Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
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

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1