Scientific Beta

Asian Private Banker: "“The idea is that investors can substitute a portion of the traditional 60/40 portfolio with allocations to a dynamic defensive equity solution, which has the same level of volatility but provides better risk-adjusted returns,” said Shirbini. The dynamic defensive equity solution is one of the two pillars of the business. It is mandated to offer risk-adjusted returns by adding to a market-cap weighted index extra risk premia, such as “value” or “low volatility”. "

Asian Private Banker 20/04/2021

"(...) Ultra-low rates have pushed Asia’s HNWIs in pursuit of yields further into the territory of higher-risk fixed-income. This will fundamentally change the fixed income component in a traditional 60/40 portfolio, according to Singapore Exchange-owned index provider Scientific Beta. It argued that investors should look elsewhere instead for a safety net in their multi-asset portfolios. (...) “The idea is that investors can substitute a portion of the traditional 60/40 portfolio with allocations to a dynamic defensive equity solution, which has the same level of volatility but provides better risk-adjusted returns,” said Shirbini. The dynamic defensive equity solution is one of the two pillars of the business. It is mandated to offer risk-adjusted returns by adding to a market-cap weighted index extra risk premia, such as “value” or “low volatility”. In addition, the firm intends to build an ESG-focused solution that reduces an investors’ carbon exposure. (...)"