MarketGrader.com, a retail-oriented quantitative equity research firm, launched eighteen international indices in an effort to expand subadvisory revenues received from licensing its indices to create financial products.
MarketGrader was launched in 2003 and benefited from the Global Research Analyst Settlement after it was selected to be distributed to clients of UBS, Credit Suisse and Lehman Brothers. In 2011, it formed an investment adviser affiliate, MarketGrader Capital LLC, so that it could collect subadvisory fees from licensing its indices.
The biggest driver of revenues for MarketGrader Capital is the Barron’s 400 Index ETF (BFOR) which was launched in June 2013 and now has $212 million in assets. MarketGrader calculates the equal weighted index based on the growth, valuation, profitability and cash flow metrics it uses to select stocks.
According to its Form ADV, MarketGrader Capital charges subadvisory fees ranging from .85% to .45%. Subadvisor revenues would total around $950,000 at a fee level of .45%, but it is likely that the fees are shared between Barron’s and MarketGrader.
MarketGrader’s new international indices are calculated from its coverage of over 35,000 companies across 100 markets and backtested to 2007. The indices include the MG Developed Markets 300, MG Emerging Markets 300, MG Global 1000 and fifteen region-specific or country-specific indices.
MarketGrader and its adviser affiliate were founded by Carlos Diez, who started MarketGrader in 1999 immediately after graduating from Pepperdine University in Malibu California with a B.S. in Economics.
The full press release can be found at http://www.businesswire.com/news/home/20150401005235/en/MarketGrader-Launches-International-Global-Index-Series#.VR0qA-Hrutw