Axioma And CSI Launch An Innovative Suite Of Optimized Factor Indices For The China A-Share Market

Axioma, Inc., a leading provider of advanced tools for risk management and portfolio construction, and China Securities Index (CSI), a leading provider of equity benchmarks, today announced the launch of six innovative factor indices on China’s A-share market. The launch is an important step in the ongoing development of China’s equity market.

The series of factor-based indices features:

	Code	Index Name	Abbreviation
1.	H30125	CSI-Axioma 300 Optimized High Growth Index	Optimized Growth
2.	H30126	CSI-Axioma 300 Optimized High Value Index	Optimized Value
3.	H30127	CSI-Axioma 300 Optimized High Predicted Beta Index	Optimized High Beta
4.	H30128	CSI-Axioma 300 Optimized Low Predicted Beta Index	Optimized Low Beta
5.	H30129	CSI-Axioma 300 Optimized High Volatility Index	Optimized High Volatility
6.	H30130	CSI-Axioma 300 Optimized Low Volatility Index	Optimized Low Volatility

The series of indices will provide investors with additional tools to manage risk and cover value, growth, volatility and predicted beta factors. The indices will be based on the popular CSI 300 index and will consist of a basket of securities, chosen from the underlying index and constructed with Axioma’s optimization technology and factors derived from Axioma’s China Robust Risk Model.

“These new indices have been scientifically constructed to provide investors in the China A-share market with a more sophisticated option to actively manage the sources of risks their portfolios are exposed to, said Olivier d’Assier, Asia Pacific Managing Director at Axioma. “The launch is a key milestone for China’s equity market, bringing the same best-practices solutions for risk management as are already available in many mature and developed equity markets.”

The indices will target both signal strength and investability via a two-step process aimed at capturing a strategy’s purified source of return, while ensuring that the resulting indices are replicable by investors.

“With the growing investor need for index-based investments, our collaboration with Axioma is optimized to track the performance of selected style factors in the China A-share market. This helps track factor-based returns and institutions like ETF providers can make use of the indices to construct new products that cater for investors’ specific needs in the China A-share market,” said Zhong Liu, Deputy General Manager of CSI.

The cooperation between Axioma and CSI started in March 2013. Axioma provides the advanced optimization technology to construct the indices which will be distributed by CSI and will target institutional investor community in China.