Scientific Beta

ETF Strategy: "An important driver of the firm’s success has been the favourable performance of its flagship “multi-beta multi-strategy” indices which have outperformed their market-cap-weighted benchmarks since inception. Offered as both four-factor and six-factor combinations, the indices aim to maximize the diversification of strategy-specific risks by combining a range of popular diversification strategies."

ETF Strategy 24/01/2020

"(...) Singapore Exchange (SGX) has announced the acquisition of smart beta index specialist Scientific Beta in a move that aims to scale up its own data and index business. According to the terms of the agreement, SGX will pay €186 million in cash for a 93% stake in Scientific Beta. Established in December 2012 by EDHEC-Risk Institute, an affiliate of EDHEC Business School, Scientific Beta is headquartered in Singapore with offices in France, the UK, and the US. The company provides investable smart beta indices that draw upon EDHEC Risk Institute’s research in portfolio construction and risk allocation. The indices employ various strategies, such as alternative weighting methods and multi-factor overlays, to achieve targeted risk and reward objectives. Assets tracking Scientific Beta indices have expanded rapidly in recent years, growing more than ten times in under four years to reach $54.7 billion, as of 30 September 2019. An important driver of the firm’s success has been the favourable performance of its flagship “multi-beta multi-strategy” indices which have outperformed their market-cap-weighted benchmarks since inception. Offered as both four-factor and six-factor combinations, the indices aim to maximize the diversification of strategy-specific risks by combining a range of popular diversification strategies. (...)"