Scientific Beta

Pensions & Investments: "In a separate paper, Noel Amenc, London-based professor of finance at EDHEC Business School, writes that the first generation of smart-beta benchmarks is generally constructed from the stocks' economic characteristics and “do not distinguish the stock-picking methodology from the weighting methodology.” However, the second generation of smart beta “clearly” distinguishes between the two phases, enabling “the investor to choose the risks to which he does or does not wish to be exposed,” Mr. Amenc wrote."

Pensions & Investments 10/12/2012

"(...) In a separate paper, Noel Amenc, London-based professor of finance at EDHEC Business School, writes that the first generation of smart-beta benchmarks is generally constructed from the stocks' economic characteristics and “do not distinguish the stock-picking methodology from the weighting methodology.” However, the second generation of smart beta “clearly” distinguishes between the two phases, enabling “the investor to choose the risks to which he does or does not wish to be exposed,” Mr. Amenc wrote. Data from EDHEC-Risk Institute reveal about 40% of investors surveyed in Europe and North America already adopted smart-beta indexing strategies. Along with the added complexity, there also is a need for more informed decisions on the different risk factors to which investors are exposed, as well as a clearer understanding of the implementation process, Mr. Amenc wrote in “Beyond Smart Beta Indexation,” which was published last month. (...)"