Performance & Volatility
Last valuation date : 24-02-2021
Risk / Return from04-03-1999
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.
NXS Optimum Asia Index is a dynamic strategy index exposed to financial markets via a basket composed of liquid Asian stocks weighted in order to minimise the portfolio variance and depending on a volatility control mechanism.
The aim of the index is to allow investors to capture the potential of unlimited upside return of an Asian stock basket with an optimised risk level.
NXS Optimum Asia Index follows a strategy of dynamic rebalancing.
Selected from a group of Asia-Pacific countries indices (Singapore, Taiwan, Japan, South Korea , Hong Kong, Australia), the stocks composing NXS Optimum Asia index are filtered according to liquidity and capitalisation criteria.
Stock weights are determined according to a risk management model that reduces overall portfolio variance. Country exposure cannot exceed 40% and the weight of each stock cannot exceed 10%. The composition of the index is reviewed annually. The volatility of the index is capped at 10%.
In an uncertain economic context, the challenge for an investor is to be able to take advantage of the opportunities for growth in Asian markets while controlling any declines.
Thanks to a stock screening methodology and a risk management mechanism, investors benefit from both a better calibration of their risk return and a greater security of their investment.