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Enhanced & Direct Indexing Enhanced & Direct Indexing

Enhanced & Direct Indexing

Beyond the tracking error, relative iVaR allows for more effective long-term index tracking.

The rise of zero-commission stock trading has created an opportunity for investors to apply customised index investing strategies, away from ETFs.

Our indexing capabilities allow you to create fully personalised portfolios that follow any benchmark, including customised benchmarks.

Customised benchmarks replicate the financial performance of an index or another benchmark, but with personal beliefs.

Tailor the index, tailor the portfolios.

It’s a lot of computation, but scalability is guaranteed via our cloud-based serverless deployment.

In the webinar below, we show you how to create hyper-personalised model portfolios that combine individual ESG preferences with proven quantitative alpha sources; and how to leverage these methodologies in a range of real-life scenarios.

We also have an FAQ document where you will find the answers to the questions that were asked during the webinar, and to other questions you might have on iVaR and Portfolio Optimizer.

Recording webinar Beyond Tracking Error

Aside from the traditional “tracking error”, our Optimizer can minimise relative drawdowns compared to an index, allowing for more effective long-term index tracking. But the Portfolio Optimizer does support the "traditional" tracking error if you prefer to use that.

The configurable investment framework allows limits such as the number of instruments in the portfolio or the exposures to certain sectors or fundamental factors.

Sustainability preferences are incorporated via positive and negative selection. This can involve both high-level ESG scores and tangible measures such as carbon emissions.

Our approach makes a natural trade-off between tracking the index, optimising tax liabilities, minimising transaction costs, and other selected investment preferences such as exclusions, ESG tilts or factor tilts.

Would you like to know what our Portfolio Optimizer can do for you and your customers?

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At InvestSuite, we help financial institutions accelerate their digital wealth transformation journey and launch the most engaging investing experiences for their customers.

With our suite of white-label InvestTech solutions, we help our clients extend their product range in an agile, fast and cost-effective way so that they can stay ahead of the curve and thrive in this increasingly digital world.

InvestSuite is a place where bankers, creative designers, imagineers, computer and behavioural scientist work together to create user experiences that open up new markets and drive commercial success for our clients.

We're looking forward to meeting you.