FTSE Russell has built a series of customizable multi-asset indexes.
The FTSE Multi-Asset Composite Index series will focus on measuring cross-asset market performance over a number of regions including the U.S., Europe, China as well as other emerging markets.
The series was built in response to demand from clients for methods to measure multi-asset performance with more accuracy and consistency, a FTSE Russell release noted. Users will be able to customize the tools by specifying the balance between equity and fixed income. They will also be able to further customize the index by asset class, weightings, currencies, countries, sectors and hedging.
“This represents another important step in FTSE Russell’s continued expansion of our global multi-asset capabilities and follows the recent introduction of a country classification framework for fixed income and the launch of the FTSE Market Based Allocation index series,” said Scott Harman, managing director of global product management at FTSE Russell. “We’re excited to be able to continue to combine our extensive index capabilities across equity and fixed income in new and unique ways to meet the needs of our clients. The new index series bridges a gap in the investment community and will establish a new industry standard for defining risk tolerance levels and benchmarking asset allocation investment strategies.”
Each index within the series contains an index-level composite of a minimum of one equity and one fixed income index and some will include a cash component. For example, the FTSE China Multi-Asset Composite indexes will feature three sub-families. The first a combination of the FTSE China A50 and the FTSE Chinese Government Bond indexes, the second a pairing of the FTSE China A and FTSE Chinese Government and Policy Bank Bond indexes and the third features the FTSE China A All Cap and the FTSE Chinese Broad Bond indexes.