Bringing you live news and features since 2006 


Scientific Beta sees strong growth in assets tracking its smart beta indices


Scientific Beta has announced that assets tracking its smart beta indices reached USD59.2 billion at December 31, 2019, against a 2018 figure of USD43 billion, an increase of USD16 billion, corresponding to year-on-year growth of 37 per cent.

Noël Amenc, CEO of Scientific Beta, says: “We are proud that the growth in Scientific Beta’s assets under replication has been one of the strongest in the smart beta market not only this year but over the last five years. In a market environment that has been challenging for factor strategies, we believe that our transparent and research-based approach to smart beta indexing has been the source of our clients’ trust in us.”

The year 2019 saw several innovations from Scientific Beta. The firm released on its platform enhanced Environmental, Social and Governance (ESG) and climate risk reporting to assist investors in meeting the challenges of incorporating ESG dimensions into passive investment management. 

Scientific Beta also introduced a new off-the-shelf Low Carbon option for all its flagship multi-smart-factor indices. This filter reduces the carbon footprint of all of Scientific Beta’s multi-factor indices by almost 50 per cent. 

The firm is now offering an ESG option for all of its indices, designed to enable investors to benefit from the performance of Scientific Beta’s High Factor Intensity (HFI) Multi-Beta Multi-Strategy (MBMS) indices while upholding ESG norms and reducing exposure to companies with high exposure to ESG risks. 

A new service from Scientific Beta is the Scientific Beta Factor Analytics Services (SB FAS) offered to asset owners who wish to improve the diversification of their global equity allocation. SB FAS is part of a new factor investing approach, which, instead of ignoring the existing portfolio investments and considering each new investment as a standalone, offers a completeness or portfolio overlay approach, the firm says. 

Recently, Scientific Beta introduced the Maximum Volatility Protection (MVP) option, which, added to Scientific Beta’s High Factor Intensity (HFI) Low Volatility index, is designed to provide a highly defensive offering when needed with a reduction in the index’s market beta in difficult times and very strong protection of the capital. 

Scientific Beta writes that it has, for several years, offered risk control options such as sector neutrality, country neutrality or market beta adjustment on its flagship multi-factor indices to correct for these risks. Scientific Beta is now offering a new risk control option called Historical Volatility Adjustment (HVA) that controls for volatility, manages volatility through time and targets the historical volatility of the multi-factor index, thereby reconciling factor investing and reduction of these risks.

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by