Scientific Beta

Financial Investigator: "In a new white paper entitled "Misconceptions and Mis-selling in Smart Beta: Improving the Risk Conversation in the Smart Beta Space," Scientific Beta has warned of the dangers of the main hidden risks that can be important drivers of short-term performance in the smart beta space, namely market risk bias, macroeconomic risks, and sector/geographical risks."

Financial Investigator 27/03/2018

"(...) In a new white paper entitled "Misconceptions and Mis-selling in Smart Beta: Improving the Risk Conversation in the Smart Beta Space," Scientific Beta has warned of the dangers of the main hidden risks that can be important drivers of short-term performance in the smart beta space, namely market risk bias, macroeconomic risks, and sector/geographical risks. Decisions on selecting a smart beta strategy are often driven more by looking at fees and past performance than by analysing risks. As a result, the risk implications of smart beta are not fully understood. In particular, smart beta strategies not only deliver explicit factor exposures (such as value, momentum, etc.) but also lead to implicit exposures. (...)"