PRESS RELEASE Stockholm May 17th 2021
Fintech-company CIMalgo AB launches a sustainable low-volatility index.
CIMalgo launches the index “Solactive CIMalgo Sustainable Equity Selection INDEX” whose purpose is to add two dimensions of sustainability to equity investing. One follows from the strictest criteria for normative exclusion of companies; the other uses sophisticated, forward-looking volatility control and optimization functionality to mitigate the risk of drawdowns.
The purpose of the index is to offer a low-volatility global equity exposure based on the world’s two thousand largest corporations as a starting universe. With semiannual rebalancing, through an intuitive and risk-driven quantitative process, the index selects one hundred companies that are optimized for minimum variance and equally weighted in the portfolio.
The index concept has been developed by CIMalgo enables a global equity exposure with 2/3 of the market volatility and approximately 40% of the market beta. In a broad portfolio of risky assets that risk-managed, an investor can thus hold a larger proportion of shares without having to diversify away from the attractive long-term premium that the stock market offers over time.
In a world where sustainable investments are the norm, the index’s starting universe is also subject to a strict, sector-based exclusion matrix with zero tolerance for companies’ revenues from the normative criteria defined in the ESG methodology.
The index is administered and calculated by Solactive AG in Frankfurt. Solactive is one of the world’s largest index providers, which with its infrastructure enables the index to maintain the highest standard for calculation and administration of the index. The index’s ISIN is DE000SL0CXS4 and its BBG ticker SOCIMESG Index. The index is subject to the EU Benchmark Regulations.
For more information please contact:
André L. Havas, CEO firstname.lastname@example.org (+46) 722-43 10 13
CIMalgo AB is a Fin Tech Research & Development company for the asset management industry, founded in 2011. CIMalgo provides quantitative equity management solutions, customized portfolio models and global stock analysis, as a provider of financial technology and information services to professional clients.