The OPENMETRICS-JIMAG GLOBAL EQUITY REGIONS STABILITY INDEX is available via LIXX Index Innovation Deutschland since 8 November 2019. This systematic equity index allows to track a global stock portfolio efficiently and at the same time offers an integrated “airbag” against significant losses in the event of severe market crises.
The index dynamically weights, using a rule-based methodology, six exchange-traded equity ETFs with regional allocations in developed markets in North America, Europe and the Pacific, emerging markets in Asia, EMEA and Latin America, and one money market ETF.
The conceptual model for the weighting assumes that equities may experience sudden changes (regime changes) in their price dynamics. A regime change occurs when new prices of an equity instrument cannot be explained by the dynamics of the previous prices, i.e. there is a change in the expected trend and/or a change in the expected variance.
The objective is to provide a better risk/return profile compared to a passive allocation in equity segments, combined with protection against significant losses in severe market crises.
The underlying technology, the SBX Structural Break Index® from OpenMetrics Solutions, a spin-off of ETH Zurich, has been used productively by institutional investors for risk management for several years.
This index has been launched in cooperation with JACOT Investment Management AG (JIMAG) as an index sponsor and serves as the basis for the issuance of investable products such as the “Tracker Certificate on OpenMetrics-JIMAG Global Equity Regions Stability Index” from Leonteq Securities AG www.leonteq.ch.
About JACOT Investment Management AG
JACOT Investment Management AG is an independent Swiss asset manager for wealthy individuals and families www.jimag.ch.
About LIXX GmbH
LIXX is an innovative index provider based in Germany and specializes in the distribution of active indices www.lixxinnovation.com.
About OpenMetrics Solutions
OpenMetrics Solutions LLC is a technology company founded in 2016 and recognized as an ETH spin-off. It focuses on advanced risk management methods and financial engineering. Activities of OpenMetrics Solutions are: Transfer of academic research into commercially viable products and services, advanced risk management solutions, and technology consulting for the financial industry www.openmetrics.ch.