Mon, May 21, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

As AI advances, index products could get 'smarter'

Friday, September 01, 2017

Bailey McCann, Opalesque New York:

As investors line up behind "rules-based" investment products like smart beta ETFs and systematic equities funds, many market participants have rushed to come out with products that lean heavily on machine learning and big data. Several quant shops have announced their plans to build proprietary data sets in order to mine them for trading ideas or a possible edge in the market. According to Matteo Andreetto, CEO of STOXX, a provider of index products, machine learning may also make indexes 'smarter'.

"I think we're in a new era of indexing," Andreetto tells Opalesque in an interview. "There are better companies in indexes now and the products themselves are more rigorous. Investors have more options about how they can use index products in their portfolios."

Andreetto joined STOXX in 2014 and spearheaded an expansion effort at the index provider. Under his leadership STOXX has added to its product suite of 100 indices that address ESG issues in portfolios. According to Andreetto, investors are increasingly looking for more options to screen for ESG factors and now that companies are responding with better disclosures, it is possible to use that data to create tailored indexes.

STOXX also opened offices in Australia and Hong Kong. With the new offices, STOXX, which was primarily a European index provider, will now be looking at ways to build a more global portfolio of products.

Andreetto also sees a possibility ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. News Briefs - Warren Buffett: Target date funds aren't the way to go, Cambridge Analytica could be reborn under a different name[more]

    Warren Buffett: Target date funds aren't the way to go Planning for retirement can be complicated and stressful. This is why target date funds - funds that are managed based on when you expect to retire - are so attractive. Over time, the balance of stocks, bonds and cash evolve automati

  2. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  3. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven