TOBAM awarded US and Australian patents
Paris, June 7, 2011 – TOBAM announced that the United States Patent and Trademark Office has issued US Patent No. 7,958,038 for TOBAM’s Anti-Benchmark methodology.
The patent covers the methods and systems for providing an Anti-Benchmark portfolio. This patent grant is an internationally respected achievement for an asset management firm, and points to the pioneering and innovative character of the Anti-Benchmark Model, whether applied to money management or indexing.
Since 2006, TOBAM has been managing Euro, UK, Japan, US, Global (since 2007) and more recently emerging markets equity portfolios using the innovative Anti-Benchmark methodology.
By maximizing diversification when determining the weighting of assets in the portfolio, the Anti-Benchmark is designed to access risk premium evenly from all risk factors available in the market and avoid the typical risk concentrations embedded in the market cap-weighted indexes. Anti-Benchmark portfolios aim at providing systematically greater returns and lower volatility (20% to 30%) than market cap-weighted portfolios.
Yves Choueifaty, President of TOBAM and inventor of the Anti-Benchmark model, stated, “We are extremely proud to have been granted this patent, an affirmation of the originality and innovative nature of TOBAM’s approach. We see it as an encouragement to maintain the highest degree of transparency with the academic and investment community. Continuing investment in research is a key priority for TOBAM.”
Yves Choueifaty added, “The recognition of the originality of the process occurs at a time when the robustness of the approach has been illustrated during the recent market developments. Through late September 2011, we are proud to be able to show positive gross relative returns and significant risk reduction YTD, over 1 year, 2 years, 3 years and since inception for each and every fund of the Anti-Benchmark live fund range.”
TOBAM has also been awarded a similar patent in Australia.