Sarasin & Partners LLP has joined forces with Solactive AG on Sarasin’s Systematic Efficient Approach (SSEA) Indices.
Solactive, a Germany-based index provider and Sarasin & Partners have partnered to unveil a suite of five new indices targeting smart beta equity exposure in the UK, Europe, the US, and globally.
The firms said they aim to provide a family of indices which aims to seek to outperform the market-cap over the medium-long term and across multiple market cycles, predominating for the private banking marketplace.
The thematic investment specialists said that its SSEA Indices are designed to provide core building blocks for asset allocators to achieve “core exposure, diversification and access” across risk premia: momentum, low volatility and size. The current range includes indices constructed to outperform the respective country benchmarks.
Andrea Nardon, Partner, Sarasin & Partners LLP, believes that the new indices offering will stand out in what he calls a recent “epic rise and wide range of alternative weighting and factor indices, AKA Smart Beta products”.
Pardon believes that this new methodology is positioned to “benefit from exposure to three proven risk premia whilst avoiding problems inherent to multi-factor optimisation”.
The SSEA Indices are calculated as total return. The SSEA index construction ranks stocks based on their efficiency profiles. Approximately 50% of the most efficient stocks in an investable universe are then selected and combined with a non-cap market weighting of constituents.
The indices are rebalanced at the beginning of each month.
Sarasin & Partners LLP is a London-based asset management group that specialises in thematic investment. It manages £13.4bn on behalf of charities, institutions, intermediaries, pension funds and private clients, from the UK and around the world.
The full range of newly launched indices include the: Sarasin Efficient flyer – UK Large Cap, Sarasin Efficient flyer – UK Mid Cap, Sarasin Efficient flyer – US, Sarasin Efficient flyer – Europe, Sarasin Efficient flyer – Global Equities.