Rebasing in the index and benchmark calculation

You can use the "Rebasing" parameter in the "Index composition" dialog box to calculate your own benchmarks. You can open the dialog window by selecting the command VALUE PAPER, INDEX COMPOSITION in the context menu of an index object with the "Index composition" option activated (in the quote properties). At the top of the "Rebasing" field, you will see the possible settings that you can select by activating the respective option. These settings are explained in more detail below.

Without rebasing

In "Without" mode, the weights are interpreted as absolute, i.e. the index is to be seen as a basket filled with a number of each security (or other index element) corresponding to the weight. The calculated index price then describes the performance of this basket (divided by the base factor) without the shares of the securities in the basket changing.

With rebasing

When using an index as a benchmark, e.g. for portfolio management, a proportional weighting of the elements is assumed. This means that the weight does not describe the number of securities, but their percentage share in the basket. These shares are converted into number values on certain key dates on the basis of current prices and held for a certain period of time. During this time, the shares will shift with the price changes until the number values are readjusted. This readjustment is called rebasing a benchmark. The Infront Portfolio Manager offers various rebasing modes for automatic rebasing:

• Daily
  Here the rebasing is carried out on each trading day, i.e. the calculated number values apply for exactly one day.
• Weekly
• Monthly
• Quarterly
• Half-yearly
• Annually
• In each period

Here, the rebasing periods depend on the time series consolidation, i.e: If weekly or monthly data is displayed, the rebasing also changes to weekly or monthly.

The absolute numbers used to describe the weights therefore no longer play a role here, i.e. it is not a must that the weights add up to 100%. What counts is their share of the total weight.