Scientific Beta

IPE: "Investors could simply decide to allocate equal proportions of their portfolio to each strategy. But as many institutions are focused on the risk-return profile of their assets, allocating according to the relative risk of each factor might be a more appealing idea. For example, the Multi-Beta Multi-Strategy ERC index created by ERI Scientific Beta in partnership with Amundi, does exactly that. It combines four factors – value, momentum, low volatility and size – according to the relative risk weightings of these indices."

IPE 01/10/2018

"(...) Once investors have decided to use several investment factors, then they need to decide how to allocate the portfolio among them. As providers have become more sophisticated, the options available to investors have increased. Investors could simply decide to allocate equal proportions of their portfolio to each strategy. But as many institutions are focused on the risk-return profile of their assets, allocating according to the relative risk of each factor might be a more appealing idea. For example, the Multi-Beta Multi-Strategy ERC index created by ERI Scientific Beta in partnership with Amundi, does exactly that. It combines four factors – value, momentum, low volatility and size – according to the relative risk weightings of these indices. (...)"