Bank of America launches NIMARO, the new quantitative strategy index in collaboration with Newton IM
14 OCT, 2024
Bank of America announced today the launch of the Newton Adaptive Risk Overlay Index (NIMARO index), whose aim is to offer investors a diversifying strategy to cover tail risks and reduce portfolio volatility. The index will be managed by Newton Investment Management, a leading manager specializing in multi-assets and equities, which is part of BNY Investments.
Bank of America, as the index administrator, will provide the basic elements of transparent and systematic coverage for the index. Acting as the index advisor, Newton's multi-asset team will manage the strategy, using the company's patented coverage framework and its multi-asset pedigree dating back more than three decades.
The NIMARO index aims to offer a hedging solution that is "the best of both worlds" and leverages the implementation and execution capabilities of Bank of America's Quantitative Investment Strategies, along with Newton's extensive experience in tail risk hedging and active management.
In times of high market volatility, investors continually seek diversification to protect their portfolios. The NIMARO index offers investors access to innovative developments in tail risk hedging, and we are delighted to partner with Newton to utilize their three decades of experience in this field. This is combined with Bank of America's first-rate operational infrastructure and intellectual property.
Narvir Brar, Head of EQD Sales in the UK for Bank of America
The NIMARO index is designed to provide an effective risk management and portfolio construction solution for investors. Offering the strategy through an index allows a range of implementation options, giving investors flexibility to achieve their investment goals and objectives.
Mitesh Sheth, CIO of Multi-Asset at Newton IM
