German index producer, Solactive, has launched the Solactive US Top Billionaire Investors Index, which it describes as stocks that are leading constituents in the portfolios of investment personages with a longstanding investment track record and success.
The index strategy is designed to mimic the decisions of professional investors, based on their experience and information advantage, which they possess through their exclusive access to advanced information. The index serves as the underlying for the SCB Billionaire Fund issued by Thai investment corporation SCB Asset Management.
Solactive writes that passive investing has come a long way. “Recently, more sophisticated strategies appeared at the surface, some of them with a strong quantitative background or specific thematic exposure. For both institutional and retail investors, the possibilities to allocate their assets are sheer endless, and it requires them a lot of time to make headway until decisions are made. For those investors, who do have neither the time nor resources to make substantiated investments, major Thai investment house SCB Asset Management issued its SCB Billionaire Fund, which tracks the Solactive US Top Billionaire Investors Index.”
Solactive describes the rationale behind the strategy of the index as very straightforward and smart.
“On the one hand, the stock market is very volatile and, for regular investors, opaque. On the other hand, picking the right assets is vital for them to participate in positive market movements. Instead of researching on their own account, regular investors can simply replicate the investment strategies of big and established US investors, which made their fortune through investing themselves, with the SCB Billionaire Fund. These big US investors have a competitive edge since they can take recourse to research and market data, which is usually hidden from the average investor.
To identify the index constituents, the Solactive US Top Billionaire Investors Index utilises public data gathered from regulatory filings with the SEC. Only the 30 highest conviction stocks, which are most prominent and common in billionaires’ portfolios, are chosen for the index inclusion from its underlying universe, the Solactive GBS US Large & Mid Cap Index.
“The Solactive US Top Billionaire Investors Index is the smarter way of outsourcing the gathering of market intelligence,” says Timo Pfeiffer, Chief Markets Officer at Solactive. “The securities in the index play a crucial role in billionaires’ portfolios, making them also a perfect fit for investors who want to benefit from market insights of the pros. We are honoured that SCB has chosen Solactive to realise this clever index methodology, and we are very pleased to expand our footprint in the APAC region once more with this release.”