Assets replicating Scientific Beta's multi-factor indices break through the USD 12bn barrier
(Thomson Reuters ONE) -
Scientific Beta's Multi-Beta Multi-Strategy (MBMS) Low Carbon offering now
exceeds USD 2 billion in assets under replication
ERI Scientific Beta, the smart beta index provider offshoot of EDHEC Risk
Institute, has announced that assets tracking its smart beta indices had reached
USD 12.3bn as of December 31, 2016. In terms of geographical distribution, these
assets come from North America (60%), Europe (35%) and Asia-Pacific (5%).
Compared to December 31, 2015, this amount of assets under replication
represents growth of 45%.
Among the drivers of this growth we can cite the success of the launch in 2016
of an offering reconciling a low carbon objective and multi-smart-factor
portfolio construction, since this new series of multi-beta multi-strategy low
carbon indices now represents more than USD 2 billion in assets under
replication.
Another driver of the growth in assets replicating Scientific Beta indices is
their performance. The Scientific Beta multi-smart-factor indices have a live
track record that shows annualised outperformance of over 2% compared to their
cap-weighted benchmark.(1)
Commenting on the announcement that assets tracking Scientific Beta indices had
broken through the USD 12bn mark, Noël Amenc, CEO of ERI Scientific Beta, said,
"Scientific Beta's success over the past four years is due in no small part to
the fact that its investment philosophy has proven attractive to major
institutional investors throughout the world. This investment philosophy is
based on three major principles: the importance of controlling the risks of the
investment, because the alternative choice to the cap-weighted index means that
one takes different risks, and these risks must be controlled; the essential
diversification of the specific risks of the benchmark to produce robust risk-
adjusted performance and avoid good long-term investment ideas being called into
question by poor short-term performance due to poor diversification; and the
concern for robustness, which implies that the design of an index must rely on
academic consensus and not on innovations drawn from optimising the returns or
the in-sample characteristics of the strategy proposed."
(1)The average live outperformance across all Scientific Beta developed regions
of Scientific Beta Multi-Beta Multi-Strategy (Equal Weight and Relative Equal
Risk Contribution) indices is 2.06% and 2.20% respectively. This live analysis
is based on daily total returns in the period from December 20, 2013 (live date)
to December 31, 2016, for the following developed world regions - USA, Eurozone,
UK, Developed Europe ex UK, Japan, Developed Asia Pacific ex Japan, Developed ex
UK, Developed ex USA and Developed. The benchmark used is a cap-weighted
portfolio of all stocks in the respective Scientific Beta universes.
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As part of its policy of transferring know-how to the industry, EDHEC-Risk
Institute has set up ERI Scientific Beta. ERI Scientific Beta is an original
initiative which aims to favour the adoption of the latest advances in smart
beta design and implementation by the whole investment industry. Its academic
origin provides the foundation for its strategy: offer, in the best economic
conditions possible, the smart beta solutions that are most proven
scientifically with full transparency of both the methods and the associated
risks.
ERI Scientific Beta, 1 George Street, #07-02, Singapore 049145. For further
information, please contact: contact(at)scientificbeta.com, Web:
www.scientificbeta.com.
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Press_release_AUM_2016:
http://hugin.info/157174/R/2072342/778791.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: EDHEC-Risk Institute via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 19.01.2017 - 14:00 Uhr
Sprache: Deutsch
News-ID 518747
Anzahl Zeichen: 4554
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Kategorie:
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"Assets replicating Scientific Beta's multi-factor indices break through the USD 12bn barrier"
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