Their new partnership is yielding index strategies that target the downside risk of uncertainty.
Syntax Data, a provider of index solutions, is working with Donoghue Forlines, a Boston-based investment firm specializing in active risk-managed portfolios, to offer index strategies aimed at mitigating downside risk caused by the new uncertainty, officials say.
“The strategic partnership recently launched two indexes, the Donoghue Forlines Risk-Managed Momentum Index and the Donoghue Forlines Risk-Managed Dividend Index,” according to the announcement. The indices are multi-factor strategies that offer the following screens or techniques:
- The DF Risk-Managed Momentum Index: quality, risk-adjusted momentum, defensive tactical overlays, and
- The DF Risk-Managed Dividend Index: quality, high dividend yield, defensive tactical overlays;
“Both indexes, available now, are tracked by two separately managed accounts (SMAs) that are approved and available to advisors on the LPL Model Wealth Platform (MWP), Envestnet, Fidelity Managed Account Exchange (FMAX), Orion Portfolio Solutions, Adhesion Wealth, Amplify, Brookstone, Goldman Sachs Folio Institutional, Pershing Manager Gateway, and SMArtX Advisory Solutions TAMP platforms,” officials say. “Further, both strategies are offered as mutual fund and variable insurance trusts.”
“Uncertainty is a reality in today’s equity markets, and these strategies have been designed to attempt to insulate investors against catastrophic ‘black swan’ events,” says Jeff Thompson, CEO and portfolio manager at Donoghue Forlines, in a prepared statement.
Donoghue Forlines offers “a suite of proactive strategies is designed to help advisors and their clients de-risk when market circumstances warrant,” officials say.
Syntax also provides financial data, technology and “codifies business models into a relational system called Affinity Data,” which offers product line revenue data about public companies, officials say.
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