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ArthVeda Capital Introduces Smart Alpha™ Indexes for Global InvestorsNew Index Series Mitigates Risk while using Market Inefficiencies to Enhance Performance | ||
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Dec 16, 2015 18:10 IST
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New Delhi, Delhi, India ArthVeda Capital, the capital markets arm of a Mumbai headquartered top-rated global asset management firm, ArthVeda Fund Management Company, announced today the launch of its Smart Alpha™ Framework and its initial suite of eight Indexes. Smart Alpha™ is a rules-based, value investing framework that produces a portfolio of low risk, high quality stocks that are available at a discount to intrinsic value.
The Smart Alpha family is composed of Smart Alpha™, Smart Value™ and Smart Income™ Indexes. Each index component is weighted by its discount to intrinsic value, as compared to the float-adjusted market-cap weightings of conventional indexes. ArthVeda Capital is working with the New York Stock Exchange (NYSE), which is providing calculation and dissemination services for its indices in the U.S.
“The major disadvantage of conventional indexes is that, because they are market-cap weighted, they tend to over-allocate to overvalued stocks and under-allocate to undervalued stocks,” said Dr. Vikas Gupta, Executive Vice President and Chief Investment Officer at ArthVeda Capital and the inventor and architect of the Smart Alpha™ concept. “Smart Alpha does the reverse, which tends to produce better performance over the longer term.”
The indexes being launched today include:
Smart Alpha Indexes AUTXA ArthVeda Smart Alpha™ US Total-cap 50
Smart Value Indexes AULVV ArthVeda Smart Value™ US Large-cap 500 ABLVV Arthveda Smart Value™ UK Large-cap 100 AKLVV ArthVeda Smart Value™ Europe Ex-UK Large-Cap AJLVV ArthVeda Smart Value™ Japan Large-Cap
Smart Income Indexes AUTDI ArthVeda Smart Income™ US Total-cap 50 Divine Dividend AXLDI ArthVeda Smart Income™ International Large-cap 50 Divine Dividend AGLDI ArthVeda Smart Income™ Global Large-cap 50 Divine Dividend
ArthVeda Capital plans to launch options on each of the Smart Alpha™ indexes on the NYSE later this month. In addition, the company is in discussion with several major ETP providers and expects to create investable products in early-2016.
“Working with NYSE is going to be valuable and associating with indices globally, is the first significant step ArthVeda has taken in its quest for entering global markets by developing investment strategies for non-Indian investors to invest into non-Indian assets. As far as we know, no other Indian company has attempted to enter the USD 7 tn market of large cap global equities with indices, ETFs traded on such indices etc,” said ArthVeda Director & Chief Executive Officer, Bikram Sen.
“The U.S. launch of our global family of Smart Alpha Indexes™ represents an important new initiative for ArthVeda Capital,” said ArthVeda Chairman & Managing Director Kapil Wadhawan. “We are looking forward to making our proprietary methodology available to investors in U.S. and International equities through partnerships with leading US-based ETF issuers and asset managers.”
About ArthVeda Capital ArthVeda Capital is the capital markets arm of ArthVeda Fund Management Company (AVFM), a Mumbai headquartered top-rated global asset management firm, and is ranked #1 in Long-bias equity strategy out of more than 11,000 hedge funds worldwide by Preqin for calendar year 2014. In its quest to provide clients with superior investing products, ArthVeda Capital is ushering in a new era of investing with its proprietary, US patent-pending, Smart Alpha™ framework, because of its belief that today’s problems cannot be tackled with yesterday’s solutions. It has created rules-based investment solutions grounded in the principles of value investing, ArthVeda Capital applies its proprietary Smart Alpha™ framework to a family of products. The Smart Alpha™ index universe includes all market-caps in both US and international markets. The objective of ArthVeda Capital is to generate forward-thinking investment strategies previously inaccessible through cap-weighted indexes.
ArthVeda Fund Management Pvt. Ltd (AVFM) is a global asset management firm with a focus on alternative investment funds covering asset classes such as real estate and traded markets; and has top-ranked performance across both real estate and traded markets. It is a part of the financial services group whose flagship company is Dewan Housing Finance Ltd (DHFL). DHFL is the second largest private housing finance company in India and is listed on Bombay Stock Exchange and National Stock Exchange.
For more information, please visit www.arthvedacapital.com
Past performance is not necessarily indicative of future results. ArthVeda Capital is a Strategic Business Unit of ArthVeda Fund Management Pvt. Ltd. (AVFM). It is not possible to invest directly in an index. AVFM Indices do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where AVFM Indices does not have the necessary licenses. AVFM Indices receives compensation in connection with licensing its indices to third parties.
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Media Contact Details
Rahul Jain
Adfactors PR + 91 9867567534 Debdoot Majumder
Adfactors PR + 91 9619321119 |
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