The Best Select Fund Index aims to provide the performance of a dynamic multi-asset basket of mutual funds with a volatility control mechanism. The Index is composed of a basket of 8 diversified Mutual Funds, selected according to their diversified allocations and active management, with the aim of generating stable returns in a wide range of market scenarios.
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The possible Index universe is :
Old Mutual - Global Equity Absolute Return Fund
CPR - Croissance Reactive
DWS - Multi Opportunities
Fidelity Funds - European High Yield Fund
Pimco - Global Bond Fund
Sextant- Grand Large
DNCA - Eurose
M&G - Optimal Income Fund
The index is reviewed and rebalanced on a quarterly basis (January, April, July and October). The 5 best performing Basket Component are selected according to their performance over the elapsed quarter and given weights ranging from 30% (for the best performing) to 10% (the 5 th top performing component).
A volatility target mechanism is applied to maintain the volatility level of the index close to 4%, in order to reduce significant price fluctuations and provide investors with protection against spikes in volatility
Exposure to the basket of Underlying Funds is calculated as the ratio between the target volatility of 4% and its realized volatility, calculated over the last 50 business days with a maximum exposure of 150% and a minimum of 0%. The Index is daily FX hedged in PLN.
The Best Select Fund Index (the “Index”) is the property of SG, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) (“S&P Dow Jones Indices”) to calculate the Index. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“SPFS”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and, these trademarks have been licensed to S&P Dow Jones Indices. “Calculated by S&P Dow Jones Indices” and its related stylized mark(s) have been licensed for use by SG. Neither S&P Dow Jones Indices, SPFS, Dow Jones, nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.