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SG Global Quality Income Index

Index level: 1636.09 as of 11/23/2017

Main characteristics

Bloomberg code SGQINTR
Inception date 05/14/2012
Return type Net Return
Currency EUR
Calculated by Solactive

Objective

The SGI Global Quality Income Index (the “Index”) is a systematic strategy that tracks a basket composed of stocks that the Index’s methodology determines are both dividend paying and exhibit traits of high quality companies.

Mechanism

The Index selects 75 to 125 stocks from an investment universe of non-financial companies from certain developed countries having (1) a free-float adjusted market capitalization of at least $3 billion, times an adjustment factor, and (2) a six-month average daily volume of $15 million, times an adjustment factor.  From this universe, the systematic methodology assesses companies on a range of factors designed to identify the quality of a company’s business, its creditworthiness, and its ability to provide attractive and sustainable dividends. To meet the business quality criteria, a stock must score at least seven out of nine factors designed to indicate the quality of a company’s business, such as its return on assets and cash flow from operations. To meet the creditworthiness criteria, a stock must rank in the top 40% of all securities in the eligible universe using a “distance to default” methodology, which seeks to identify the financial health of a company. To meet the dividend yield criteria, a stock must have a dividend yield greater than 4%.

 

The Index is subject to quarterly review and in order to remain in the Index, a stock will have to maintain (1) a business quality criteria score of 5 or better, (2) a creditworthiness score that ranks in the top 60% of the eligible universe, (3) a dividend yield greater than 3.5%, (4) have a free-float adjusted market capitalization of at least $2 billion, times an adjustment factor, and (5) maintain a six-month average daily volume of $10 million, times an adjustment factor.

 

If there are fewer than 75 stocks or more than 125 stocks that meet the eligibility criteria described above, the Index methodology includes procedures designed to ensure there will be at least 75 stocks by reducing the eligibility criteria. If more than 125 stocks meet the eligibility criteria, the Index will include those stocks that are in the Index and that continue to meet the applicable eligibility tests, along with the number of stocks ranked by dividend yield necessary to reach 125 stocks.

 

The SG Global Quality Income Index (EUR - NTR) 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.


The SGI Index(es) 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(es). The Index(es) 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 Indexes and/or trade marks of the Index(es) or the levels of the Index(es) at any time or in any other respect.

 

 

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