Navigating the complexities of benchmark blending
Blended benchmarks, created by combining multiple market indices, are used by asset managers, asset owners and capital markets firms to calculate fees and to provide a point of comparison for investment and operational strategies.
Blend Modeling from RIMES
RIMES Blend Modeling enables users to create and execute index-level blends in Excel in just a few steps. Leveraging RIMES’ comprehensive coverage of indices, and years of expertise in blending management, RIMES Blend Modeling makes it easier than ever for the investment community to tailor blends to a range of investment strategies including funds, ETFs and multi asset funds. With RIMES, users benefit from robust calculation capabilities and enhanced blending functionality delivered in a sandbox environment for effective, risk-free blending.
RIMES Blend Modeling delivers benefits to a broad range of benchmark users including:
■ Quant and research teams
■ Multi asset teams
■ Asset allocation teams
■ Product teams
■ ETF issuers
RIMES’ Blend Modeling tools replace time consuming and complex manual processes with fast and efficient benchmark creation and execution. Through automated and scalable processes financial professionals can quickly address their benchmark blending requirements, reduce their overall risk, and spend more time on core business activities. Firms using our tools can also benefit through:
 |
|
|
|
| Searching RIMES’ database of more than 3.4 million indices | Simple processes to retrieve, manipulate and store data | Ability to break down views of sub-index components and constituents | Ability to receive completed and validated blends via a regular RIMES data feed |
Features of RIMES Blend Modeling
Using RIMES’ Blend Modeling tools couldn’t be easier. Users can store index-level blend definitions locally, download them from RIMES Online, or create blends in Excel through RIMES’ new add-in tools. RIMES enables users to:
● Define a blend’s weighting, either by the user or against market capitalization
● Use their own identifiers and names
● Define the blend’s base value, start date, and rebalance date
● Adjust the frequency of blend rebalancing
● Leverage market capitalization scaling to align with various data partners’ methodologies
● Add a cash component option with static or no return
● Manage multiple blends
Key use cases
With RIMES Blend Modeling tools, firms can enhance blending processes for a number of value-add use cases including:
● Measuring performance in back-test modeling
● Accelerating time-to-market for new funds
● Testing and launching thematic strategies and innovative investment styles
● Validating blend themes
Data Management is in our DNA: contact us to receive more information about RIMES Blend Modeling or how to receive your blends through the RIMES data feed.
RIMES-Blend-Modeling-Jan-2021