Scientific Beta

Ignites Europe: "France’s EDHEC Risk Institute has made it easier for investors to access its range of nearly 3,000 smart beta indices. The research institute’s ERI Scientific Beta platform, which was launched last year, comprises 2,916 customised indices, which are weighted by factors other than market capitalisation."

Ignites Europe 29/10/2014

"(...) France’s EDHEC Risk Institute has made it easier for investors to access its range of nearly 3,000 smart beta indices. The research institute’s ERI Scientific Beta platform, which was launched last year, comprises 2,916 customised indices, which are weighted by factors other than market capitalisation. To access the platform, investors initially had to pay €10,000 a year, although EDHEC’s 30 flagship indices were available to use free of charge. However, EDHEC has now scrapped this model and made access to the platform completely free. According to EDHEC, investors now only need to complete free registration to access the platform. Once registered they will be able to consult the methodology that enables each index to be replicated, as well as the back history of index compositions. EDHEC says the move is part of its campaign for “total transparency of index data”. The institute says transparency in the field of indices is “indispensable […] particularly when smart beta is involved, because the promise of outperforming cap-weighted indices is essentially based on simulated track records”. EDHEC adds: “It must be possible for these simulated track records to be challenged by the market and to do so there must be full transparency on the methodology and historical compositions.” (...)"