Frequent changes in index methodology are quite a common occurrence in the smart beta industry. Such changes can sometimes create inconsistencies between different product offerings across time and may affect factor definitions, factor selection, and portfolio construction principles. In this context, transparency of changes in index offerings and methodologies is crucial because it allows investors to evaluate the quality of different index offerings. It is also important that the changes are consistent with investment objectives. This webinar analyses the implications of inconsistencies for investors and illustrates problems with industry practice using examples from recent index changes.
Overview
Frequent changes in index methodology are quite a common occurrence in the smart beta industry. Such changes can sometimes create inconsistencies between different product offerings across time and may affect factor definitions, factor selection, and portfolio construction principles.
In this context, transparency of changes in index offerings and methodologies is crucial because it allows investors to evaluate the quality of different index offerings. It is also important that the changes are consistent with investment objectives.
This webinar analyses the implications of inconsistencies for investors and illustrates problems with industry practice using examples from recent index changes.
Topics covered include:
• What do inconsistencies mean for investors?
• Which inconsistencies exist in the industry?
• Case study: What is the impact of index changes on performance?
• The importance of being aware of the potential risks of index changes.
Slides
To receive the slides from the webinar, please click here.
Host
The webinar was hosted by Felix Goltz, Research Director at Scientific Beta. Dr. Goltz carries out research in empirical finance and asset allocation, with a focus on alternative investments and indexing strategies. His work has appeared in various international academic and practitioner journals and handbooks. He obtained a PhD in finance from the University of Nice Sophia-Antipolis after studying economics and business administration at the University of Bayreuth and EDHEC Business School.
Date/Time
Thursday 11 July, 2019 at 3.00pm BST / 4.00pm CET / 10.00am EST.