Scientific Beta

Index Universe: "Scientific Beta, the index platform of the EDHEC Risk Institute, intends to launch a new range of smart beta indices in 2014 to allow institutional investors to hedge against specific risks. They will be a variety of characteristic-based, style and factor replication indices which have macro-economic filters; for example, hedging against inflation or sovereign risk."

Index Universe 26/09/2013

"(...) Scientific Beta, the index platform of the EDHEC Risk Institute, intends to launch a new range of smart beta indices in 2014 to allow institutional investors to hedge against specific risks. They will be a variety of characteristic-based, style and factor replication indices which have macro-economic filters; for example, hedging against inflation or sovereign risk. Scientific Beta launched in April this year and has over 2,400 equity indices on offer, targeting institutional investors and asset managers. Fahd Rachidy, business development executive at Scientific Beta, said: “It’s a question of increasing indices on the platform and the types of strategies and stock selection, increasing choices that investors will have when they construct their own benchmark." All Scientific Beta indices implement smart beta research from the EDHEC Risk Institute, the French business school and think tank. They are in the research and review process of offering fixed income indices too. “Our equity indices are all backed by strong academic research, and 50 years of back testing,” said Rachidy. “It’s a very well documented process." Earlier this year the platform launched its range of scientific beta indices, which charge a flat fee. This has challenged the traditional commercial model of index providers charging licensing fees, often based on a percentage share of assets under management. (...)"