to industry neutrality to manage the unrewarded risks embodied in factor portfolios.

While this approach is simple, it is not optimal, particularly as the uncertainty of global supply and demand affects companies in complex and differential ways.

This webinar presents the latest research underpinning our move beyond simple sector-neutrality. By analysing and recognising the similarities between companies and industries, we move beyond simple sector neutrality based on binary classifications and provide a more fine-grained risk management strategy that better uses the active risk budget in a global and a domestic equity portfolio.

Topics covered include:

• What are the limitations of standard sector classification systems?
• How to build parsimonious yet effective industry risk controls?
• Can sector risks be reduced without compromising factor exposures?

Host

Erik Christiansen is Head of Investment Solutions at Scientific Beta. He was previously Head of Investment Strategy with the Etablissement de Retraite Additionnelle de la Fonction Publique (ERAFP), the mandatory pension scheme for French civil servants, where he was responsible for implementing the equity and ESG strategies. He has also previously worked as a Methodology Coordinator and Analyst at Vigeo Eiris, the ESG rating agency. Erik holds a Master’s degree in Management from the ESCP Business School and is a CFA charterholder.

Date/Time

Wednesday, March 13, 2024 at 9am Australian Eastern Daylight Time.