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The New York Stock Exchange, part of the Intercontinental Exchange (NYSE: ICE) global network of exchanges, and MYRA Capital announced today the launch of the new NYSE Dynamic Allocation Indices family to fulfill the increasing demand for innovative index solutions combined with an intelligent risk management and dynamic beta-management. Together, MYRA Capital’s experience and specialization in dynamic, forecast-free and risk-controlled quantitative asset allocation strategies, along with the industry-leading indexing capabilities and deep experience of the NYSE Global Index Group, form a unique combination suited to offer solutions for both retail and institutional investors.
“The NYSE continues to expand its range of index offerings with this strategic, all-weather index. Designed for investors who want to maintain participation in bull markets while hedging against market downdrafts, this is an effective new tool,” said Laura V. Morrison, Head of Global Index & Exchange Traded Products at NYSE. “The market-proven concept underlines MYRA Capital’s innovative approach and we are pleased to offer an index by which investors can efficiently benefit from a rules-based, forecast-free investment strategy.”
The new NYSE Dynamic Allocation Index strategies are designed for a variety of investment vehicles, including separately managed accounts, mutual funds and ETFs. The first index is dedicated to the U.S. market and will combine a dynamic allocation to either the NYSE U.S. Large Cap Equal Weight Index or the NYSE Current 10 Year U.S. Treasury Index. This focused exposure on a dynamic mix of the 500 largest equal-weighted U.S. equities and U.S. Treasuries is designed to combine uncorrelated alpha sources:
1. Optimized, Strategic Beta Indexing:
Equal weighting (1/n forecast-free weighting approach) of the 500 largest U.S. equities instead of market-cap weighting.
2. Dynamic Asset Allocation:
Forecast-free, rules-based shifting between the “risky” asset (U.S. equities) and the “riskless” asset (U.S. Treasuries) to significantly reduce equity-beta drawdowns
“This new index supports MYRA Capital’s ongoing push to deliver superior investment solutions for institutional asset managers worldwide. Together with the NYSE, we bring in our capabilities and experience in forecast-free investment strategies, which are not dependent on market forecasts which are often unreliable in predictive power. We are convinced that the next generation of indexing – the combination of optimized indexing and dynamic beta-management – will be a veritable alternative for the needs of sophisticated institutional investors as well as demanding retail investors,” said Gokhan Kula, Managing Partner and CIO of MYRA Capital.
The new index is currently being calculated and published in real-time through the NYSE Global Index Feed (GIF), available on all major market data platforms.
Background on NYSE Group’s Indices:
With a collective portfolio of over 230 benchmark indices, NYSE is a leading provider of indices. NYSE develops proprietary indices to provide investors and issuers with benchmarks that measure performance of key segments of the world economy. NYSE indices are available to be licensed as the basis for tradable products, including Exchange-Traded Funds (ETFs), to be launched in the future. For more information on NYSE index services please visit: www.nyse.com/indices
NYSE®, NYSE U.S. 100 Index®, NYSE Arca®, NYSE Composite Index® , Intellidex® and StrataQuant® are registered trademarks of NYSE Group, Inc., or its subsidiaries.
