- More than 40% increase in number of indexes measuring environmental, social & governance (ESG) criteria in the past year, a new record for the survey.
- Indexes covering fixed income markets grew 7.1% in the past year and nearly 15% in the last two years.
- Index providers responded to year of market disruption & global pandemic by not only meeting those challenges but by expanding their global product offerings & diversifying into new asset classes.
Index Industry Association (IIA), the industry trade group for the global independent index provider community, is pleased to share the results of its fourth annual global benchmark survey. This year’s survey shows an industry that is growing and diversifying its products and services to meet expanding investor needs. Main growth drivers this year include indices measuring environmental, social and governance (ESG) criteria, which saw a 40.2% increase, and fixed income indices, which had a 7.1% increase.
Rick Redding, the CEO of IIA, commented: “The survey’s 2020 results demonstrate a highly competitive industry that continues to broaden its offerings to meet investor demand. Indices today are transparent and reliable representations of market segments covering a wide spectrum of asset classes and investment themes, and an integral piece of the global investor’s toolkit.”
Another Year of Innovation, Growth & Healthy Competition for the Index Industry
While 2020 has been marked by unprecedented levels of market volatility, disruption and investor uncertainty amidst the global Covid-19 pandemic, the overall number of indices climbed by approximately three percent to 3.05 million as investors looked to the IIA members for solutions, unbiased signals and timely data. The IIA members also continued to innovate and diversify, responding to investors’ needs with new offerings, particularly in the ESG and fixed income spaces.
Have a look at the latest #index survey results by the @IndexIndustry Association, IIA! It records an explosive 40.2% increase in #ESG and a 7.1% increase in #fixedincome. Full results here: https://t.co/JO2pkK0a3V pic.twitter.com/lfEY3ovcH4
— Qontigo (@Qontigofinance) November 3, 2020
The number of ESG indices globally rose by 40.2% in the past year following a 13.9% rise from 2018 to 2019, registering the highest year-on-year increase in any single major index class in the survey’s four-year history. Fixed income growth has also been steady, with a nearly 15% rise in the number of indices measuring global bond markets over the past two years, with notable growth in the ESG sector within fixed income as product issuers look to build more-diversified and ESG-compliant products. Added Redding, “Delving deeper, growth in fixed income was demonstrated across the full range of index subcategories, whereas equities growth was primarily concentrated in industry/sector, thematic, and ESG-related products.”
Source: IIA
NEWSLETTER SIGN UP
And receive exclusive articles on securities markets
As Technology Evolves, Asset Managers Adapt and Innovate
Citi Changes Organizational Structure
SEC Charges Virtu for Disclosures Relating to Information Barriers
ICE Futures Singapore Partners with CoinDesk Indices
Related articles
-
The exchange is picking up the pace of migrating datasets onto the Microsoft platform.
-
The new definitions better reflect the way that fund managers define ‘smaller’ companies.
-
Equity index options had record ADV in the first quarter of this year.
-
Traders can signal and participate in exceptionally large or illiquid block trades with one click.
-
While lit market operators question dark liquidity, more exchanges are opening their own dark platforms.