Tue, Feb 28, 2017
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. Comment - Mortgages, mergers and hedge fund fees, Fairholme's Berkowitz responds to court ruling against hedge fund suits of Fannie Mae[more]

    Mortgages, mergers and hedge fund fees From Bloomberg.com: Yesterday the U.S. Court of Appeals for the D.C. Circuit handed down an odd decision in a lawsuit over the government's nationalization of Fannie Mae and Freddie Mac. The key issue is what's called the "Third Amendment," the 2012

  2. Investing - Hedge funds continue to chase the herd in record Momentum wager, Marshall Wace bets grocer Sainsbury may need rights offering, Hedge fund net exposure has started to retreat, David Tepper's Appaloosa fund makes a huge buy, The 10,000-mile journey to Short Australia, Skeptical hedge fund investors grill Evan Spiegel about Snap's I.P.O.[more]

    Hedge funds continue to chase the herd in record Momentum wager From Bloomberg.com: Hedge funds can't get enough of momentum - even if it means embracing an investing strategy they hate. Loosely defined as betting on shares that went up the fastest over the preceding nine-to-12 months, h

  3. Opalesque Exclusive: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s

  4. K2 Advisors : Why We Like Activist Hedge Fund Strategies and Some Thoughts on Alpha[more]

    Matthias Knab, Opalesque: Rob Christian, Senior Managing Director, Head of Research K2 Advisors, Franklin Templeton Solutions, writes on Harvest Exchange: When d

  5. Ex-Navy SEAL backed by Mario Gabelli, Jean-Marie Eveillard and other value giants off to strong start[more]

    From Valuewalk.com: Sententia Capital Management is not your average value focused hedge fund. The fund was founded by Michael Zapata, a former Navy Seal Team 6 Officer and has attracted funding from some of the best-known names in the value space. Mario Gabelli, Jean-Marie Eveillard from First Eagl