.jpg)
SIX Swiss Exchange is today introducing an index family for factor-based investments, SPI Multi Premia®. Eight new indices will allow broader diversification and create additional potential for returns. The individual indices are based on the largest and most liquid securities from the SPI® (Swiss Performance Index). 30 stocks that make up the individual indices are selected in each case based on statistical analysis of individual factors. These factors are value, size, momentum, residual momentum, reversal, low risk and quality.
With the introduction of the new index family, which comprises seven SPI Single Premia Indices® and one SPI Multi Premia Index®, SIX Swiss Exchange is extending its index universe. The new indices enable factor-based investment, which takes the quality criteria of individual securities into consideration. In respect of the new index family, these quality criteria are value, size, momentum, residual momentum, reversal, low risk and quality.
The individual indices are based on the 60 largest and most liquid SPI® stocks, from which the 30 stocks that show the best values in respect of one of the factors are selected in each case based on statistical analysis. The securities are weighted in such a way that each contributes to the SPI Single Premia Index® in question in equal measure.
Each of the SPI Single Premia Indices® examines one of the seven factors. The SPI Multi Premia Index® combines the SPI Single Premia Indices® and allows investors to participate in all seven factor premiums.
The Multi Premia® approach was developed and made available for the new index family by Finreon, an established partner for innovative investment concepts in the area of asset management. Dr Ralf Seiz, CEO of Finreon and lecturer at the University of St. Gallen (HSG): "The SPI Multi Premia Index® enables investors to participate in market developments as well as in seven additional, academically proven sources of return on a broadly diversified basis and is therefore suitable as an ideal alternative for a core investment in Swiss stocks."
SIX Swiss Exchange has been carrying out all distribution and marketing activities for Swiss indices again since June 2016. Christoph Landis, Division CEO SIX Swiss Exchange: "We have included many new services and products in our offering in recent years and therefore provided investors with new investment options. The launch of the SPI Multi Premia® index family is a further milestone. It extends our offer of strategic indices and offers investors new opportunities for realizing their investment goals using alternative approaches."
