Funderbeam is excited to offer an index to help easily show the overall performance of the companies currently trading on the platform. For those unsure of what an index is, it is described as: “A method to track the performance of some group of assets in a standardized way. Often, indices serve as benchmarks against which to evaluate the performance of a portfolio’s returns.” (Source: Investopedia)
The Funderbeam Venture Index
What is it?
The Funderbeam Venture Index is a “Price Return Index” which means it will only consider price movements (capital gains or losses) of the instruments that are (or have been) part of the index during its lifetime. This will not consider dividends or other aspects from non-tracked instruments.
The index intends on simply representing the overall performance of the Funderbeam Marketplace and is not intended to be investable itself.
Funderbeam makes index calculations based on Marketplace trading activity and in real-time hence recalculating values after every single automatically matched trade is executed. The index is calculated based on the Price Return Index Value logic and reflects changes in the market price (past 5 trades volume weighted average price) of Index Securities during the trading period.
When the Funderbeam Venture Index was launched, some companies had yet to decide to join the new Marketplace. A decision was made to update the entire index once these obstacles were cleared.
On February 1st, 2021 at 6am UCT, we updated the Venture Index engine to version 2.0, which had taken into account all of the previously excluded companies and made the calculation process even more automated.
Because of that, the Funderbeam Venture Index value changed slightly compared to version 1.0, and increased by about 1.2-1.5% depending on specific trading activity until launch. Although the index history was recalculated, the index dynamics had stayed the same.
What companies are included?
All companies that have equity-based instruments (Loan Notes, Shares & Share Units) are represented in the index. The weightings are based on the respective company float on the Marketplace, as this is the best representative of the overall investment return for users.
Any new instrument joining the Marketplace that fit the criteria will be automatically added, or delisted ones removed.
Future Development Plans
Funderbeam has in the pipeline the development of tradable indexes however we will need to ensure the Marketplace is large enough to support these additional features.
More Detailed Information
We are eager to be transparent with our community on the goal of the Funderbeam Venture Index and how it is formulated. We have attached a detailed overview for community members looking to read more: download the PDF copy.
Please feel free to contact customer support should you have any questions on the above.