The solutions are a result of combining Scientific Beta’s analytical expertise in single-factor equity solutions with JP Morgan’s index structuring capabilities. This enables its clients to access the improved implementation of the portfolio completeness approach.
Scientific Beta says this analytical approach is most compatible with unique frameworks designed with a concern for robustness such as using consensual factors instead of engineering new ones as well as measuring exposure through factor betas instead of using error-prone scoring mechanisms.
Institutional investors’ growing adoption of equity smart beta solutions means there is an increase in demand for measuring factor exposure and diversification.
Scientific Beta recently introduced a low-carbon filter for its flagship multi-smart-factor indices.
Arnaud Jobert, global head of investable index structuring at JP Morgan, commented: "The High Factor Intensity filter can aid investors in adjusting their portfolio within an independent platform while keeping their existing investments unaffected.
“Such filter will be key in the success when introducing this to investors, most of whom are already smart beta investors."