We are pleased to announce that we have entered into an agreement with Factset to supply us with data for stocks all over the world.
Beginning in the second quarter of 2020, all subscribers will be able to use not only the S&P data we have currently available, but also Factset’s data for North American stocks and ADRs. In the third quarter, we will make data for stocks on the European, Asian, and Australian exchanges available to any subscriber who wants to access that data (we have not set pricing yet, but it will be reasonable). We will be cutting off access to S&P data at the end of June 2020, by which time the transition to Factset will be complete.
Here are a few of the advantages subscribers will see:
[]Longer backtest periods. Rather than the current fifteen-year limit, ultimate-level subscribers will be able to access twenty years of data, and perhaps more.
[]Improved classifications. Factset uses its own classification system, RBICS, which will replace GICS. This classification system has a number of advantages over GICS. To quote Factset, RBICS offers “a comprehensive structured taxonomy to classify companies by what they primarily do. RBICS delivers a granular view for investors by classifying companies using a bottom-up approach according to the products and services they provide. By combining this approach with a top-level grouping based on companies’ behavior similarities and stock co-movement, FactSet RBICS delivers unprecedented precision.”
[]More data fields. We will be introducing more line items, more estimate items.
[]No license required for professionals. Professional users will no longer require a license with a data provider in order to access Portfolio123’s data.
The primary reason for the change was that S&P wanted to change the ground rules of our partnership to such a degree that it would have effectively put us out of business. S&P wanted to shorten our backtest period to ten years of fundamentals and five years of estimates; they wanted to require that all users, not just professionals, register with them for pre-approval; they wanted to require all professionals, no matter how low their AUM, to purchase a license from them (their going rate is around $20,000 a year). Switching database providers became not only desirable, but necessary.
As we transition to a new data provider, there will be bumps in the road. Many stocks will be reclassified in different industries. The dates on which announcements and statements became available will change. There may be a few fields that we will no longer be able to offer. The backtested performance of your models will change, sometimes drastically. But we will have all hands on deck to help our subscribers deal with these issues.
And our subscription prices will not increase. Our European and Asian/Pacific subscriptions will be priced comparably with our North American subscriptions, but subscribers to more than one region will receive substantial discounts.