NEW YORK, July 23, 2012 /PRNewswire/ -- S&P Dow Jones Indices announced today the launch of the S&P GIVI™ China A-Share, the first index of its kind in the Chinese market to combine low volatility and an alternative weighting scheme that weights a stock by its calculated intrinsic value, rather than market-capitalization.
The S&P GIVI China A-Share index uses the methodology of the base S&P GIVI ("S&P Global Intrinsic Value Index") which has been licensed by S&P Dow Jones Indices to Goldman Sachs Asset Management (GSAM).
Alexander Matturri, Chief Executive Officer of S&P Dow Jones Indices, said: "With the China Securities Regulatory Commission expanding quotas for foreign investment, investors will have greater opportunities to gain exposure to the China A-shares market which features some of the fastest growing companies in the world. The S&P GIVI China A-Share index presents a unique opportunity for investors to access and measure this important segment of the Chinese market. While we believe that market-capitalization indices will continue to play a critical and growing role in measuring markets worldwide, innovative concepts such as our GIVI indices, that combine different approaches to weighting securities within an index, will present an alternative approach for investors looking to diversify their portfolio beyond traditional market-cap weighting schemes."
Jim O'Neill, Chairman of Goldman Sachs Asset Management, said: "Prompted by the global financial crisis, investors are seriously questioning their investment philosophy and considering new approaches to asset allocation. As China looks set to become the world's biggest economy within the next 15 years, the S&P GIVI China A-Share index is, in my view, one of the most relevant benchmarks for investors to access China's economic activities and growth opportunities."The S&P GIVI China A-Share index seeks to provide investors better risk adjusted exposure to the China A-Share market. Using the standard GIVI methodology, this Index combines two investment ideas – low volatility and intrinsic value weighting. The low volatility and value anomalies have been established both empirically and in academia and have gained prominence after the financial crisis as investors have sought equity exposure but at a lower level of risk. The S&P GIVI China A-Share index, through its unique methodology which combines these two factors, seeks to provide investors with higher risk adjusted returns compared to the benchmark, the S&P CITIC All Cap Index while maintaining a modest tracking error.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV