Below is a product update announcement from the past. Please visit this support article on making use of indexes for the most up-to-date features and workflows.

Product Update - Oct 16, 2024

Plus: displaying portfolio exposures in currency format

Hello First name,

With premium thematic & factor indexes, investment teams can seek targeted exposure to specific trends, industries, or investment factors. Omega Point provides seamless workflows when working with indexes from across various providers, allowing teams to make decisive & precise portfolio action with indexes.
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These index workflows span the investment lifecycle, from index screening & evaluation to managing portfolio exposures utilizing indexes. Today’s release moves beyond index analysis, and focuses on these new workflows:

But first, a long requested feature takes the spotlight — evaluating a portfolio’s factor exposures in currency terms.

To better align with how investments are made, it is now possible to analyze and report factor exposures directly in the portfolio’s base currency. Reporting in this format highlights the intended or unintended bets made on risk factors.

This change saves the selected display unit — between percentage or currency format for factor exposure analysis — as the default view, updating most exposure screens to display in the desired format.

Investment teams can run security screening against the entire risk model universe — including modeled indexes and baskets — in order to find matching securities that meet the specified search criteria.

A robust set of filters — including filtering securities based on asset type, exposures, descriptors, betas, etc — are used to find securities that meet specified criteria, and easily sorted to find a suitable index or basket.
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Clicking on the security name links to a full analysis into the composite’s performances, risks, and exposures, or evaluating select securities side-by-side using the compare screen.
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Index pairs — constructed as a 100 long / 100 short basket set — offer access to market-neutral thematic or factor insights. Today’s release incorporates the constituent’s full weight in their respective basket, calculating their full exposure at the aggregate level. These paired exposures are preserved throughout all index workflows.

Evaluating Indexes relative to each other
In addition to evaluating the pair index at the total level, the underlying baskets can be compared relative to the other, instantly accessing relative performance and trends within these pair baskets.

When evaluating an index within the composite.analyze module, activating the the ‘active’ button visualizes the relative performances, risks, and exposures of one index to another index.

This tool quickly highlights over or underperformance against the thematic index over custom timeframes, helping teams spot some of the key differences between the selected instruments.
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As indexes & baskets are constructed to represent certain sectors, regions, themes, and factors, these instruments provide precise exposure hedging. Research topics allows investment teams to quickly compare & evaluate putting on an index as a hedge within seconds!
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For example, evaluate the effectiveness of using a broad market ETF, a sector ETF, or pure factor indexes as potential hedges.

With this workflow, investment teams have access to an entire library of premium baskets & indexes available to analyze at the speed of thought which hedge makes the best fit for their strategy!

We encourage you to leverage Omega Point’s index workflows, combined with these premium indexes & baskets, to gain a full understanding of your portfolio’s positioning. It is vital to use the numerous lenses and tools available in Omega Point to eliminate blind spots, unlock the full potential of your portfolio, and ensure your strategy is aligned with your outlook.
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Please reach out to [email protected] to request a demo of all the newly added workflows when working with premium indexes, or access this support article that highlights all the ways to natively working with indexes within the Omega Point application.
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Enjoy!