Products September 28, 2010

FTSE Unveils Diversification Index Series

FTSE Group and QS Investors, LLC, an independent investment firm, have launched the FTSE Diversification Based Investing (DBI) Index Series. 
Reported by

According to a news release, the indexes are alternatively weighted to promote diversification across countries and industry sectors.  They seek higher absolute and risk-adjusted returns compared to market cap-weighted indexes with less downside risk. 

The FTSE DBI Index Series is made up of three indexes, including: 

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  • FTSE DBI Developed Index
  • FTSE DBI Developed ex US Index
  • FTSE DBI Developed ex Japan Index

The FTSE Group statement says the investment philosophy behind the FTSE DBI Index Series is that both geography and industry are the primary drivers of global equity risk and return. Market sentiment can lead to momentum effects, causing concentration risk in market-cap weighted indexes, the news release said.  A diversified portfolio helps to avoid this concentration risk and decreases downside risk.

Products September 28, 2010

ING Unveils Global Bond Offering

ING Investment Management Americas has launched the ING Global Bond Collective Trust Fund.
Reported by

The strategy combines fundamental and quantitative analysis in seeking out opportunities in more than 20 countries around the world, according to a news release.

The new offering seeks to outperform the Barclays Capital Global Aggregate Bond Index by investing in a wide range of debt securities including sovereigns, corporates, emerging markets, and high yield and mortgage-backed securities. The strategy employs three main tools to generate excess returns:  duration and yield curve, active currency management and broad sector rotation.  

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“Institutional investors are increasingly recognizing global bonds as a way to diversify their portfolios and as a source of alpha,” said Erica Evans, Senior Vice President and Head of the U.S. Institutional Business at ING Investment Management, in the announcement. “Historically, global bonds have provided investors with non-correlated returns that help smooth out portfolio performance and improve returns.  We believe that there will be considerable opportunity in global bonds over the next years and that this asset class will continue to provide favorable results over a market cycle.”

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