ERI SciBeta indices surpass $10bn in tracking assets

Jun 3rd, 2016 | By | Category: ETF and Index News

Assets tracking the indices of smart beta index provider ERI Scientific Beta, a commercial venture of EDHEC Risk Institute, has reached the $10bn milestone. Part of these tracking assets can be attributed to a range of exchange-traded funds that harness the group’s multi-beta multi-strategy indices, including ETFs from providers such as Morgan Stanley, ETF Securities, Amundi and Global X Funds.

ERI Scientific Beta indices surpass $10bn in tracking assets

Noël Amenc, CEO of ERI Scientific Beta.

In terms of geographical distribution, as of 2 June 2016 the $10.3bn of total tracking assets are located in North America (59%), Europe (35%) and Asia-Pacific (6%).

Noël Amenc, CEO of ERI Scientific Beta, commented in a statement: “ERI Scientific Beta’s approach to smart beta index provision is based on three guiding principles: more academic rigour, more transparency, and less cost. It is extremely gratifying to see that these principles have proven to be attractive to our clients. Crucially, the academic consensus and concern for robustness that underlie the design of our smart beta indices can be seen not only in our long-term track records, but also in our live performances.”

To illustrate this point, ERI Scientific Beta highlights the results of its multi-smart-factor indices, which allocate to four smart factor indices (mid-cap, value, momentum and low volatility), and have a live track record of annualised outperformance in excess of 4.5% compared to their cap-weighted benchmark. These multi-beta indices are available for all developed world geographical regions including USA, UK, eurozone, Developed Europe ex UK, Japan, Developed Asia Pacific ex Japan, Developed ex USA, Developed ex UK and Developed Global.

Furthermore, indicating confidence in the robustness of their indices, ERI Scientific Beta has recently announced a shake-up to its fee charging arrangements. The new proposal allows investors to request a pure performance fee structure that levies fees only if the flagship Scientific Beta Multi-Beta Multi-Strategy indices has outperformed its market cap-weighted benchmark.

The range of available ETFs tracking ERI Scientific Beta indices include:

Global X Scientific Beta US (SCIU)
Global X Scientific Beta Europe (SCID)
Global X Scientific Beta Japan (SCIJ)
Global X Scientific Beta Asia ex-Japan (SCIX)

Amundi ETF Global Equity Multi Smart Allocation Scientific Beta UCITS ETF (SMRT)
Amundi ETF Europe Equity Multi Smart Allocation Scientific Beta UCITS ETF (SMRE)

ETFS Diversified-Factor U.S. Large Cap Index Fund (SBUS)
ETFS Diversified-Factor Developed Europe Index Fund (SBEU)

Morgan Stanley Scientific Beta Global Equity Factors UCITS ETF (GEF LN)
Morgan Stanley Scientific Beta US Equity Factors UCITS ETF (USEF LN)

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