UBS has used The Solactive Guru Index (GURU) as the underlying index for an open end index certificate listed on the Frankfurt and Stuttgart stock exchanges.
The Solactive Guru Index tracks the price movements of the top US listed equity holdings of a group of hedge funds.
The selection is based on 13F Filings, which are publicly available documents that all hedge funds with more than USD100 million in US equity investments are required to report to the SEC on a quarterly basis.
The objective of the index is to track holdings for which the 13F information is most valuable. For instance, investors with high turnover are eliminated from the pool.
Henning Kahre, head of equity indexing, Solactive, says: “Hedge fund indices have been generating significant interest from the market over the past few years, allowing index-linked products to replicate active strategies via a passive tool.”
Steffen Kapraun, structured products expert, UBS, says: “The UBS Open End Index-Certificate on the Solactive Guru Index enables German investors to gain exposure to the high conviction stock picks of leading hedge fund managers. At the same time they can benefit from the cost efficiency and liquidity offered by structured products.”