Scientific Portfolio Technology
for Equity Investors
We provide investors with the technology to independently analyze and construct equity portfolios
Use Cases
Leverage Scientific Portfolio’s capabilities and follow along with a practical use case that is designed to extract meaningful insights for a specific investment objective.
This documentation is exclusively available to platform users. Request access to the Scientific Portfolio platform now to get started.
Manage the tradeoff between climate impact and financial objectives
Pursue a climate impact objective by first conducting an independent review of existing low carbon strategies and then showing how analytics can help infer insights by testing a customized low carbon portfolio that balances out extra-financial and financial considerations.
Detect and quantify transition risk in any investment strategy
Independently analyze the risks underpinning a traditional investment strategy such as a defensive mix of low volatility and high dividend. Identify an outsized exposure to climate transition risk and use our interactive analytics to identify insights on how to reduce the transition risk exposure.
Evaluate adherence to stated ESG objectives while uncovering unintended financial consequences
Review the stated objectives of an ESG index and use the Scientific Portfolio platform to independently assess whether the index fulfills its objectives. Uncover any unintended financial consequences resulting from the pursuit of extra-financial ESG objectives.
Go beyond backtested performance to analyze a factor-based strategy
Explain the ex-post performance and risk of smart beta investment strategies (both from an absolute perspective and relative to a cap-weighted benchmark) and independently assess their ex-ante risk-adjusted return potential.
Latest Publications
Decomposition of Greenhouse Gas Emissions Associated With an Equity Portfolio
This paper introduces a decomposition method inspired by those used in environmental economics which enables to disentangle five factors that influence portfolio emissions.
Remember to Diversify Your Active Risk: Evidence from US Equity ETFs
In this article, we estimate the level of risk diversification for a universe of US equity ETFs and observe the benefits of diversification for budgeting of active risk relative to a cap-weighted benchmark.
Look Up! A Market-measure of the Long-term Transition Risks in Equity Portfolios
In this paper, we propose a Climate Transition risk factor that captures both the sectoral and intra-sectoral dimensions of transition risks by relying on the climate-policy relevant sectors classification and on GHG emissions intensity.
Key Functionalities
- Diversification
- Climate Transition risk
- Risk budgeting
- Macro regime sensitivity
- Factor Analysis
- ESG Impact
- Climate Impact
Gauge the balance across long-term fundamental, rewarded risks while checking for short-term risk concentrations and idiosyncrasies.
Frequently Asked Questions
Who is Scientific Portfolio?
Scientific Portfolio is the latest commercial venture by EDHEC Business School (EDHEC), one of Europe’s top business schools.
We have assembled a team with a broad range of expertise and backgrounds, including financial engineering, computer science, sustainable and climate finance, and institutional portfolio and risk management.
We proudly carry EDHEC’s impactful academic heritage and aspire to provide investors with the technology they need to independently analyze and construct equity portfolios from both a financial and extra-financial perspective.
What makes Scientific Portfolio unique?
We offer a conceptual, science-driven investment framework for integrating sustainability and climate alignment objectives into financial decisions.
We provide access to a comprehensive platform for investors to evaluate the impact of a sustainable policy on financial risks.
We deliver an academically-minded Knowledge Center that both assists and empowers investors on their learning journey.
What are the benefits of Scientific Portfolio for Institutional Asset Owners?
Our platform endeavors to adopt a neutral point of view based on academic consensus and empower Institutional Asset Owners so they can analyze an investment strategy and infer actionable insights without depending on the commercial provider of the strategy.
More specifically, we help investors verify the sustainability of an investment solution that is offered to them and detect and evaluate the unintended financial risks caused by a sustainable investment policy.
For example, platform users can assess the consistency of a climate impact strategy, get a feel for the tradeoff between carbon intensity and tracking error, while reviewing their factor exposures and detecting risk concentrations in their portfolio. All independently.
What are the benefits of Scientific Portfolio for Asset Managers?
Our platform endeavors to adopt a neutral point of view based on academic consensus and help Asset Managers enhance and elevate their dialogue with end investors who wish to analyze an investment strategy without fully depending on the commercial provider of the strategy.
More specifically, we help managers demonstrate the sustainability of an investment solution and highlight the financial risk consequences of a sustainable investment policy.
For example, platform users can assess the consistency of a climate impact strategy, get a feel for the tradeoff between carbon intensity and tracking error, while reviewing their factor exposures and detecting risk concentrations in their portfolio. All independently.
What are the benefits of Scientific Portfolio for Wealth Managers?
Our platform endeavors to adopt a neutral point of view based on academic consensus and assist Wealth Managers so they can analyze an investment product without depending on the commercial provider of the strategy.
More specifically, we help advisors verify the sustainability of an investment solution that is offered to them and detect and evaluate the unintended financial risks caused by a sustainable investment policy.
For example, platform users can assess the consistency of a climate impact strategy, get a feel for the tradeoff between carbon intensity and tracking error, while reviewing their factor exposures and detecting risk concentrations in their portfolio. All independently.