Scientific Beta

ETF Strategy: "Investors will be able to request a pure performance fee structure that levies charges only if the index has actually outperformed the cap-weighted benchmark."

ETF Strategy 31/05/2016

"(...) Smart beta index provider ERI Scientific Beta has announced a fresh approach to index pricing that may disrupt the traditional model of fixed fees on assets under management. The offshoot of EDHEC Risk Institute will launch a new pricing scheme that enables investors to relate their fees directly to smart beta index performance. Investors will be able to request a pure performance fee structure that levies charges only if the index has actually outperformed the cap-weighted benchmark. This option will be made available from 1 June 2016, whereby those who subscribe to the alternative fee structure will pay zero fixed fees and will only pay variable fees if the flagship Scientific Beta Multi-Beta Multi-Strategy indices outperform their reference cap-weighted index. (...)"