Scientific Beta

Citywire Selector: "A new study suggests investors aren’t approaching beta particularly smartly. The report by the EDHEC-Risk Institute last month asked professional investors how much time they spent evaluating traditional passive investments, active managers, and smart beta or systematic factor investments. The respondents spent 21% and 23% of their time evaluating traditional passive and active managers, respectively, but only 15% of their time on smart beta."

Citywire Selector 04/10/2016

"(...) Beta isn’t smart or dumb, but it can be bought in either fashion. A new study suggests investors aren’t approaching beta particularly smartly. The report by the EDHEC-Risk Institute last month asked professional investors how much time they spent evaluating traditional passive investments, active managers, and smart beta or systematic factor investments. The respondents spent 21% and 23% of their time evaluating traditional passive and active managers, respectively, but only 15% of their time on smart beta. (...) ‘In the end, the mismatch between investors’ great expectations in smart beta, and the lack of resources to carry out comprehensive and due-diligence analysis on smart-beta products, is a thorny issue,’ warned EDHEC-Risk. ‘The asymmetry of information between smart-beta investors and smart-beta providers may lead to many misconceptions, all the more that smart-beta providers may be unscrupulous.’ (...)"