Lyxor Asset Management has launched an exchange-traded fund on the NYSE Euronext exchange which is based on the Quality Income Strategy Index, designed by Andrew Lapthorne and Dylan Gryce of Societe Generale Research.
The fund offers global exposure to the performance of equities from high quality companies that offer above average, and sustainable dividend yields.
Equity returns have been extremely volatile over the past decade. This has pushed many investors who are looking to generate yield and/or limit drawdown risk towards the bond markets. Quality Income stocks represent the most stable companies in the world and can offer investors a less volatile way to benefit from a potentially attractive level of income and capital growth.
The Quality Income strategy, which has been designed by SG Research, aims to provide bond-like features (lower risk income) along with equity-like performance (capital appreciation).
The Lyxor ETF SG Global Quality Income seeks to provide investors with high-quality exposure to global developed equity markets through the SGQI Index. This index has been designed by Societe Generale Research using a proprietary index methodology, which focuses on stocks that offer a high dividend yield. Stocks are selected from a universe of high-quality companies which are deemed to offer profitability, operating efficiency and balance sheet strength.