Performance & Volatility
Last valuation date : 29-10-2020
Risk / Return from05-08-2013
All information for an index prior to its Inception Date is back-tested, based on the methodology that was in effect on the Inception Date. Back-tested performance, which is hypothetical and not actual performance, is subject to inherent limitations because it reflects application of an Index methodology and selection of index constituents in hindsight. No theoretical approach can take into account all of the factors in the markets in general and the impact of decisions that might have been made during the actual operation of an index. Actual returns may differ from, and be lower than, back-tested returns.
The key elements of the index methodology are available upon demand.
The Pacific Excellence Index is an innovative strategy index developed by Natixis, calculated and published by an independent calculation agent: Thomson Reuters.
The weights are determined by Natixis as the Index Sponsor (who is also the issuer of the Bonds) and transmitted daily to the Calculation Agent.
The Excellence Pacific Index is based on a flexible allocation method for “portfolio insurance” and also on the use of an “Advanced Risk Perception Indicator” with an international dimension.
The so-called “portfolio insurance” method consists in regularly adjusting the distribution between a “risky” portfolio of assets (the Pacific Excellence Selection) and a non-risky assets pocket (correlated with a monetary return) and allows a full guarantee of the capital at maturity (excluding fees, excluding taxation of the investment framework and the default of the issuer):
– in the event of a rise in the Pacific Excellence Selection, the exposure of the index to these risky assets will be increased in order to benefit at best, although partially, from the growth of the equity markets,
– in the event of a decline in the Pacific Excellence Selection, the exposure of the index to these risky assets will be reduced in order to protect the portfolio against a further decline in the equity markets.
The Advanced Risk Perception Indicator, designed by Natixis, the Index’s sponsor, detects sudden changes in the financial markets.
It is constructed from objective market parameters, commonly used by market participants, and determines the risk perception levels of financial markets.
Using this indicator, and based on the estimated level of risk, the index:
– adopts a defensive approach by reducing the allocation dedicated to the Pacific Excellence Selection, in favor of the non-risky assets pocket during high-risk collection periods,
– increases the weight of the risky assets portfolio, the Pacific Excellence Selection, in the period of perception of a so-called low risk trend.