Products April 26, 2011

BNY Mellon to Offer Private Capital Benchmarking Service

BNY Mellon institutional clients will be given access to Private iQ, a private capital benchmarking service, developed by the Burgiss Group.
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Private iQ provides information and tools to help clients analyze the behavior and performance of private capital markets.  Subscribers will be able to benchmark private equity managers, compare asset classes, and stay informed about macro-level changes in the investment environment, the company announced.

BNY Mellon’s plan sponsor clients will be able to access Private iQ directly from its Workbench information delivery portal, opening up a range of private equity data and analytics, including fund performance by vintage year (with returns, multiples and cash flow statistics), fund behavior over time, concentration analysis, and fund track record comparisons against specific universes.  BNY Mellon also has developed a standard report with key information asset owners have been seeking, such as performance across asset type and vintage year.  

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“Plan sponsors look to service providers for help with their most pressing challenges, including assessing performance for private equity and other illiquid assets,” said John Gruber, managing director, global product strategy of BNY Mellon Asset Servicing’s Performance & Risk Analytics group.  “With access to Private iQ or our new standard report, our clients will be able to address the critical need for better understanding of the private capital markets.”
Products April 26, 2011

Dow Jones Finds Partner for Index Series

Index provider Dow Jones Indexes announced the development of a new index family.
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Dow Jones has agreed to develop and co-brand an index family with risk management research consulting firm LSP Partners LLC, which will utilize a proprietary strategy created by LSP Partners founder and CEO, Ralph Vince. 

The companies created the Leverage Space Portfolio (LSP) strategy, which “seeks to maximize the probability of equity portfolio profitability by employing a risk-control process focused on capital preservation and drawdown management. Compared to a traditional buy-and-hold portfolio, an LSP-based portfolio aims for more consistent returns with lower risk.”

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The indexes, scheduled to be launched in the second half of 2011, can serve as the basis of both passive and active investment funds, including exchange-traded funds, mutual funds, and institutional accounts around the world, according to the firms. 

“We believe the marketplace will welcome our new family of indexes that applies this unique portfolio risk-management theory,” said Michael A. Petronella, President, Dow Jones Indexes. "These innovative techniques aspire to change the paradigm of the professional investment management process while providing Dow Jones Indexes with an opportunity to expand our roster of risk-based indexes.”

According to the announcement, Dow Jones Indexes has fully automated all elements of the LSP strategy, allowing for universal, systematic, and transparent application of a rules-based strategy to equity portfolios of any size or composition.

“The association with Dow Jones Indexes is, to us, a commercial validation on the highest order of our portfolio management ideas,” LSP Partners’ Vince said. “We're extremely proud to collaborate with the world’s foremost index provider.” 

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