©David Bromley

In this issue

Indices and the companies that calculate them are playing increasingly important roles across financial markets as disenchantment with the poor performance of active managers fuels interest in passive investment strategies

Watchdogs attempt to force trackers out of closets

Growing evidence suggests closet tracking is rife

Arnaud Llinas of Lyxor

Passive managers struggle to mirror indices

Managers of index trackers can drift from their performance goals

Investors seek ethical benchmarks

Meeting the challenges of climate change with low carbon indices

Nike Free trainers

Footwear measure offers well-trodden path

Indices provide access to a range of specialist investment themes

Wisdom Tree’s Nizam Hamid

Profiting from passive aggression

The rapid rise of ETFs is driving growth for index providers


Banks retreat from benchmarks

Given scandals, fines and reputational risk, the way ahead is unclear

Record growth sees new alliances

Banks offload data services as independent providers undergo consolidation

Smart beta comes into its own after smart marketing

Aim is to provide a cross between passive and active approach

The promise offered by last great frontier

Absence from global rankings centres on ease of access for investors

Low carbon becomes a high priority

Investors have a range of tools to gain exposure to environmental change


A rise of passives, a rise of scrutiny

Index-based investing expands rapidly

Brussels takes broad brush approach to fix Libor scandal

Proposals cover all index providers

China’s A shares poised to go global

Beijing gradually opening capital markets to foreign investors

Take care when choosing alternative route

Smart beta indices attract investors

If you cannot beat them, track them

Pension funds urged to adopt index strategies


Rivalry and tougher rules fuel change

Indexing is seeing rising competition and strong asset growth

CME Group veteran to head Index Industry Association

Rick Redding is appointed as first executive director of the trade body

Strategic alliances change face of industry

Conflicts of interest risks concern index providers

Fundamentalists argue toss with fans of status quo

The pros and cons of the alternatives to a market capitalisation weighting

Investors grapple with sector’s multiple choices

Hard to define hedge fund industry’s investable universe

Smart beta defies simple definition

Alternative indices still have to prove their worth for investors

Differences narrow as MSCI defends its patch

Rival indices share most constituents but there are differences

Vanguard adopts small provider’s benchmark

CRSP has a long academic track record