Scientific Beta

AllAboutAlpha: "EDHEC Risk Institute, in collaboration with ERI Scientific Beta, surveyed 114 investment professionals between June and September 2017 about their motivation and interests with regard to equity factor strategies. It found that many, especially on the asset owners’ side of things, were strikingly distant from the state-of-the-art in analytical approaches in this field."

ETF Strategy 01/02/2018

 

"(...) EDHEC Risk Institute, in collaboration with ERI Scientific Beta, surveyed 114 investment professionals between June and September 2017 about their motivation and interests with regard to equity factor strategies. It found that many, especially on the asset owners’ side of things, were strikingly distant from the state-of-the-art in analytical approaches in this field. (...) One striking finding is that a multi-factor strategy is quite often implemented in the context of passive investment. Even when the investing is dynamic, the factors are usually based on risk budget management, not an active view of expected returns. Specifically, 31% of the survey respondents who manage assets say that they use factors passively, and 46% of the respondents who own the assets say the same. On performance, although 55% of managers say that they allocate dynamically “on the basis of views on the future short-term or medium-term performance of factors,” only 15% of the owners say that. On risk management, 56% of the managers say they allocate dynamically “to manage a simple risk budget objective,” and 31% of asset managers say the same. (...)"

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