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Why we gave this rating

Silver indices are determined to be in the medium tier, scoring positively in most categories judged to be critical by The Index Standard. Institutional Shareholder Services are well-known for their insights in this field as they advise on voting and board governance, so this is a good use of their data. Free cash flow is a proven factor and low volatility has academic backing, making the equity construction solid in our view. The MVO-like process aims to maximize returns for a given level of portfolio volatility, using past 1-year returns as a guide. Using MVO for the asset allocation is appropriate as this is a widely used methodology with generally good results. There is a reasonably broad range of different asset classes for the index to allocate across. The performance of the long/short commodity overlay can be inconsistent, but the allocation has historically been small. The fee is in line with other similar indices.

BNP Paribas US Governance Multi Asset Index

Inception Date: 25 May 2022

Sponsor

BNP Paribas

Fee

50 bps

  • Ticker

    BNPIUGMA

  • Index Type

    Excess Return

  • Index Bloomberg Ticker

    BNPIUGMA Index

  • Style Information

    ESG

  • Weighting Scheme

    Volatility Control

  • Asset Class

    Multi Asset/Rates

  • Replication Process

    Derivative

  • Underlying Region

    Global

  • Region Distributed

    United States

The information pertains exclusively to the index described. It does not address the historical performance or forecast or a product or products that use the index and it does not consider any floors, caps, participation rates or fees.

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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE.

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