FTSE partners TOBAM for non market-cap indices

The FTSE Group has entered a partnership with Paris-based asset manager TOBAM to expand FTSE’s range of non-market cap weighted indices.

TOBAM, set up in 2005 by Yves Choueifaty, currently manages nearly $2bn, primarily for large pension funds. The deal with the FTSE Group is “an ideal way to leverage the momentum we are currently experiencing, with assets under management having grown by more than 30% YTD”, Choueifaty said.

The firm’s approach, already patented in Australia with patent pending in the US and other countries, seeks maximum diversification via a systematic quantitative methodology, avoiding the concentration risk in certain markets associated with market cap-weighted indices.

The new index series will join FTSE’s growing non-market cap-weighted index range, developed in partnership with other established experts in this field.

Mark Makepeace, FTSE Group chief executive, said investors are increasingly demanding alternative routes to the diversification of risk, using more complex index solutions.

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