What Asset Managers Don’t Want You to Know About Their Factor Funds

Press review Institutional Investor "(...) "When it comes to smart beta funds, asset managers and index providers are straying far from the well-recognized factors that have decades of academic research supporting them, according to new research from Scientific Beta, a smart beta index provider that’s funded by EDHEC-Risk Institute. Felix Goltz, research director at Scientific Beta and head of applied research at EDHEC-Risk Institute — an investment-focused, academic think tank — said the problem with managers and index providers finding factors that supposedly lead to an investment reward is that third parties have not replicated the results. This can lead to unintended exposures and a misunderstanding around the associated investment risks of those factors." (...) Copyright Institutional Investo https://www.institutionalinvestor.com/article/b1ddsmvtsk8gjq/What-Asset-Manager… 2019