FTSE Russell, a global index provider, has signed a collaboration agreement with momentum investing specialist and analytics firm, Trendrating to create a new line of indices. The agreement will see the firms develop new innovative momentum indices incorporating Trendrating’s unique momentum model and supporting data as a core component of the methodology.
FTSE Russell and Trendrating have signed an agreement to build a series of momentum indices, incorporating Trendrating’s unique models and supporting data as a core component of the methodology.
This latest announcement will strengthen FTSE Russell’s existing range of factor products, including the FTSE Global Factor Index Series and the FTSE Global Diversified Factor Index Series. These indices are used by institutions as both a performance benchmark and risk management tool, and by product issuers as a foundation for new exchange-traded funds. Over the last 12 months, Deutsche Bank, JP Morgan, O’Shares and State Street Global Advisors have all developed products linked to the indices.
Mark Makepeace, CEO of FTSE Russell, commented: “As passive investment requirements become increasingly sophisticated, we have seen strong demand for our factor indices from a variety of market participants. As a result, we are delighted to collaborate with Trendrating to expand our offering by creating a range of new momentum indices. The products will be developed using both firms’ expertise and supported by FTSE Russell’s longstanding commitment to strong and transparent governance.”
Trendrating provides a range of tools designed to maximize investment performance and improve risk control. Currently more than 100 institutional fund managers across Europe, the US and Asia use the company’s momentum metrics to help them improve their investment decision making process.
Rocco Pellegrinelli, Founder and CEO of Trendrating, added: “Momentum is a strong and persistent factor, rapidly gaining popularity among top global asset managers as a key component in portfolio construction and tactical allocation. This collaboration with FTSE Russell represents a huge leap forward for momentum investing and further endorses our momentum model as one of the leading methods to enable fund managers to harness the power of this important factor.”