Pay for what you get
Smart beta index provider, ERI Scientific Beta, has launched their "pay for what you get" approach to index pricing, to disrupt the traditional fixed fee structure on assets under management (AUM).
Investors who choose the Scientific Beta Multi-Beta Multi-Strategy index from 1 June will pay zero fixed fees, and will only pay variable fees if the option outperforms the reference cap-weighted index.
ERI Scientific Beta chief executive, Noël Amenc, said "our rationale for this mandate offer is that smart beta providers' claims on the quality and robustness of their strategies should materialise in their live performance".
"ERI Scientific Beta's initiative is intended to provide consistency between the smart beta provider's revenues and the quality of its offering."
The firm said it was a pure performance fee mandate as part of its investor-friendly approach which has attracted more than US$10 billion in assets under replication for its smart beta indices in three years.
Recommended for you
Funds managers are being urged by financial advisers to improve their “outdated” education and communication about alternative funds as they actively target them towards retail clients.
GAM Investments has appointed Eric Finnell as its managing director for Australia after his predecessor left to take up the CEO role at Global X.
Fidelity International has looked internally to appoint a head of strategic sales and solutions for its Australian division, which is a newly created role for the business.
Lonsec’s deputy CIO Deanne Baker has highlighted what investment tools the firm is harnessing to mitigate the impact of geopolitical risks in its managed account offerings.
