Custom Smart Beta Portfolios

Rules Based Portfolio Construction

A-Dex Active Indices are rules based portfolios. You can tailor make your own set of rules and we can simulate and assist you refining them.  Thereafter, you can run your own “Smart Beta” fund following the rules you have chosen. We can provide a service where the weightings in this fund can be calculated for you to track on a monthly basis.  A-Dex Active Indices are also constructed specifically to out-perform specified benchmarks, at a fraction of a the traditional active management cost.

Having selected a top-down allocation to funds and rule-based portfolios, A-Dex provides a drilled-down Look-Thru® blend to track. The advantages of such a blend rather than investing in individual ETFs include:  the netting off of trades, a transparent view and performance attribution of the underlying and the seamless implementation of rebalancing that does not involve the dis- and reinvestment between different funds.

Our powerful object orientated Kraken engine is extremely flexible in the range of rules it can apply to portfolio construction. A-Dex has also developed proprietary technology including the Cascading Proportional Matching Method of turnover reduction. Risk and turnover optimised portfolio holdings are rebalanced for the client on a regular basis.

Active Index construction process


  • Filter universe by MV, liquidity, and blacklists

    • Rank by primary signal (can be multi-factor, dynamic, or constant signal of 1)

      • Select maximum number of shares and weight constraints

        • Apply sub-signal filters

          • Get to maximum number of shares

            • Apply risk optimisation and constraints

              • Apply turnover optimisation

                • Apply benchmark relative risk control

A-Dex’s Active Index Look-Thru Core® delivers specific fund management advantages over using an ETF

Complete transparency offering a holistic view with the ability to easily analyse the underlying holdings.

Seamless reweighting reducing disinvestments avoiding capital gains events

Risk measurement and control. Managers can explicitly set overall fund risk / tracking error levels and its composition.

Cheaper, through netting-off trades within a single portfolio and one fund administration fee, and no ETF fees.

A-Dex Active Indices deliver risk-optimised factors in a risk-optimised blend with unique top-down blend controls. Our Look-Thru Core® facilitates fund visualisation and control that Multi-Managers will almost certainly not be able to access utilising their existing service providers.

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