Newfound Research has collaborated with The Nasdaq OMX Group create new rules-based, quantitatively enabled investment strategies.
Nasdaq OMX and Newfound have agreed to create a suite of outcome-oriented co-branded indexes and to work jointly to promote licensing opportunities.
Nasdaq OMX and Newfound expect that the new indexes will be available for licensing and implementation through separately managed accounts and, in some cases, through exchange-traded funds (ETFs). Both parties will 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.
The initial indexes 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 continues to focus on innovation and partnering with exceptional firms like Newfound, one of the most inventive and sought after organisations developing rules-based, outcome-oriented investment strategies and specialising in tactical asset and risk management,” says Dave Gedeon, managing director, Nasdaq OMX Global Indexes. “This relationship brings our respective brands and expertise together to develop a unique product family.”
“Newfound seeks strategic partners like Nasdaq OMX,” says Corey Hoffstein, Newfound’s chief investment officer. “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.”