Bringing you live news and features since 2006 

Société Générale Index launched as “next generation of indices”


Société Générale has established Société Générale Index, which it says constitutes a new generation of indices designed to meet grow

Société Générale has established Société Générale Index, which it says constitutes a new generation of indices designed to meet growing market demand for innovative index solutions that are distinct from today’s major market indices.

SG says 15 indices have already been launched and that the number of SGI indices will increase significantly by the end of the year. The indices can be accessed by investors through exchange-traded funds and Société Générale certificates, as well as by using structured products.

According to the bank, the indices draw on its strength as a leader in equity derivatives. In contrast with more traditional indices, the SGI benchmarks seek to provide both systematic strategy (_-research) and thematic (_-research) indices offering access to new asset classes.

The _-research indices are discretionary and/or quantitative indices based on Société Générale’s own research that aim to outperform traditional reference indices. For example, the SGI Fed Model index systematically optimises equity and bond weightings in order to beat a benchmark index equally balanced between these two asset classes.

Similarly, the SGI Vol Target BRIC aims to outperforming the S&P BRIC 40 index benchmark through an allocation between risky (S&P BRIC 40 index) and non-risky (US Libor 1-month) assets, taking advantage of the relationship between bear markets and rising volatility observed in the Brazilian, Russia Indian and Chinese markets.
The _-research indices aim to reflect high potential investment universes that are difficult to access compared with traditional indices. For example, the Wowax index aims to track the water industry via a selection of companies that are the most representative of the industry.

Other funds of this type cover markets such as European renewable energy, private equity, waste management, synthetic five-year bonds, world alternative energy, bio energy, solar energy, timber and uranium.
To create the indices, SGI has developed partnerships with leading calculation agents. For example, the integrity and independence of several SGI valuations is maintained by daily calculation from Standard & Poor’s.

Société Générale is one of the largest financial services groups in the eurozone, employing 120,000 people worldwide in the three key businesses of retail banking and financial services, global investment management and services, and corporate and investment banking. SG is one of the leading banks worldwide in euro capital markets, derivatives and structured finance, and one of the largest in the eurozone in terms of assets under custody (EUR2.45trn at the end of March) and under management (EUR441.4 billion).

Latest News

ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..
Investors urgently need greater access to diversified investment strategies aligned with the Paris Agreement on climate change if the world..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by