Scientific Beta

ETF Stream: "Investors disillusioned with the performance of active funds and moving into smart beta may end up faced by similar quandaries over the movement of goalposts. Such is the conclusion of a recent report from analysts at Scientific Beta which suggests the frequent chopping and changing of index methodologies and lack of transparency exacerbates the risk to investors of relaying on strategies which have spurious records."

ETF Stream 31/03/2019

"(...) Investors disillusioned with the performance of active funds and moving into smart beta may end up faced by similar quandaries over the movement of goalposts. Such is the conclusion of a recent report from analysts at Scientific Beta which suggests the frequent chopping and changing of index methodologies and lack of transparency exacerbates the risk to investors of relaying on strategies which have spurious records. The authors of the report, Noël Amenc, chief executive at Scientific Beta, research director Felix Goltz and quant analysts Mikheil Esakia and Marcel Sibbe, point out that one of the most common moves by index providers is to “enhance’ their factor definitions. “When assessing the live performance of an index, it will always be possible to identify a better- performing factor definition for the relevant time period,” the analysts write. (...)"