Scientific Beta

Benefits and Pensions Monitor: "OPTrust is investing in an equity portfolio that is benchmarked to the Scientific Beta Developed Multi-Beta Multi-Strategy Relative Volatility (90 per cent) Solution. (...) Noël Amenc, CEO of ERI Scientific Beta, says, “The beauty of ERI Scientific Beta’s dynamic defensive solution is that it is defensive when needed. This is reflected in the dynamic nature of the approach”."

Benefits and Pensions Monitor 12/07/2016

"(...) OPTrust is investing in an equity portfolio that is benchmarked to the Scientific Beta Developed Multi-Beta Multi-Strategy Relative Volatility (90 per cent) Solution. One of the characteristics of traditional defensive strategies such as minimum or low volatility is that they are concentrated in low volatility or low beta stocks. Therefore, while over a very long period these defensive strategies outperform cap-weighted indices, over the short term, in a bull market, they could seriously underperform. It is in this context that researchers from EDHEC-Risk Institute and ERI Scientific Beta have developed an approach in terms of multi-factor dynamic defensive strategies. The solution indices are no longer exposed to low volatility factors alone, but obtain a significant reduction in portfolio volatility through factor diversification. Moreover, these new strategies have a variable defensive bias, which corresponds to dynamic allocation between smart factor indices based on market volatility. Noël Amenc, CEO of ERI Scientific Beta, says, “The beauty of ERI Scientific Beta’s dynamic defensive solution is that it is defensive when needed. This is reflected in the dynamic nature of the approach”. (...)"