Alexander Berg, Founder & CEO, Index One met with Julie Cooling, Founder & CEO, RIA Channel to discuss how advisors can leverage Index One as a cost effective solution to build their own indices and streamline operations.
Berg says he founded Index One with the mission of disrupting the way indices are designed, calculated, distributed and ultimately how they are licensed. While most index providers today license out the specific index, and thus maintain the intellectual property, Index One licenses a set of tool for advisors to design and calculate any systematic strategy.
This approach allows for a high degree of flexibility as well as the ability to maintain ownership of the index, which can then be productized or re-licensed to other third-parties. Active managers can also leverage the tool to build their own customized benchmark indices, at potentially a lower cost then licensing from any existing index, to show relevant benchmarks and the potential for outperformance.
From a portfolio model management perspective, the Index One tool allows for streamlined tracking of the model portfolio’s performance. Index One is also useful under the new SEC guidelines around performance marketing requirements. Leveraging a technology like Index One allows advisors to create a systematic or index-based performance reporting with all of the necessary information tracked automatically.
To learn more on Index One’s capabilities and tools, head here.