Scientific Beta

Financial News: "Noël Amenc, chief executive at smart beta index provider ERI Scientific Beta, has said that smart beta can be seen as a “low-cost commoditisation” of active management."

Financial News 20/07/2015

"(...) Smart beta is often accused of eating active fund managers’ lunch. In June 2015, a report by analysts Cerulli Associates found institutions turning to smart beta ETFs because of dissatisfaction with active managers’ performance. Jennifer Muzerall, senior analyst at Cerulli, said: “Smart beta is being developed as an alternative to active management, in the sense that it is rules-based, still having elements of passive, but can offer more downside risk protection because it weights by factors other than market capitalisation.” Noël Amenc, chief executive at smart beta index provider ERI Scientific Beta, has said that smart beta can be seen as a “low-cost commoditisation” of active management. (...)"