Pay for what you get

ERI Scientific Beta

30 May 2016
| By Jassmyn |
image
image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

14 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 19 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 17 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 20 hours ago