Nasdaq OMX and Newfound to develop rules-based strategy indices

Oct 7th, 2013 | By | Category: ETF and Index News

Newfound Research, a Boston-based quantitative investment advisor, and Nasdaq OMX Group, a leading exchange group and index provider, have agreed to collaborate on a range of rules-based investment strategy indices.

Nasdaq OMX and Newfound to develop rules-based strategy indices

The new indices will be based on quantitatively driven models developed by Newfound Research, a Boston-based quantitative investment advisor.

The news indices, which will combine Newfound’s investment insight with Nasdaq OMX’s pedigree in the index space, will include a risk managed income strategy, a global defensive equity strategy, a target excess yield strategy and a US equity dynamic long/short strategy.

Nasdaq OMX and Newfound expect that the new indices will be available for licensing and implementation through separately managed accounts and through exchange-traded funds (ETFs).

Both parties have agreed to dedicate resources towards marketing of licensing opportunities, which will include educational information about how indexing works and how these investment strategies might fit into a client’s portfolio.

Commenting on the partnership, Dave Gedeon, Managing Director, Nasdaq OMX Global Indexes, said: “Nasdaq OMX continues to focus on innovation and partnering with exceptional firms like Newfound, one of the most inventive and sought after organizations developing rules-based, outcome-oriented investment strategies and specializing in tactical asset and risk management. This relationship brings our respective brands and expertise together to develop a unique product family.”

Corey Hoffstein, Newfound’s Chief Investment Officer, added: “Newfound seeks strategic partners like Nasdaq OMX. By combining our unique and complementary strengths, including Newfound’s quantitative models and Nasdaq OMX’s global brand, this partnership allows us to provide both retail and institutional investors with a full suite of structured investment strategy solutions.”

Tom Rosedale, Newfound’s CEO, commented: “We are excited to partner with a leading, full-service index provider like Nasdaq OMX. We believe that Nasdaq OMX’s index construction and technology expertise and powerful brand can make our quantitatively enabled, rules-based investment strategies available to investors throughout the world.”

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