Scientific Beta

ThinkAdvisor: "Smart beta strategies have several “hidden risks” that providers don’t always document fully, a study by Scientific Beta found, and these risks could have a significant impact on portfolio performance. In a white paper released Tuesday, Scientific Beta suggested investors should be savvier in their use of smart beta products and recommended that the industry needs to improve its disclosure of risks."

ThinkAdvisor 28/03/2018

"(...) Smart beta strategies have several “hidden risks” that providers don’t always document fully, a study by Scientific Beta found, and these risks could have a significant impact on portfolio performance. In a white paper released Tuesday, Scientific Beta suggested investors should be savvier in their use of smart beta products and recommended that the industry needs to improve its disclosure of risks. “Although gaining explicit exposure to priced risk factors is expected to provide good long-term risk-adjusted performance, investing in these factors also exposes investors to several non-priced risks that could be important drivers of short-term risk performance,” said ERI Scientific Beta CEO Noël Amenc in a statement. He warned that managing these risks is a “key fiduciary decision” and should not be left to the index provider, which may not provide full documentation. ERI Scientific Beta is a provider of smart beta index platforms. (...)"