Scientific Beta

Legal & General Investment Management America, Inc. announced on 5 December, 2016 that its US index fund management business will be launching Scientific Beta Multi-factor strategies using commingled funds designed for institutional investors such as defined benefit, defined contribution, Taft-Hartley and public plans.

Legal & General Investment Management America, Inc. ("LGIMA") announced on 5 December, 2016 that its US index fund management business will be launching Scientific Beta Multi-factor strategies using commingled funds designed for institutional investors such as defined benefit, defined contribution, Taft-Hartley and public plans.

LGIMA will be launching four funds, including the global, US, developed ex-US and emerging market components of the Scientific Beta Multi-factor indices. These indices will initially have exposure to the low volatility, value, momentum and size factors and will use innovative weighting methodologies that seek to improve diversification and risk-adjusted returns relative to market-cap weighted indices. 

"It's a perfect marriage of LGIMA's commingled fund platform that emphasizes a high level of governance, transparency and flexibility," said Greg Behar, Head of Index Strategy at LGIMA. "This marks the first time that US investors will be able to access Scientific Beta's academically-driven smart beta 2.0 methodology in a collective investment trust designed for institutional investors."  

Noël Amenc, CEO of ERI Scientific Beta, commented "We are delighted that LGIMA has chosen to launch an institutional commingled fund offering in North America that is based on ERI Scientific Beta indices. Our ambition is to serve North American asset owners with the most academically-proven and transparent smart factor and multi smart factor indices, and this new offering from LGIMA considerably expands the range of choices that institutional investors have at their disposal."