Institutions, family offices and Trusts and Endowments have found two innovative methodologies to utilize custom indexes developed by CI.
There is a hole in their allocation. Through the asset allocation process, manager selection, reallocations, manager style drift, and the introduction of alternative asset classes, many institutions and their consultants when assessing overall portfolio composition have either found missing pieces or steps to be taken for risk mitigation. Both of these issues can be resolved through a custom designed index. An index developed whose sole purpose is to fulfill the need for that institution.
Portfolio size is too big for a broker and too small for traditional manager selection. Smaller institutions and their consultants will share their investment goals and asset allocation strategies with CI and engage us to develop a portfolio strategy utilizing a custom developed index and utilize our proprietary selection process to fulfill and manage the allocations.
Product Selection Process
- Examine all potential index-tracked product for inclusion in the fund
- Perform top down analysis on issuers and index providers
- Perform top down quantitative analysis on funds including trading history, tracking error, Sharpe ratio and performance characteristics
- Perform bottom up analysis
- Examine all relevant indexes at a constituent level
- Test each security using Clear’s proprietary multifactor model
- Score each stock
- Aggregate stock scores to quantitatively analyze each index and ETF
- Perform risk analysis of unintended results such as securities overlap and sub-sector concentrations
Select products
Monitor all of the ETFs daily
CI partners with its parent company Clear Asset Management Inc. as the investment manager when appropriate.
Interested institutions should feel free to
contact CI for additional information.