INDEX DEVELOPMENT

Indxx has been developing and licensing indices to clients since 2005. We capitalize on our strong in-house research capabilities and experience in financial markets to develop unique and innovative index concepts, either on our own in-house or at the request of our clients.


The firm's Index Development division includes:


  • Index Licensing
  • Custom Indexing
  • Research
  • Identify key trends in the market and unlocked value opportunities.
  • Conduct extensive research and analysis on the index concept to understand the rationale behind the existence of the opportunity, and identify key underlying return drivers.
  • Perform competitive market analysis to understand the key features and flaws of existing products.
  • Create multiple sets of methodologies to best capture the essence of the concept and value proposition.
  • Intensive back testing and optimization before finalizing an index that best meets the criteria for success.





  • Market Mapping: Detailed analysis of the market to determine the key features of successful products in the space and scope for introduction of a new product. Includes a study of the competitive space, market dynamics, recent trends, product pricing, and other key criteria.
  • Value Proposition: Differentiate the product in the space and capture the attention of investors, based on a detailed analysis of competing product methodologies and the investment proposition of successful products.
  • Concept Testing: In consultation with the client, a number of methodologies are created to try to best capture the desired value proposition. The results are shared with the client, along with an in-depth analysis and recommendations.
  • Indexing: Once the client finalizes a methodology, the final index is created using custom baskets along with detailed back test and analysis. Research and white papers are prepared comparing the product against competitors and outlining the key features and benefits of the product for the client's sales team and investors.
  • Indxx develops custom indexes across a broad range of asset classes covering equities, fixed income, commodities, real estate, derivatives and other alternative asset classes.

    Products based on Indxx indices have garnered accolades in the press for their unique composition, design and positioning, and our indices serve as underlyings for numerous financial instruments, including:

    • Exchange Traded Products
    • Passively Managed Index Funds
    • Mutual Funds
    • Structured Products
    • Other Index-linked Financial Assets

    Case Study: Index Creation, Analysis & Maintenance for ETF Provider in New York

    Approach

    Consultation

    Development

    Testing

    Launch

    Maintenance

    • Indxx was approached by an ETF provider, interested in working with us in a collaborative manner to develop indices upon which their ETFs could be based.
    • We spent considerable time with the client to gain a complete understanding of their strategic requirements and ideal product positioning relative to their competition.
    • Based on meetings and consultation, we developed an investment philosophy and methodology for a suite of indices that met the client's needs.
    • Indices were created and backtested, and data analysis was shared with the client at every step to ensure that the creation process was proceeding according to our mutually agreed upon goals.
    • Products emerged that were tailor-made to ETF provider's needs.
    • Initial products were successfully launched and Indxx continues to work closely with the client.
    • Daily maintenance of indices coupled with periodic reviews with client.
    • We continue to analyze launched indices on a regular basis.

Schooled in philosophy of irrational exuberance associated with financial markets, our research wing is focused on uncovering biases, influences and discrepancies in financial markets which take a long time to correct in financial markets and create value for shareholders on continuous basis. Backed by years of experience in financial markets, proven research capabilities and a strong team consisting of seasoned professionals from reputed business schools and universities around the world, research team provide a comprehensive coverage including diverse themes, geographies and asset classes. Our research team deploys a multi-disciplinary approach inducing extensive usage of social sciences such as history, political science, economics, philosophy, psychology and sociology in conduction with financials and quantitative measures which provide a holistic definitive long-term view on investment opportunities in the financial markets.

Indxx's Research Division's offerings include:


Concept Development

  • Incubation and development of new product ideas (active or passive) for our clients.
  • Cross-sectional analysis with respect to peers, with insights on key trends in the space and main features of the potential product.

Example:    Generic Drugs: Revolutionary Change in the Global Pharmaceutical Industry


Thematic Research

  • Quantitative and qualitative research across asset classes, geographies and investment themes over long periods of time.

Example:    The India Story: Impending Revival


Investor Education

  • Research notes are regularly developed and updated for funds, which allows sales teams to effectively educate investors.

Example:    Indxx Hedged Dividend Income Index - A True Income Alternative