S&P Launches New Series of Indices Combining Core S&P Asset Classes
NEW YORK, Feb. 11, 2011/PRNewswire/ — Standard & Poor’s, the world’s leading index provider, announced today that it has launched a new series of indices intended for investors with differing risk-reward profiles. The S&P Balanced Equity and Bond Indices combine investable S&P measures of the core asset classes of equity and fixed income, with US Treasury pricing provided exclusively by BGCantor Market Data, L.P., resulting in regularly rebalanced multi-asset indices.
The S&P Balanced Equity and Bond Indices are constructed with varying risk-reward profiles allowing investors a choice in the amount of risk embedded in the combined portfolio. Each index in the Series is allocated a pre-defined weight of equity exposure, as represented by the S&P 500 Total Return Index, and bond exposure, as represented by the S&P/BGCantor 7-10 Year U.S. Treasury Bond Index.
The indices currently included in the series are as follows:
- S&P Balanced Equity and Bond – Conservative Index. Long position in the S&P 500 Total Return Index (25% weight), and long position in the S&P/BGCantor 7-10 Year U.S. Treasury Bond Index (75% weight).
- S&P Balanced Equity and Bond – Moderate Index. Long position in the S&P 500 Total Return Index (50% weight), and long position in the S&P/BGCantor 7-10 Year U.S. Treasury Bond Index (50% weight).
- S&P Balanced Equity and Bond – Growth Index. Long position in the S&P 500 Total Return Index (75% weight), and long position in the S&P/BGCantor 7-10 Year U.S. Treasury Bond Index (25% weight).
“The diversification benefit of holding a portfolio of assets with low correlation is well documented,” says Michael Kondas, Associate Director of Fixed Income Indices at S&P Indices. “The launch of these new indices allows investors to potentially take advantage of the historically slight correlation in the returns of U.S. equities and U.S. Treasuries.”
All of the indices included in the S&P Balanced Equity and Bond Index Series are rebalanced quarterly. On the last trading day of February, May, August, and November, the weights of bond and equity exposure are returned to the pre-defined levels for each index in the series.
For more information, please visit: www.standardandpoors.com/indices.
About S&P Indices
S&P Indices, the world’s leading index provider, maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1.25 trillion is directly indexed to Standard & Poor’s family of indices, which includes the S&P 500, the world’s most followed stock market index, the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, the S&P Global BMI, an index with approximately 11,000 constituents, the S&P GSCI, the industry’s most closely watched commodities index, and the S&P National AMT-Free Municipal Bond Index, the premier investable index for U.S. municipal bonds. For more information, please visit www.standardandpoors.com/indices.
Standard & Poor’s does not sponsor, endorse, sell or promote any S&P index-based investment product. This document does not constitute an offer of services in jurisdictions where Standard & Poor’s or its affiliates do not have the necessary licenses. Standard & Poor’s receives compensation in connection with licensing its indices to third parties.
About BGCantor Market Data
BGCantor Market Data, L.P., a subsidiary of BGC Partners, Inc. is one of the world’s premier suppliers of real-time, tradeable, indicative, end-of-day, and historical fixed income and derivatives data. As the exclusive source for market data derived from BGC Partners’ voice and electronic broking activities. BGCantor Market Data’s products and services are used by finance professionals for price discovery, analysis, risk management, portfolio monitoring and valuation, and research. BGCantor Market Data’s product suite spans fixed income, interest rates, foreign exchange, foreign exchange options, credit derivatives, structures products, and analytics. BGCantor Market Data’s products are available via direct data feed and the internet, and through vendors such as Bloomberg, Thomson Reuters, CQG, DTN, eSignal, and SunGard.
For more information about BGCantor Market Data please visit: http://www.bgcantor.com
For more information on the S&P/BGCantor U.S. Treasury Bill Index and the S&P/BG Cantor U.S. Treasury Bond Index, please visit www.fixedincomeindices.standardandpoors.com.
SOURCE Standard & Poor’s