Elston Consulting has launched the Elston Strategic Beta indices – a range of multi-asset smart beta indices launched for institutional investors – in conjunction with index provider Solactive.
To date smart beta has typically focused on reconstituting single asset class indices using a factor-based approach or an alternative weighting scheme. Elston Strategic Beta is innovative as it offers outcome-oriented asset allocation strategies that are diversified across global asset classes, using a risk-based approach.
The investment process provides a quantitative, methodical, and objective approach to creating dynamic diversified growth strategies that isolate and capture shifting risk premia across asset classes.
The strategies are delivered using a pool of liquid ETFs that track indices of global asset classes that are selected and combined using Elston’s proprietary quantitative models.
The strategies are ‘long-only’ and are constructed using liquid, physically-backed ETFs available from leading ETF providers.
Maria Zahn, Head of Institutional Clients, Elston Consulting, says: “We are glad to bring innovative solutions to market for institutional clients. While there is growing popularity for low-cost ETFs, we think the real value is from combining them intelligently to deliver on client outcomes. We are delighted to be working with Solactive to bring this vision to market.”
Ranye Lu, Quant Research Consultant at Elston Consulting, says: “The investment theory and approach is similar to the risk-based approach of a diversified growth strategy. By using an index-based approach, the characteristics of the strategy should be comparable, with the certainty of lower costs. We believe this is a simpler way of delivering on an outcome whilst enabling better value for money.”
Steffen Scheuble, CEO of Solactive, says: “We welcome the opportunity to partner with Elston Consulting for the launch of the Elston Strategic Beta index series.
Smart Beta index linked products have gained a lot of traction over the past few years, and Elston’s innovative approach aims to provide institutional investors with a straightforward way of accessing systematic rules-based diversified multi-asset strategies.”