Indexing is a powerful model for investing as it is the most efficient, intelligent and transparent way to access and track diversified investment strategies. Since the first index was developed in 1884 by Charles Dow, more than 1.7 trillion USD of assets are indexed in exchange traded funds and mutual funds at the end of 2007 in S&P indices alone. This figure excludes the billions that are tracking other benchmark or custom indices and investments through other means than funds.

Custom indexation is a sub-segment of the overall indexation business. Custom indices represent some 30 percent of the larger index providers’ turnover and this portion is growing rapidly. In essence, clients adopt custom indices because they want to define the investable set in the marketplace differently and create tailored solutions.

 

 Asset managers and pension funds

 

 Investment banks and brokers

 

 Research houses and investment consulting firms

 

 Media houses and specialized press