StatPro becomes NASDAQ Elite Index Data Partner affiliate
09 July 2014
Category: News, Global, North America
By Hui Ching-hoo
StatPro Group, a global provider of portfolio analytics for the investment community, has joined NASDAQ’s Elite Index Data Partner programme.
The affiliation gives StatPro Revolution customers access to the complete suite of more than 41,000 indexes offered by the NASDAQ Global Index Family.
Justin Wheatley, group chief executive officer, StatPro, said: “We’re excited to be partnering with NASDAQ to supply their high quality indexes in StatPro Revolution, our cloud-based portfolio analytics service. For the first time, asset managers of any size will be able to perform sophisticated attribution analysis by buying index data on a per portfolio basis. For investors, the high integrity of the NASDAQ brand means that they can be confident that any comparison between a fund manager's portfolio and the NASDAQ indexes will be as good, if not better, than any alternative index provider. For asset managers, the combination of brand, quality and price point makes this an unbeatable combination."
StatPro Revolution’s App Store will feature the NASDAQ indices, both on a constituent and total level, and will allow clients the opportunity to buy benchmark data on a per portfolio basis. By combining the power of StatPro Revolution’s cloud-based portfolio analytics and NASDAQ’s high-quality, low cost benchmark data, asset managers will have access to deeper insights at a significantly lower cost.
Further, NASDAQ’s Index Level Performance available in StatPro Revolution can be redistributed by downstream clients in their own reports without the need for a direct licence or associated fees, enabling investor communications without incurring additional fees for reporting rights, typically charged by other benchmark providers.
Mr. Wheatley told Asia Asset Management that it will be the smaller companies in general that will benefit from this offer. However, it is important to note that many companies need a variety of index families to cover all the portfolios they manage and that can mean buying data from multiple index suppliers. So the costs can rack up even for larger asset managers.
“This approach means that it makes economic sense to take just one index if that is all that is needed. Asset managers need to really understand and demonstrate how they add value versus a benchmark. The pressure is on the active managers to show this and the combination of StatPro Revolution's outstanding analytics and the NASDAQ indexes is a powerful solution.”
Pointing to the rising cost of index data, Mr. Wheatley added: “When indexes were first created they were often given away to help another business line prosper, then as they became more professional, they started licencing groups of indexes. They subsequently started adding clauses to limit usage of the indexes which enabled them to sell further licences and added further clauses to their contracts to licence downstream usage.
“The most profitable use has been to licence ETFs to use them. Asset managers recognise they are buying a brand, not a calculation, and that has a different price. However, there remain many uses where people just need a valid comparison not the brand name and they want that at a sensible price.”
To address the problem, StatPro provides analytics that enable its client to show how they add value. “We also help protect the index vendor's intellectual property. Usually the index provider has to send the asset manager the raw index data for them to put into whatever system they use. Whilst they have legal control they do not have physical control of their data. With StatPro Revolution they can limit the user to accessing just the results of analysis not the raw data. They can also monitor who accesses it,” Mr. Wheatley added.
Oliver Albers, vice president and head of sales for NASDAQ’s Global Data Products said: “Partnering with StatPro Revolution to offer the NASDAQ Global Index Family is an exciting opportunity for both companies that creates unsurpassed value for the buy-side community. The combination of StatPro’s cloud-based analytics platform and NASDAQ’s deep global index content enables investment managers of all sizes to conduct sophisticated portfolio attribution analysis at an affordable price.”
Mr. Albers told AAM: “As an industry-leading provider of performance and risk analytics tools, StatPro is a key partner to provide our index information to pension consultants, asset owners and asset managers. Given StatPro’s unique commercial approach of pricing their service along with NASDAQ’s index content on a per portfolio basis, it particularly enables both organisations to provide deep analytic capabilities to asset managers of all sizes on a cost efficient basis.”