Scientific Beta

Risk.net: "EDHEC-Risk Institute is competing with its own range of multi-factor products under the Scientific Beta Multi-Strategy brand, one of which – the Scientific Beta Developed Multi-Beta Multi-Strategy index – was licensed for use in a range of Amundi ETFs last summer, which today have combined assets under management of $470 million."

Risk.net 02/10/2015

"(...) EDHEC-Risk Institute is competing with its own range of multi-factor products under the Scientific Beta Multi-Strategy brand, one of which – the Scientific Beta Developed Multi-Beta Multi-Strategy index – was licensed for use in a range of Amundi ETFs last summer, which today have combined assets under management of $470 million. Total assets tracking EDHEC strategies across institutional and retail stand at $8 billion. (...) Providers have been experimenting with different weighting schema. EDHEC's so-called smart weighting approach offers five choices of weighting methodology – including equal weighting and an efficient volatility weighting – as well as a diversified multi-strategy approach that allocates stock weighting based on the average of these five separate methodologies. "It gives you a kind of double-diversification effect," says Goltz. "If you use any of these weighting schemes, you will have a well-diversified portfolio, but using the multi-strategy is superior because each individual scheme relies on different assumptions and none of them is perfect." (...)"