Scientific Beta

Asia Asset Management: "While non-factor risks are often implicit by-products of factor strategies, Scientific Beta’s smart factor indices enable investors to make explicit choices on risk control options, such as sector, market beta or volatility risks. These options make it possible to respond to important fiduciary choices of investors or their asset managers. Such a wealth of choices is necessary to address each investor’s objectives and constraints. A single optimal solution does not exist because not all investors are identical."

Asia Asset Management May 2021

Article by Dimitris Korovilas, investment product specialist at Scientific Beta

"(...) Smart factor indices offer exposure to long-term well-rewarded risk factors, those supported by strong empirical evidence and economic rationale. In addition, the indices ensure a good reward for these exposures through diversification of unrewarded (specific) risk. An ESG or low carbon option can be added to enable a consistent and effective investor engagement policy to be implemented, without mixing up with the two financial objectives mentioned above. While non-factor risks are often implicit by-products of factor strategies, Scientific Beta’s smart factor indices enable investors to make explicit choices on risk control options, such as sector, market beta or volatility risks. These options make it possible to respond to important fiduciary choices of investors or their asset managers. Such a wealth of choices is necessary to address each investor’s objectives and constraints. A single optimal solution does not exist because not all investors are identical. (...)"