08.11.2017

BRI Launches The Quality Small Cap Index

BRI Partners announced the launch of the BRI Quality Small Cap Index? (symbol: “BRIQSC”) Powered by Wilshire?. Created and owned by BRI Partners, LLC (BRI), with Wilshire retained as index consultant and calculation agent, this unique index provides a first of its kind enhanced beta benchmark for US small cap equities.

Adam Brass, founder of BRI, said, “The new BRI Quality Small Cap Index delivers enhanced beta returns previously available only through active strategies for a fraction of the cost. Investors and asset managers are deeply engaged in debate about alpha, beta, smart beta and passive versus active strategies. At BRI we have a clear focus. We are raising the bar on outdated passive market beta investments to deliver enhanced performance to investors.”

The BRI Small Cap Index uses a systematic, rules-based approach to create a dynamic portfolio of US small cap equities delivering the market beta plus enhanced factor beta unique to the stocks of small capitalized companies. The index will be re-caculated periodically.

“Hundreds of billions of dollars have shifted from active strategies to passive index investing for good reason: nearly 85% of active managers consistently underperform their benchmark,” added Brass.  “Now investors can get the benefits of active in a passive product.”

Uniquely, the BRI Quality Small Cap Index leverages various selection criteria metrics to avoid the following criteria:

  • Stocks that are unprofitable
  • Stocks that are the most volatile
  • Stocks that have the highest short-interest

This infogram illustrates the point: https://www.brindexsolutions.com/2017/07/27/infographic-smallcap-quality/

“Aligned with Wilshire as our index consultant and calculation agent, our objective to create a family of indexes that deliver enhanced beta on both traditional long-only and absolute return strategies continues to build,” said Brass.

Michael R. Kennedy, Managing Director at Wilshire Associates, said, “Wilshire Analytics is excited to see a third Powered by Wilshire custom index offering come to fruition through BRI. Wilshire’s deep index and analytical expertise combined with yet another dynamic, rules-based strategy from BRI shows the value of a Powered by Wilshire approach which can help clients bring new index ideas to market quickly.”

For more information about the newly launched BRI index, please visit https://wilshire.com/indexes/poweredbywilshire/bri-quality-small-cap-index.

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