Inovestor, a Montreal-based firm specializing in stock market analysis software for professional investors, is partnering with NASDAQ to create a standard portfolio of Canadian equities that, they predict, could serve as a foundation To newly traded funds (ETFs) offered to US investors.
“This is really the beginning of an American adventure! “Inovestor’s founding president, Pascal Lefrançois, welcomes on the other end of the line. It is officially today that this new index, named NASDAQ Inovestor, will be launched at the daily closing ceremony of the markets at the head office of NASDAQ in New York.
“This is good news for Montreal and for Quebec. I think that if they chose a fintech from Montreal, it is a good indication of the potential, “explains Pascal Lefrançois.
” These are products that will be designed and developed in Quebec for the international market. - Pascal Lefrançois, Founding President of Inovestor
This index includes 25 Canadian stocks selected on a daily basis by market analysis software designed and marketed by Inovestor, StockPointer. This software is used by professional investors to filter and select stocks based on composition criteria for various types of portfolios.
Among these standard portfolios, it is the portfolio of Canadian equities that has performed best in recent years compared to its benchmark, the S & P / TSX in the case of the Canadian stock exchange. According to Inovestor, this “outperformance” of the Canadian Standard Portfolio since its launch in 2008 is 8% per annum in addition to the performance of the S & P / TSX Index.
NEW REVENUES FOR 2017?
In addition, Inovestor reports that several of its customers using the StockPointer system to find undervalued shares on the stock exchange have expressed interest in an “investable product” and more accessible to their investor clients, such as ETFs Based on high-performance type portfolios.
This interest also motivated the reconciliation between Inovestor and NASDAQ a year ago to explore how to create and market a new portfolio of Canadian equity equities with US investors.
“This is not an income-generating index as long as a firm is not making products that can be invested. But it is expected to generate revenue by the end of 2017. […] There is a clear interest in the product. They are relatively confident they will find a partnership in the 1 st quarter of 2017 “, says Pascal Lefrançois.
The partnership marks an important milestone today with the official launch of the new NASDAQ Inovestor Canada index.
This will be followed by a marketing tour by executives of both companies with US firms that create and manage ETFs, a fast-growing sector of the stock market.