Tue, Mar 31, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

FTSE licenses Old Mutual Global Index Trackers to use alternatively weighted indices

Monday, March 12, 2012
Opalesque Industry Update - FTSE Group announces the licensing of the globally established FTSE RAFI Index Series and the recently launched FTSE EDHEC-Risk Efficient Index Series, to Old Mutual Global Index Trackers. The adoption of these indices highlights investors increasing interest in alternatively-weighted sources of passive investment, and FTSE’s fast growing index range within this space.

The choice of alternatively-weighted indices reinforces investor demand for new and innovative tools to capture systematic sources of return, diversify core portfolios and complement existing market-capitalised strategies.

Launched over six years ago and created in partnership with Research Affiliates the FTSE RAFI Index Series, introduced a new approach to indexing and forms the basis for a range of index-linked products globally. Rather than using market capitalisation, constituents are weighted in accordance with the following four ‘fundamental’ factors; total cash dividends, free cash flow, total sales and book equity value.

More recently the FTSE EDHEC-Risk Efficient Index Series, launched in association with EDHEC-Risk Institute (EDHEC-Risk), employs a systematic approach which aims to capture equity market returns whilst offering improved risk/reward efficiency – offering greater diversification.

Jonathan Cooper, Managing Director, FTSE Middle East and Africa, noted: “Old Mutual Global Index Trackers’ core business makes FTSE a natural partner for successful product issuers who seek to develop alternatively-weighted index products. Their adoption of FTSE non market-cap weighted indices demonstrates their recognition of our expertise and wide choice, as well as creating a new opportunity set for index tracking managers.”

Kingsley Williams, Head of Research at OMGxT said: “Alternatively weighted index-tracking funds offer investors the best of both worlds; low cost funds, a robust investment methodology and the potential for enhanced returns relative to market-cap index-tracking funds.”

Press release

BC

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. Other Voices: The role of diversification in CTA portfolios[more]

    2014 brought a resurgence of managed futures strategies, or CTAs, which performed very well as a whole, outperforming all other hedge fund strategies. However, a closer look reveals that there was a wide range of performance, or return dispersion, across managers. The bottom line? Not all CTAs

  4. Neuberger Berman unit buys 20% stake in activist hedge fund Jana Partners for $2bn[more]

    Komfie Manalo, Opalesque Asia: Neuberger Berman’s unit Dyal Capital Partners bought a 20% stake in activist hedge fund firm Jana Partners worth $2bn, WSJ.com reports. The deal comes as activi

  5. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

    Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

 

banner