Scientific Beta

IR Magazine: " New academic research from Scientific Beta, a ‘smart beta’ index provider, and published in the paper Honey, I shrunk the ESG alpha, shows that ESG funds outperform based on ‘quality’ factors rather than ESG metrics. The findings have ‘important implications for investors,’ according to Scientific Beta. More generally, the analysis provides ‘an example of how one can document outperformance where there is none: it is sufficient to omit necessary risk adjustments.’"

IR Magazine 04/05/2021

"(...) ‘Claims of positive alpha in popular industry publications are not valid because the analysis underlying these claims is flawed,’ state the authors of a new study looking at whether ESG metrics deliver outperformance as is widely claimed. New academic research from Scientific Beta, a ‘smart beta’ index provider, and published in the paper Honey, I shrunk the ESG alpha, shows that ESG funds outperform based on ‘quality’ factors rather than ESG metrics. The findings have ‘important implications for investors,’ according to Scientific Beta. More generally, the analysis provides ‘an example of how one can document outperformance where there is none: it is sufficient to omit necessary risk adjustments.’ (...)"