A method of asset management which seeks to achieve performance which replicates that of an index selected in advance to represent the desired market.
Indices are a measure of the performance of a market. CAC40: launched on 1 January 1988 (base 1000), it is represented by the weighted average price of a sample of the 40 largest listed companies by market capitalisation. It is one of the benchmark indices of the Paris Bourse and serves as a support for the exchange-traded options market as well as for a stock index futures market. SBF 120: launched on 8 December 1993, composed of the 40 stocks from the CAC40 to which are added 80 of the most liquid stocks from the Main Market. SBF 250: includes the stocks from the CAC40 and SBF 120 indices and is representative of all sectors on the exchange. MIDCAC: completes the list of indices; it is composed of a sample of 100 average French stocks listed on the Paris Bourse.
An inflation-linked bond is a bond for which, each year, the coupon and the redemption price are revaluated on the basis of the rise in the retail price index since the debt was issued. The investor is thus protected against inflation.
“Quality” public and private issuers with a rating higher than BBB- on the Standard & Poors scale.