Scientific Beta

The Autumn 2022 Scientific Beta special issue of the EDHEC Research Insights supplement to Investment & Pensions Europe is now available and looks at inflation-friendly equity indices, the recent performance of rewarded factors and the role of fossil fuel divestment in financing the energy transition.

The Autumn 2022 Scientific Beta special issue of the EDHEC Research Insights supplement to Investment & Pensions Europe is now available.

It looks at how inflation risk can be targeted in equity investing and how dedicated portfolios can be built from robust exposures to inflation, with the aim of protecting investors from inflation surprises. We present two families of inflation-friendly equity indices that can be employed either in a long-term strategic allocation or as a short-term tactical tool in a satellite allocation. We also examine the small set of competitor inflation-sensitive strategies currently available in the marketplace.

In further articles, we review the performance of rewarded factors in the US market since 2020 through the lens of two important characteristics, namely intangibility and social distancing, and explore the role of fossil fuel divestment in financing the energy transition.