Scientific Beta

Money Management: "Smart beta researcher and strategy provider, ERI Scientific Beta, stated while academic research has been conducted on the application of factors to index investing, a number of providers were creating their own factors and applying them inconsistently to funds and in contrast to generally accepted principles."

Money Management 11/09/2015

"(...) Investors have been warned to examine the criteria used by fund managers involved with factor investing, stating that some of the strategies only work well in the short-term or have only shown good results in back-testing and not actual current market conditions. Smart beta researcher and strategy provider, ERI Scientific Beta, stated while academic research has been conducted on the application of factors to index investing, a number of providers were creating their own factors and applying them inconsistently to funds and in contrast to generally accepted principles. In a paper titled ‘Pimp My Factor? A Critical Comparison of Factor Definitions', ERI Scientific Beta, stated that some factor investing managers were "not only inconsistent with factor definitions in the academic literature, but are also inconsistent concerning the factor definitions across their own indices". (...)"