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
Selfwealth has provided an update on the status of its scheme implementation deed with Bell Financial Group as well as whether rival bidder Svava remains in the picture.
Magellan Financial Group has reported its first half FY25 results while appointing a new chief financial officer and promoting Sophia Rahmani to chief executive.
Schroders Australia has launched two active ETFs and plans to further expand its listed range over the year ahead.
Platform Netwealth has reported its financial results for the first half of FY25, reporting an 80 per cent increase in net flows, with its CEO viewing a “huge opportunity” from private assets.
