Solactive has launched the Solactive Global Family Owned Companies Index, which focuses on the positive effects of certain ownership structures on the long-term development of a company.
The index displays the performance of those companies that are in large part owned by families. This index is used as an underlying for open end certificates of the UBS, which will be listed at the Swiss stock exchange for structured products 'SIX structured product exchange' in CHF, EUR and USD. Barclays also plans to use the index in products, mainly in France, in EUR and USD.
Family owned companies are globally in vogue, they are regarded as exceptionally sustainable success story. Studies* show that family owned companies are able to plan and act sustainably as they are engaged in the company in a long-term manner. Their experiences and traditions that often reach back several decades can support their decisions in the long-term as well as in the short-term. Additionally, they also continuously invest higher amounts in e.g. research than other companies, which positively influence their profitability as well as sustainable success. This approach is clearly seen in the stock performance – family owned companies could beat their peer group over the last ten years with a good outperformance and a significantly better yield/risk ratio.
Steffen Scheuble (pictured), CEO, Solactive, says: “By launching the Solactive Global Family Owned Companies Index we introduced another index that is focused on the long-term development of a company. Investors can now participate in the positive influence of family ownership and follow a sustainable and attractive yield/risk ratio.”
Robin Lemann, Head UBS Public Distribution Switzerland, said: “Tracker certificates on the Global Family Owned Companies Index open another niche market to the investors. That way they can participate in the development of global family owned firms with just one product. Thanks to its dynamic index methodology it is assured that the index is regularly adjusted to the newest market environment.”
Thibault Scaramanga, Head of Barclays EFS Solutions France, Barclays, says: “For most of us, family controlled companies are intuitively synonymous with fundamental wealth creation based on long term management, strong value foundations and capital preservation. The Solactive Global Family Owned Companies Index offers simple access to family firms on a worldwide and diversified basis. Although the index construction is simple, in historical simulations the index substantially outperformed its benchmark over the last 10 years while showing a lower volatility. This is perhaps not a surprise when considering the abundant literature on the value of family controlled companies.”