This new addition extends the range of benchmarks offered by the
German index engineer, providing investors with a price-competitive alternative to
what is currently available in the market.
The previous months have been very active for Solactive with the release of multiple
broad-based indices on the fixed-income side. At the beginning of 2016, the Solactive
Euro IG Corporate Index capturing the performance of investment grade corporate
bonds issued in EUR was launched. This was followed by the introduction in 2017 of
the Solactive Euro HY Corporate Index and the Solactive USD High Yield Corporate
Index, each providing a snapshot of non-investment grade bond markets denominated
in EUR and USD respectively.
Investors can use the series of Solactive benchmarks as cost-efficient indices to
evaluate the performance of segments of the fixed-income market. In addition,
benchmarks can constitute the starting universe on which to build smart beta and
more niche strategies. Alternatively, they can be used as foundations of index-linked
investment products such as ETFs.
Steffen Scheuble, CEO Solactive AG, commented: “In the last two years we have
dedicated a lot of effort to expand our family of branded benchmarks both on the
equity and fixed-income side following increased customer demand. With the Solactive
USD Investment Grade Corporate Index, together with the Solactive USD High Yield
Corporate Index, we are finally completing coverage of the USD-denominated
corporate bond market.”
The Solactive USD Investment Grade Corporate Index is composed of 5,000 corporate
debt issues denominated in USD from both developed and developing markets with an
amount outstanding of at least USD 400 million and a remaining time to maturity of at
least 18 months. The index is calculated as a total return index and is rebalanced
monthly. All index components must have a rating that is investment grade. The index
is based on 1000 at the close of trading on the 31st of January 2005.
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