OUR SOLUTION
For far too long, asset managers had no other option than to accept higher fees and restrictive data policies from dominant index providers.
Those same Asset Managers asked us to develop an alternative index, convinced that our 25 years’ experience in building robust risk-optimized portfolios would make us a legitimate and much needed new index provider.
So, we took up the challenge and launched a project. Our goal was to create an indexing product that would be perfectly substitutable and available at fair cost, with no limitations on usage and no risk of future price increases.
With the support of major market players, such as Amundi, Natixis and AXA, we conducted comprehensive back-tests on a large variety of alternative indexes, using the APT model.
The results clearly showed that our indexes provide unbiased market replication. They are effectively substitutable on all criteria: from geographies and sectors to economic indicators, styles, performances, and delivery conditions.
The Fair Cost Index, FCI,
a new ground-breaking index was born.
With FCI, asset managers have access to daily compositions and index values for all purposes with no usage restrictions (e.g., risk analysis, performance attribution, reporting, marketing) and with a long-term commitment to keep price increases below inflation.
Contrary to traditional index providers, FCI’s fees are based on the aggregated assets under management across an entire company or group. Switching to FCI, therefore, represents a substantial cost saving for clients.
FCI is fully operational and can be installed overnight. Users can run it in parallel to their current indexes and switch to it at any time with complete safety.