JPMorgan Chase has launched a series of alternative beta indices, with plans for a fund based on them for next year.
The Alternative Index Series features 26 indices, covering equities, interest rates, foreign exchange and commodities. The indices use momentum, carry and satellite strategies.
“There is no generally accepted framework for thinking about alternative beta,” Thomas Salter, head of equity derivatives product development, told the Financial Times. “We’re talking about creating indices that characterize the market in a transparent and credible way.”
The indices are fully tradeable, Salter said. And JPMorgan plans to profit from that, launching a UCITS III-compliant fund tracking several of them next year.