Scientific Beta

Citywire Wealth Manager: "EDHEC-Risk Institute has built a series of indices it has dubbed ‘smart beta 2.0’, which are free to use and designed to enable investors to shape the risk profile of a benchmark. The not-for-profit organisation has launched 30 flagship indices under the ERI Scientific Beta brand with a view to growing this to 100 over the next year, covering a range of strategies, including fundamentally-weighted, style bias and optimal liquidity."

Citywire Wealth Manager 22/05/2013

"(…) EDHEC-Risk Institute has built a series of indices it has dubbed ‘smart beta 2.0’, which are free to use and designed to enable investors to shape the risk profile of a benchmark. The not-for-profit organisation has launched 30 flagship indices under the ERI Scientific Beta brand with a view to growing this to 100 over the next year, covering a range of strategies, including fundamentally-weighted, style bias and optimal liquidity. The institute said that all of its indices are underpinned by rigorous research and back-testing and are only published after being approved by its scientific management team. ‘These smart beta 2.0 indices avoid investors being subject to the risks to which the first generation of smart beta indices are exposed, and allow them to control and choose the risks by differentiating the choice of weighting scheme from the choice of risk factors of the indices that implement those weighting choices,’ EDHEC said. ‘So, for the same diversification scheme, for example, each investment will be able to choose different risk criteria to which they wish, or do not wish, to be exposed. (…)"