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SGI Global Quality Income Risk Control 10%

Index level: 99.88 as of 08/12/2017

Main characteristics

Bloomberg Code SGMDGQ10
Inception Date 15/06/2015
Return Type Price Return
Currency EUR
CALCULATED_BY Solactive

Objective

The Global Quality Income Risk Control 10%, "Index" aims to provide an exposure to the SG Global Quality Income, "Sub-Index" with a volatility target mechanism. The aim of the "sub-index" is to create a robust compounding machine through the creation of a portfolio of companies selected solely on the basis of their ability to provide a high quality income stream to their owners.The requirement that selected businesses enjoy high quality economics ensures dividends are unlikely to be cut. The nature of dividend flows as a share of revenues suggests they will tend to rise, thus affording yield hungry investors a degree of inflation protection. 

Mechanism

The Quality Income indices range aims at selecting stocks with the best potential for long-term performance by focusing on companies generating high levels of revenues over the long term. The investment universe is global, to profit from diversification on several geographical zones.

Three consecutive filters are applied:

-   A Quality filter: every company is ranked according to a Quality score (ranging from 1 to 9) including elements on profitability, level of financial leverage, operational efficiency, etc. Only companies with scores above 7 are selected.
-   Distance to Default filter: only companies ranking in the top 40% of the universe are selected.
-   Dividend filter: only stocks paying a dividend yield at or above 3.5% are kept in the selection.


SGI Global Quality Income Risk Control 10% Index (the “Index”) is the exclusive property of Societe Generale. Societe Generale has signed a contract with Solactive AG wherein Solactive AG undertakes to calculate and maintain the Index. The Index is not sponsored, promoted, sold or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Index and/or Index trade mark or the Index Level at any time or in any other respect.