Scientific Beta

Risk.net: "The big losers are active managers, according to Eric Shirbini, global product specialist at financial research institute EDHEC-Risk. He is out to take on active managers through a smart beta exchange-traded fund in association with Amundi Asset Management."

Financial News 26/05/2014

"(...) For decades asset managers faced a simple choice. The expensive option was active fund management – like eating at a Michelin-starred restaurant it can be delicious (as long as the chef performs on the night) but the bill is high. Or they could use index-tracking products – the investment equivalent of eating at McDonald’s: basic fare at rock-bottom prices. There’s a huge gap between these two options. So it’s no surprise that when a new strategy comes along that could offer Michelin-starred cuisine at close to McDonald’s prices, investors have been hungry to try it. This option is known as “smart beta”, and it’s the hottest buzzword to hit asset management in decades. (...) The big losers are active managers, according to Eric Shirbini, global product specialist at financial research institute EDHEC-Risk. He is out to take on active managers through a smart beta exchange-traded fund in association with Amundi Asset Management. (...)"