Active Index Tracking

Both index-tracking funds and exchange-traded funds are designed to replicate the composition and performance of the index being tracked. They offer a low-cost investment solution that is ideal for our type of multi-asset portfolios and are easy to purchase and sell. Our investors hold a series of index tracking funds that replicate the major stock markets of the world.

Academic research has proven that over time passive tracker funds, particularly in developed markets, regularly outperform their actively managed but more expensive counterparts. However, the Achilles heel of any tracker fund is that it follows downward as well as upward market movement.

Tracker funds and exchange-traded funds have been a market disruptor. Global tracker funds have grown at an exponential rate in recent years allowing retail investors effective and cheap access to markets. However, their general use has been quite unsophisticated. Crossing Point has taken all the advantages of trackers and reinvented their use.

Crossing Point’s Guardian portfolios use tracker-funds to gain full global asset class exposure. Our dynamic, technical rules-based analysis actively informs us when to hold equities and when to revert to the security of safer investments. This process has been shown to significantly reduce volatility and maximum drawdowns, while providing consistent capital returns.