Scientific Beta

ERI Scientific Beta is pleased to announce that the new version of the Scientific Beta platform is available as of 3 February, 2014. New features include access to some 225 smart factor indices, momentum smart factor indices, highly liquid versions of our current selection schemes and long-term track records.

ERI Scientific Beta is pleased to announce that the new version of the Scientific Beta platform is available as of 3 February, 2014, notably extending our offering in the field of smart factor indices.

This new release includes the following features: 

• Our 225 smart factor indices, corresponding to a choice of factor exposures that are popular with investors, and to a smart diversification of the indices representing these factor choices, are now available in a dedicated “Smart Factor Indices” section, as well as in the Index Finder.
  
  
• In addition to the current smart factor indices (value, size, volatility, dividend yield and liquidity stock selection schemes that can be applied prior to the diversification weighting schemes in order to gain clear and stable exposure to the corresponding risk factors), ERI Scientific Beta now offers momentum smart factor indices (selection of stocks based on one-year-minus-one-month price momentum). 
  
  
• In order to further improve the investability of all of its indices, including smart factor indices, ERI Scientific Beta is now offering highly liquid versions of our current selection schemes. This novel approach is a robust way of obtaining a trade-off between increasing the index exposure to a given risk factor by selecting stocks that can deteriorate the capacity of the smart index, and ensuring that the resulting index remains truly investable, by filtering out least liquid assets from the selection, whatever the chosen factor tilt is.  

• The “Diversified Risk Parity” weighting scheme has been renamed as “Diversified Risk Weighted”, and remains part of our multi-strategy offering.
  
  
• Finally, the current release also includes ERI Scientific Beta long-term track records (from 31/12/1972 to 31/12/2012) for all available Scientific Beta stock selections and weighting schemes (versions with no relative risk control), performed over a universe of the 500 largest capitalisation US stocks. These long-term track records are available in the dedicated “Long-Term Track Records” section in the “Scientific Beta Indices” menu on the platform. We consider that it is crucial for all investors to be able to assess the long-term consistency and robustness of the performance of Scientific Beta strategy indices and perform analyses at different periods over different market and economic cycles.

For further information about this release, or any other questions, please contact our Client Services department on +33 493 187 851 from 3.00am to 12.00am CET or at clientservices@scientificbeta.com.