Nice, France, June 23, 2016 -- During a special 20-minute webinar for the press taking place on Friday, July 1, 2016 at 3:30pm Central European Time, Felix Goltz, Head of Applied Research, EDHEC-Risk Institute and Research Director, ERI Scientific Beta, will be presenting major new research from EDHEC-Risk Institute on misconceptions in smart beta investing.
The research reviews ten common but mistaken claims about smart beta that present risks for investors and sheds light on underlying issues. The misconceptions relate to the sources of outperformance of smart beta; the investability hurdles for smart beta strategies; and specific smart beta index design choices.
As one of the strongest growth areas in investment management over the past decade, smart beta strategies have drawn criticism from providers of both traditional active investment and traditional passive investment. Smart beta providers are not only responding to such criticism, but have been vocal about the benefits of their respective approaches, without necessarily agreeing with each other.
Such debates have the potential to clarify the issues at hand by discussing the facts. Unfortunately, however, by often recurring to superficially convincing arguments that may not align well with the facts, such debates have also led to the misconceptions in question.
Topics that will be covered during the webinar include:
- Factor crowding, cheaper alphas, rebalancing effect, domination of value and mid-cap bias, liquidity issues, etc.: What is true and false when it comes to smart beta?
- What are the consequences of smart beta misconceptions in terms of smart beta performance and risk?
- How can the misconceptions be addressed?
To register for the "Ten Misconceptions in Smart Beta Investing" webinar, please click here.
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: [email protected], Web: www.scientificbeta.com.
Press_Release_Ten_Misconceptions_Smart_Beta http://hugin.info/157174/R/2022806/751513.pdf
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