Scientific Beta

The report shows that in 2014, all Scientific Beta Multi-Beta Multi-Strategy indices exhibited strong relative returns, compared to broad cap-weighted indices. The SciBeta Developed Multi-Beta Multi-Strategy EW (Equal Weights) Index and the SciBeta Developed Multi-Beta Multi-Strategy ERC (Equal Risk Contribution) Index posted positive relative returns of 3.07% and 2.90% respectively, in comparison with broad cap-weighted indices.

The Multi-Beta Multi-Strategy indices combine exposure to the four most popular smart factors, namely Value, Small Cap, Low Volatility and Momentum. The performance of the Multi-Beta Multi-Strategy indices for the year 2014 was mainly boosted by the performance of the Low Volatility factor, which was the best rewarded factor and, to a lesser extent, by the performance of the Mid-Cap factor. 2014 was not a favourable year to other popular factor tilts such as Value or Momentum. However, the Value and Momentum SciBeta smart factor indices achieved positive relative returns compared to broad cap-weighted indices, and thus also contributed positively to the performance of the Multi-Beta Multi-Strategy indices. 

Among the highlights of the 2014 performance report for the Scientific Beta Multi-Beta Multi-Strategy indices: 

• The report shows that in 2014, all Scientific Beta Multi-Beta Multi-Strategy indices exhibited strong relative returns, compared to broad cap-weighted indices. The SciBeta Developed Multi-Beta Multi-Strategy EW (Equal Weights) Index and the SciBeta Developed Multi-Beta Multi-Strategy ERC (Equal Risk Contribution) Index posted positive relative returns of 3.07% and 2.90% respectively, in comparison with broad cap-weighted indices.
  
  
• Looking at the different regions last year, the SciBeta Japan Multi-Beta Multi-Strategy EW Index and the SciBeta United Kingdom Multi-Beta Multi-Strategy EW Index posted the highest relative returns at 6.28% and 6.00% respectively, followed by the SciBeta Japan Multi-Beta Multi-Strategy ERC Index and the SciBeta United Kingdom Multi-Beta Multi-Strategy ERC Index at 5.97% and 5.31% respectively, compared to broad cap-weighted indices. The lowest performance was obtained by the SciBeta Developed Europe ex UK Multi-Beta Multi-Strategy EW Index with a relative return of 2.20%.
  
  
• When comparing Scientific Beta Multi-Beta Multi-Strategy indices with multi-beta indices from other providers in 2014, the SciBeta Developed Multi-Beta Multi-Strategy EW Index and the SciBeta Developed Multi-Beta Multi-Strategy ERC Index posted performance respectively 3.71% and 3.54% higher than the FTSE Dev Diversified Factor Index and respectively 0.22% and 0.05% higher than the MSCI World Quality Mix Index.