Scientific Beta

Bloomberg: "EDHEC-Risk Institute, a business school with offices from Singapore to London, has said the industry must improve transparency in their index selection. The school promotes about 3,000 smart-beta indexes."

Bloomberg 05/03/2014

"(...) EDHEC-Risk Institute, a business school with offices from Singapore to London, has said the industry must improve transparency in their index selection. The school promotes about 3,000 smart-beta indexes. “The products available are not fair to investors, providers don’t fully disclose where the risks are,” Eric Shirbini, global-product specialist for EDHEC’s ERI Scientific Beta team in London, said in an interview. “They are new and growing in significance, and that is why we put so much emphasis. Smart beta is here to stay, so it is very important for people to understand the risks.” Many smart-beta strategies are based on formulas that are not publicized, Shirbini said. (...)"