Despite all the advantages smart beta strategies can offer to investors, it is important that they be aware of some of the implicit risks that they are subjected to. This webinar will review why hidden risks are important for investors. It will focus on three important implicit risks: market beta bias, sector risk and geographical risk. The webinar will look at the impact of these risks and will also review how the risk control options that allow investors to meet their fiduciary responsibility can be implemented.
Overview
Despite all the advantages smart beta strategies can offer to investors, it is important that they be aware of some of the implicit risks that they are subjected to.
The decisions on selecting smart beta strategies are often based more on fees and recent performance rather than analysing risks. As a result, the risk implications of smart beta strategies – which often drive this recent performance – are not fully understood.
Smart beta strategies are selected to provide explicit exposure to some well-rewarded factors (Value, Momentum, Low Volatility, etc.). These factors provide good adjusted returns over the long-term but they are also exposed to a number of hidden or implicit risks that drive short-term performance.
These issues have notably been underlined in a recent Scientific Beta publication entitled "Misconceptions and Mis-selling in Smart Beta: Improving the Risk Conversation in the Smart Beta Space."
This webinar reviews why hidden risks are important for investors. It focuses on three important implicit risks that smart beta investors are subjected to, i.e.: market beta bias, sector risk and geographical risk. In this webinar, we look at the impact of these risks and we also review how the risk control options that allow investors to meet their fiduciary responsibility can be implemented.
Slides
To receive the slides from the webinar, please click here.
Host
The webinar was hosted by Eric Shirbini, Global Research and Investment Solutions Director at Scientific Beta. Prior to joining Scientific Beta, Eric Shirbini was a quantitative analyst at UBS, BNP Paribas and Nomura International. During this time he worked on a diverse range of topics including multi-factor models, fundamental stock valuation, equity market indices, portfolio construction and portfolio trading. At BNP Paribas, Eric managed a team of analysts who were responsible for the Global Equity Research Database. Mr. Shirbini holds a BSc and PhD from University College London and an MBA from CASS Business School.
Date/Time
17 January, 2019 at 4.00pm CET / 10:00am EST.