Solactive has entered the benchmark index sector with the launch of benchmark families in the equity as well as the fixed income space. Solactive plans to attract market participants with an aggressive pricing model.
The new benchmark indices will allow clients to do three things: firstly, construct smart beta indices directly by using broad Solactive benchmarks as a starting universe; secondly, use the benchmark itself as an underlying for investment products or to benchmark an active strategy; and thirdly, conduct index analytics across countries, regions or sectors, and therefore slice and dice individual index strategies.
The wider product range will broaden the customer base, by adding two important groups: firstly, the active fund-companies that need a cost-efficient benchmark to measure their fund performance; and secondly, the product shop that is looking for interesting smart beta concepts.
Astrid Ludwig, Head of Bond & Complex Indexing, says: "This is definitely a milestone for Solactive, enabling us to focus our development efforts on smart beta strategies and offer well researched and innovative index concepts for our customers."
Steffen Scheuble, CEO and founder of Solactive, says: "We have been approached by several asset owners, who are unhappy with either the service offered by the existing benchmark providers or find that the pricing for their service is unreasonable. Therefore we decided to close the gap and offer exactly what is missing – a cost-efficient and high quality service alternative."
