Scientific Beta

Super Review: "“Super funds are essentially walking a tightrope. YFYS performance testing imposes tracking error targets that tether them to high-emitting Australian companies, hindering their ability to achieve both satisfactory returns and an acceptable rate of decarbonisation,” said Michael Aked, senior investment strategist at Scientific Beta."

Super Review 20/09/2023

"(...) Scientific Beta, which launched in Australia and New Zealand in September 2022, is a global provider of advanced index solutions designed to help asset managers and institutions understand and invest in smart factor and ESG equity strategies. Established by the EDHEC Risk Institute, part of EDHEC Business School, it brings its established track record in Europe to provide guidance to Australian super funds. According to the firm, Australian super funds have made “ambitious commitments” to align their investments with net-zero objectives. However, they continue to allocate significant portions of their members’ funds to high-carbon Australian and international companies without making clear to these companies they may divest if they do not decarbonise fast enough. (...) “Super funds are essentially walking a tightrope. YFYS performance testing imposes tracking error targets that tether them to high-emitting Australian companies, hindering their ability to achieve both satisfactory returns and an acceptable rate of decarbonisation,” said Michael Aked, senior investment strategist at Scientific Beta. (...)"