Socit Gnrale Asset Management Alternative Investments (SGAM AI) has launched the SGAM ETF Private Equity LPX50, which is the first ETF to replicate the private equity LPX 50 Total Return index.
Listed private equity brings together companies and funds whose main business is to invest in private equity and which are listed on stock markets. They use funds raised on the stock market to take direct equity stakes in unlisted companies or in private equity funds.
The LPX 50 Total Return Index aims to offer fast access to the 50 largest listed stock companies who specialise in the allocation of private equity capital.
Companies and funds make up the universe of the LPX50 Index and their principal activity must focus on the provision of Private Equity. To be included in the Index, companies must have at least 50 percent of their total assets invested directly or indirectly in the Private Equity sector.
The Index represents 70 percent of the sector’s global market capitalisation. The LPX50 Total Return covers firms and funds selected not only for their size but also for their liquidity.
The LPX50 Total Return Index is calculated on a reinvested dividends basis; dividends paid out by the underlying firms are integrated in the Index price and taken into account in calculating overall Index performance.