Partnerships

S&P Partnership

We partner with Standard and Poor’s (S&P) to create custom investment solutions that improve on the limitations of the traditional market capitalization-weighted indexes as well as target systematic exposure. S&P is a market leader in both traditional index development as well as custom index development. S&P created the first truly “investable” index: the S&P 500 index, which is the largest single tracked index globally with nearly $8.7 trillion assets benchmarked or tracked to the index as of
2016.

In fact, as of 2016, S&P indexes, as a whole, have $11.7 trillion in global assets tracked to them. That makes up nearly 14% of the nearly $85 trillion in globally invested assets as of 2016. By comparison, as of 2016, MSCI indexes have roughly $10 trillion (roughly 12%) in global assets tracked to
their indexes and FTSE Russell indexes have roughly $2 trillion (roughly 2%) in global assets tracked to their indexes.

The power of the S&P brand is 2nd to none in both tracked assets and general performance. Additionally, S&P pioneered the revolution of customized passive indexes with both the quality of their research team and the protection that is offered by S&P to protect the proprietary nature of their clients’ customized indexes. For these reasons, Global Beta Advisors selected S&P as both the brand to which our customized indexes were born as well as the partner to bring the indexes to the market.

Through our partnership with S&P, we created six customized strategies: four single factor indexes and two multi-factor indexes. After Global Beta conducted its in-house research to determine what we believe are the most relevant market factors, the most relevant metrics to create those factors, and the most proficient way to rotate through those factors; we assigned S&P to research 20+ years of backtested results for each one of those strategies, which we believe ultimately validated our research.

As a result of our partnership, we were left with 3 things: 1. A starting universe of “champions”, 2. Validated results from the largest index
provider, and 3. Global Beta Advisors’s sole ownership of those indexes with S&P’s reinforcement.

Check out our daily return history on our custom S&P home page

 

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