Solactive AG, the German multi-asset class index provider, announces today the
release of the Solactive SuperRegion Select Index. The new launch consists of a
smart beta concept incorporating high dividend yield shares that also exhibit low
historical volatility from Asia, Europe and the US. The index is licensed to Credit
Suisse and can be used as a basis for investment products such as ETFs or
derivative instruments.
The index is composed of a total of 75 shares, 25 per geographic region. Shares
are selected by choosing the top securities ranked by realized dividend yield for
every region and applying a historical volatility filter, whereby only the least
volatile shares make it to the final index composition.
In addition, the
construction rules require that the region with the highest performance in terms
of weighted returns, is assigned an index weight of 50%, while the other regions
are allocated a weight of 25%, respectively.
Astrid Ludwig, Head of Indexing, Solactive AG, commented: “Asia, Europe and
the US are home to the most important financial centres in the world. The depth
and liquidity characterising some capital markets in these regions represent an
invaluable resource for investors. The Solactive SuperRegion Select Index can
provide investors with the possibility of taking advantage of potential regional
momentum trends, while seeking to avoid geographical concentration.”
Julien Bieren, Head of Equity Structuring EMEA, Credit Suisse: “Investors have
shown a clear interest in strategies offering them not only a globally diversified
exposure, but also the real possibility of outperforming a static portfolio. The
Solactive SuperRegion Select Index applies a straightforward allocation
methodology overweighting the best-performing region, whilst reducing the cost
of downside protection via a low volatility tilt. The index is therefore particularly
suited for those investors looking for medium to long-term equity exposure, with
the additional benefits of dynamic regional allocation and potentially capital
protection.”
The Solactive SuperRegion Select Index is available as a Price Return (PR) index
denominated in EUR.
The 75 composing shares are weighted according to the
inverse of the 12-month historical volatility. The index is adjusted quarterly and
is based on 100 at the close of trading on the start date, 12th of November 2003.
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