The New York Stock Exchange (NYSE), part of the Intercontinental Exchange (ICE) global network of exchanges, and Myra Capital have launched a new NYSE Dynamic Allocation family of indices in response to the increasing demand for index solutions providing risk management and dynamic beta-management.

The new index strategies have been designed for a variety of investment vehicles, including separately managed accounts, structured products, mutual funds and exchange-traded funds (ETFs). The “all-weather index”, which is aimed at investors seeking participation in bull markets while hedging against market downdrafts will benefit from a rules-based, forecast-free investment strategy, said Laura Morrison, head of global index & exchange-traded products at NYSE.

There are over 800 live products using dynamic allocation strategies via portfolio insurance (CPPI) payoffs, of which one credit-linked note (Notes db Investimento Global Managers), which sold €20m in Portugal back in May 2014, features the M&G Dynamic Allocation fund in a basket of indices, according to SRP data.

The first index is dedicated to the US market and will combine a dynamic allocation to either the NYSE US Large Cap Equal Weight Index or the NYSE Current 10 Year US Treasury Index.

NYSE Group said that this focused exposure on a dynamic mix of the 500 largest equal-weighted US equities and US Treasuries is designed to combine uncorrelated alpha sources including optimised, strategic beta indexing and dynamic asset allocation.

The combination of optimised indexing and dynamic beta-management will provide “a veritable alternative” for the needs of sophisticated institutional investors as well as retail investors as they are investment strategies not dependent on market forecasts which are often unreliable in predictive power, said Gokhan Kula, managing partner at Myra Capital.

The new index is being calculated and published in real-time through the NYSE Global Index Feed (GIF), and is available on all major market data platforms.

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