Technology Infrastructure Behind the Successful Index Vendor Switch

Sep 6, 2019

Ryedale, the industry’s leading investment management software and solutions provider, has recently assisted in the successful switch of fund benchmarks for FinEx, Russia’s first ETF fund provider. Seven of FinEX’s funds were transitioned from MSCI indices to innovative and cost-effective indices from German-based Solactive. FinEx already uses the full suite of system technology from Ryedale for their portfolio management. In the case of the benchmark switch, the transition of the funds required an agile system technology due to different approaches in how indices are populated and disseminated to the end client.

Ryedale’s robust portfolio management system (PMS) proved invaluable because of its ability to harmonize the index data so that the fund managers had full confidence to implement the transition smoothly and efficiently. The systematic and agile PMS environment allows fund managers to concentrate on their core fund management duties, without being distracted by differences in classification approaches used by various index provider and information sources. An expertly built system is a crucial component of a successful index platform.

The emergence of more benchmark providers creates new standards for index-based strategies in investment and risk management technology. As indexation becomes more complex with the incorporation of alternative weighting methodologies and extra factors, like ESG, the ability for seamless integration on a robust platform is critical. Ryedale supports this trend with its core business purpose to offer technological solutions that help clients to develop better investment products.

Ryedale’s unique investment platform has been built upon the experience and expertise of ex-BGI technology and investment practitioners who were instrumental in the success of the passive investing uptake.