Scientific Beta

Financial Investigator: "For the green indices produced by ERI Scientific Beta, the idea is offer access to short and medium-term outperformance by using consensual results from financial research."

Financial Investigator 23/02/2016

"(...) EDHEC Risk Institute's approach can be distinguished from numerous approaches that, over the long term, hope to outperform the stock markets through the higher returns of shares in firms that have a better carbon footprint, because these firms are supposedly less affected by the increasing cost of fossil fuels and the tons of carbon emitted, but that, in the short and medium term, aim to produce performance that is fairly similar to that of traditional stock market indices. For the green indices produced by ERI Scientific Beta, the idea is offer access to short and medium-term outperformance by using consensual results from financial research. The “green” premium, which has not yet been scientifically and empirically demonstrated, will be able to play out as a long-term complement to performance, but Scientific Beta's green and smart beta indices already produce performance by relying on the consensual state-of-the-art in academia in the area of factor investing and portfolio diversification. (...)"