Edhec-Risk Institute has launched the FTSE Edhec-Risk Efficient Index Series.

The series is the culmination of a research programme on indices and benchmarks that the institute has been conducting since it was founded in 2001.

The indices are based on the idea that the goal for a rational investor is to hold a portfolio that achieves the highest risk-adjusted performance. Therefore, one should focus on designing a portfolio with the highest reward-to-risk ratio - i.e. with the highest Sharpe ratio.

The aim of the efficient indexation approach is to provide investors with benchmarks that reflect the possible risk-reward ratio from a broadly diversified stock market portfolio, and which are a proxy for the normal returns of an exposure to equity risk.

To date, the following five indices in the FTSE Edhec-Risk Efficient Index Series have been launched: FTSE Edhec-Risk Efficient Index Eurobloc; FTSE Edhec-Risk Efficient Index United Kingdom; FTSE Edhec-Risk Efficient Index United States; FTSE Edhec-Risk Efficient Index Japan; and FTSE Edhec-Risk Efficient Index Dev. Asia Ex. Japan.