Trademarked as Indextus®, our three-step risk technology is used to generate a range of core and tailored mixed asset indices. The system is updated monthly to monitor ongoing integrity and report on changes. More in-depth analytics are also generated, creating an ongoing record of how mixed asset funds, in aggregate, are positioned across the volatility spectrum.
The Indextus® three-step approach
1 - Collate
Raw asset allocation weights from active mixed asset funds are sourced direct from fund managers. This information is collated and structured by Indextus. The system then applies several statistical techniques, including non-linear regressions and dynamic data smoothing to ensure the information underpinning our systems are reliable and robust.
2 - Generate
Risk ranked categorisations are calculated from the aggregated data. The resulting allocations are then re-based for consistent comparison. Users of our systems can therefore be confident in their accuracy and timeliness.
3 - Allocate
A full covariance matrix risk methodology is employed to order each set of asset class allocations by their overall portfolio volatilities. This allocation process generates a spectrum of multi asset indices from lower to higher levels of risk and can be used to generate bespoke indices to meet particular client requirements.
Indextus® allows us to generate mixed asset indices for any point on the risk spectrum. Its structure provides the safeguard of being independent, objective and systematic ensuring the data's integrity. Built around actual aggregated fund manager holdings and using tradeable underlying constituents, our indices also support investable portfolio structures. More in-depth information regarding the Indextus® technology and our indexing methodology is available on request from firstname.lastname@example.org or through our enquiry form.