S&P launches alpha generation indices

Date: Wednesday, January 30, 2008
Author: Jonathan Stapleton, Professional Pensions

STANDARD & POOR’S has launched a range of indices focusing on alpha generation.

The S&P global dividend opportunities index and the S&P international dividend opportunities index are comprised of 100 tradable, exchange-listed common stocks from across the world that offers high dividend yields.

The international dividend opportunities index will exclude US domiciled securities.

Standard & Poor’s Index Services vice president Tim Eisenhauer said: “The launch of these two indices underscores Standard & Poor’s commitment to producing alpha generating strategy indices with a methodology designed to provide returns over and above traditional benchmark indices.

“In addition to providing investors with access to income producing securities, the indices will also offer provide a defensive play for those investors seeking cover during volatile market environments.”

The universe from which the S&P Dividend Opportunities Indices is drawn from is the S&P/Citigroup Broad Market Index, an index that includes all dividend paying common stocks and American Depositary Receipts listed on eligible exchanges around the world.

Derivatives, structured products, over-the-counter listings, mutual funds and exchange-traded funds are not eligible.