Scientific Beta

Investment News New Zealand: "Even the most carefully designed institutional portfolios tend to fall out-of-whack eventually, according to Scientific Beta, in a slow-motion shift dragging investment strategies off-course."

Investment News New Zealand 06/07/2025

"(...) Even the most carefully designed institutional portfolios tend to fall out-of-whack eventually, according to Scientific Beta, in a slow-motion shift dragging investment strategies off-course.

In a new paper, the specialist index firm says ever-changing market and investment crosswinds inevitably skew portfolio exposures to factors, geographies or other unintended risks and adrift of target.

The well-documented rise of the 'magnificent seven' technology stocks that now account for about 40 per cent of the Nasdaq index, for instance, has long seen investors fretting about broad capital-weighted benchmark concentration risk. (...)"