{"id":63231,"date":"2017-05-24T06:00:00","date_gmt":"2017-05-24T04:00:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/innovation\/solactive-launches-stable-income-europe-index\/"},"modified":"2017-05-24T06:00:00","modified_gmt":"2017-05-24T04:00:00","slug":"solactive-launches-stable-income-europe-index","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/innovation\/solactive-launches-stable-income-europe-index\/","title":{"rendered":"Solactive launches Stable Income Europe Index"},"content":{"rendered":"<p><em> <strong>Solactive, the innovative German index engineer, announces the launch of the Solactive Stable Income Europe Index. <\/strong> <\/em> <\/p>\n<p>This index is replicating the performance of 50 European shares selected on the basis of a screening strategy blending together free cash flow yield, dividend yield and low volatility characteristics.<\/p>\n<p>The index targets investors interested in a smart beta concept that puts more<br \/>\nemphasis on the role played by free cash flow yield, aside from tilting composition<br \/>\ntowards high dividend and low volatility shares. Specifically, free cash flows are<br \/>\ntypically used to provide an insight into a company\u2019s financial health. Being closely<br \/>\nrelated to earnings, they can give investors an indication of future shareholder<br \/>\ndividends, the company\u2019s reinvestments plans and its ability to fulfil financial<br \/>\nobligations.<\/p>\n<p>As such, the Solactive Stable Income Europe Index applies at first a free cash flow yield<br \/>\nfilter which selects the top performing shares in each sector. Companies are then<br \/>\nassigned a composite score which combines low volatility and high dividend yield<br \/>\ncriteria. Only the top 50 companies with the highest score are then chosen as index<br \/>\ncomponents. The index is licensed to Societe Generale Corporate &#038; Investment<br \/>\nBanking and will be used as an underlying asset for structured solutions, leveraging on<br \/>\nthe bank\u2019s solid expertise in this area.<\/p>\n<p>Steffen Scheuble, CEO of Solactive, commented: <em>\u201cNowadays many indices and financial<br \/>\nproducts are constructed around high dividend yield and low volatility concepts. The<br \/>\nSolactive Stable Income Europe adds another element into the mix by screening shares<br \/>\nalso on free cash flow yield, therefore providing an additional filter to evaluate<br \/>\ncompanies\u2019 resilience.\u201d<\/em><\/p>\n<p>Daniel Fermon, Head of Thematic Research at Societe Generale Corporate &#038;<br \/>\nInvestment Banking, added:<em> \u201cIn a constantly changing economic environment, investing<br \/>\nin companies which offer high free cash flow visibility and robustness is a compelling<br \/>\nstrategy. Societe Generale is pleased to partner with Solactive on the launch of this new<br \/>\nindex as we expect this long-term investment thematic to remain key for investors.\u201d<\/em><\/p>\n<p>The Solactive Stable Income Europe Index is calculated as a price return index<br \/>\ndenominated in EUR. Constituents must have a free float market capitalization of at<br \/>\nleast EUR 200 million and a 120-day ADV of at least EUR 1 million. The three most<br \/>\nrepresented sectors in the index are Finance, Industrials and Technology with a<br \/>\ncomposite weight of 76% as of the last rebalancing day. The three countries with the<br \/>\nhighest weight are France, Germany and Switzerland reaching 66% of the index total.<br \/>\nThe index is weighted equally and rebalanced quarterly.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The index targets investors interested in a smart beta concept that puts more<br \/>\nemphasis on the role played by free cash flow yield, aside from tilting composition towards high dividend and low volatility shares. Specifically, free cash flows are typically used to provide an insight into a company\u2019s financial health.<\/p>\n","protected":false},"author":20,"featured_media":63229,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1471],"tags":[1655,1718,1671,1651,1711,1437,1691,2234,1720,1952,2118],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/63231"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=63231"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/63231\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/63229"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=63231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=63231"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=63231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}