Bringing you live news and features since 2006 

Dow Jones Michael A

Dow Jones Indexes to launch Parala Macro Allocation Indexes

RELATED TOPICS​

Dow Jones Indexes and Parala Capital LLP are to launch the Dow Jones Parala Macro Allocation Indexes, a new family of stock indexes based on Parala Capital’s proprietary macro-allocation methodology.

Formed in 2007, Parala Capital focuses solely on developing investable strategies using rigorous quantitative methodologies based on proprietary and academic research. The London-based firm’s proprietary macro-allocation methodology seeks to identify the future performance of a universe of assets by utilising economic factors as inputs for a passive asset allocation strategy.

“By working with Parala Capital on this unique family of indexes, we are joining with some of the financial community’s leading experts who have spent years analysing how asset prices are affected by changing economic conditions,” says Michael A Petronella (pictured), President, Dow Jones Indexes. “We believe the Dow Jones Parala Macro Allocation Indexes will appeal to market participants who appreciate innovative ideas that can help them better understand and measure the effects that macroeconomic conditions have on the financial markets.”

Parala Capital’s macro-allocation methodology uses monthly macroeconomic and risk-factor inputs to measure the state of the economy and capital markets, taking into account changing economic conditions by over- and under-weighting market segments based on their expected performance. The model rebalances regularly to create forward-looking rankings and scores.

Based on these scores, Dow Jones Indexes then assigns weightings to the market segments (subindexes) represented in each index.

The first index in the series, the Dow Jones Parala Global Sector Macro Allocation Index, allocates among 19 global sector indexes within the Dow Jones Sector Titans Index family.

It is expected that additional indexes will be added to the Dow Jones Parala Macro Allocation Index series over time.
 

Latest News

BlackRock’s global ETP flows report for June finds a steady rise with USD128.1 billion added to global ETPs in June,..
Morningstar’s global ETF flows report for the first half of 2024 shows that actively managed ETFs have captured 25 per..
The surge in bitcoin ETF launches and funds flowing into the sector is transforming institutional investment in digital assets but..
LSEG Lipper’s latest research finds that the majority of actively managed funds and ETFs globally were not able to beat..

Related Articles

Chris Lo, Columbia Threadneedle
In a recent insight on India by Columbia Threadneedle Investments, the firm reports that the country’s economic reforms, which aim...
With an election on the horizon in the United States a group of ETFs is poised to capture investments on...
Robot worker
Qraft Technologies, based in South Korea, specialises in the use of AI in security selection and portfolio construction....
Andrea Busi, Directa SIM
Romain Thomas talks to Andrea Busi (pictured), CEO of Directa SIM, who explains why the online trading platform has just...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by