Scientific Beta

Citywire Wealth Manager: "The EDHEC-Risk Institute is pioneering a new approach to beta investing by allowing investors to choose and control the risk of benchmarks on its new platform, ERI Scientific Beta. The new approach, which EDHEC has dubbed Smart Beta 2.0, will give total transparency on the methods and composition of benchmarks, while allowing investors to choose and control the risks of their investments."

Citywire Wealth Manager 29/04/2013

"(…) The EDHEC-Risk Institute is pioneering a new approach to beta investing by allowing investors to choose and control the risk of benchmarks on its new platform, ERI Scientific Beta. The new approach, which EDHEC has dubbed Smart Beta 2.0, will give total transparency on the methods and composition of benchmarks, while allowing investors to choose and control the risks of their investments. Investors will also be given free information on 30 flagship ERI indices and institutional investors replicating them will not be charged a fee on assets under management. Tomas Franzen, chair of EDHEC's international advisory board, said: "The Scientific Beta initiative is a major mover of the whole concept of using more appropriate equity indices, or rather, better constructed equity portfolios. "The initiative is also a very good example of the general need for solutions rather than products in investing." By making use of Smart Beta 2.0, investors will be able to control and choose risk by differentiating their choice of weighting from a selection of indices. This means they will be able to benefit from new forms of index without being exposed to value, smaller company or liquidity risk factors, as is often the case with first generation commercial offerings. (…)"