Scientific Beta

The supposed benchmark-beating powers of ESG have more to do with investors’ exposure to well-known factors rather than any sustainable secret sauce, according to quant house Scientific Beta.

The Paris-aligned benchmarks that an increasing number of global investors now subscribe to disincentivise activities that might actually help the energy transition, according to index provider Scientific Beta.

Academically driven global index provider Scientific Beta has taken strides in its commercialisation with its latest offering. It has also prompted the question: is there a point where smart beta becomes dumb alpha?