The indices will be calculated and disseminated in real time as of 24 September
BME has created a new family of 8 target volatility indices, expanding the IBEX35® index series. The new IBEX 35® VOLATILIDAD OBJETIVO (IBEX 35 ® Target Volatility) indices will be calculated and disseminated, in real time, as of 24 September.
The aim of these indices is to keep the risk of IBEX 35® index within preset levels. The strategy combines investments in Equities with risk-free Fixed Income, varying the proportion invested in each type of asset depending on market volatility.
To this end, four volatility targets have been created (10%, 12%, 15% and 18%) as well as two series of indices for each target volatility level (standard and financed).
On one hand, the Standard series of Target Volatility indices invest efficiently the available capital in both Equities and Fixed Income assets in order to maintain the target volatility level considered; on the other hand, the Financed series of Target Volatility indices invest only in Equities, offering a return net of interest rates.
The IBEX 35® Target Volatility series are divided in eight specific indices:
IBEX 35® TARGET VOLATILITY 10% STANDARD,
IBEX 35® TARGET VOLATILITY 12% STANDARD,
IBEX 35® TARGET VOLATILITY 15% STANDARD,
IBEX 35® TARGET VOLATILITY 18% STANDARD,
IBEX 35® TARGET VOLATILITY 10% FINANCED,
IBEX 35® TARGET VOLATILITY 12% FINANCED,
IBEX 35® TARGET VOLATILITY 15% FINANCED and
IBEX 35® TARGET VOLATILITY 18% FINANCED
The calculation of the new indices will be carried out in accordance with the Technical Regulations for the Composition and Calculation of the IBEX 35® indices.