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INTRODUCING THE

BNP PARIBAS GLOBAL H-FACTOR INDEX

BNP Paribas has collaborated with New Age Alpha, an asset management innovator which utilizes an actuarial-based approach to mitigate human behavior’s impact on stock price, to introduce the BNP Paribas Global H-Factor Index (“BNPP Global H-Factor Index”).

This rules-based index aims to provide a balance between growth potential and asset protection by seeking to systematically avoid human behavior risk, or the H-Factor. New Age Alpha’s H-Factor methodology drives stock selection, using technology, actuarial science and 20 years’ research to score and seek avoidance of human behavior risk that it believes causes stocks to be mispriced.

225 global stocks with the lowest Human Factor scores form the New Age Alpha Global Leading Index, the equity portion of the BNPP  Global H-Factor index. In addition to equities, the BNPP Global H-Factor Index also utilizes exposure to US Treasury futures for  diversification. On a daily basis, the Index methodology adjusts exposure among the stocks, Treasury futures, and a hypothetical cash position to maintain the index’s annualized volatility of 5%.

For a list of selected risk and considerations with the BNPP Global H-Factor Index, please click here

BNP PARIBAS GLOBAL H-FACTOR INDEX:

A PROBABILITY-BASED APPROACH

Click on the video to learn more about the BNP Paribas Global H-Factor Index

THE BNP PARIBAS GLOBAL H-FACTOR INDEX INCLUDES

Each quarter, the index goes through a 3 step process to identify and refine its allocation of global stocks from a broad universe

EACH QUARTER:

For illustrative purposes only.

1U.S. stocks must have a minimum of $5 million 6- month average daily trading value and at least a $3 stock price to be eligible. Non-U.S. stocks must have a minimum $1 million 6-month average daily trading value and a minimum market-cap of $100 million.

250 from the U.S, 75 from Europe, 50 from UK, 50 from Japan.

In an effort to hedge the portfolio in changing market conditions, a risk control mechanism is employed.

On a daily basis, the BNPP Global H-Factor Index adjusts its exposure among the stocks, Treasury futures, and a hypothetical cash position to target an annualized realized volatility of 5%.

to learn more about H-Factor methodology

DOWNLOAD MATERIAL

BROCHURE

An 8 page overview of the Index complete with performance information and definitions of key terms. Updated quarterly.

FACTSHEET

A more concise overview of the Index, complete with latest performance information. Updated quarterly.

ABOUT BNP PARIBAS

Click here to learn more about the Index’s sponsor.

Want to know more about the
BNP Paribas Global H-Factor Index?

global.hfactor.index@us.bnpparibas.com

© BNP Paribas. All rights reserved.

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Important Information

 

The BNP Paribas Global H-Factor Index (the “BNP Paribas Global H-Factor Index”) is the exclusive property of BNP Paribas or one of its affiliates (BNP Paribas and its affiliates are hereinafter called “BNPP”) and is determined, composed and calculated by BNPP. “BNP”, “BNPP”, “BNP Paribas”, “BNP Paribas Global H-Factor Index”, and “BNPP Global H-Factor Index” (collectively, the “BNPP Marks”) are trademarks or service marks of BNPP.
In calculating the performance of the BNP Paribas Global H-Factor Index, BNPP deducts an annual fee of 0.50% per annum, calculated on a daily basis which reduces the performance of the index in the same way as a cost. In addition, the BNP Paribas Global H-Factor Index methodology embeds certain costs which cover among other things, rebalancing and replication costs. Such costs (if any) may vary over time with market conditions.
BNPP may license the BNP Paribas Global H-Factor Index to one or more companies (each, a “Company”) for use in a product offered or issued by the Company. The products are not, in whole or in part, sponsored, structured, priced, endorsed, offered, sold, issued or promoted by BNPP or any of its affiliates, or any third party licensor of information to BNPP. BNPP reserves the right to amend or adjust the BNP Paribas Global H-Factor Index methodology from time to time and accepts no liability for any such amendment or adjustment. BNPP is not under any obligation to continue the calculation, publication or dissemination of the BNP Paribas Global H-Factor Index and accepts no liability for any suspension or interruption in the calculation thereof. Neither BNPP nor any of its affiliates accepts any liability in connection with the publication or use of the level of the BNP Paribas Global H-Factor Index at any given time.
BNPP may enter into derivative transactions or issue financial instruments (the “Index Products”) linked to the BNP Paribas Global H-Factor Index. The BNP Paribas Global H-Factor Index Products are not in any way sponsored, endorsed, sold or promoted by the sponsor of any index component (or part thereof) which may comprise the BNP Paribas Global H-Factor Index (the “Underlying Index”) that is not affiliated with BNPP (each such sponsor, an “Underlying Index Sponsor”). The Underlying Index Sponsors make no representation whatsoever, whether express or implied, either as to the results to be obtained from the use of the relevant Underlying Index and/or the levels at which the relevant Underlying Index stands at any particular time on any particular date or otherwise. No Underlying Index Sponsor shall be liable (whether in negligence or otherwise) to any person for any error in the relevant Underlying Index and the relevant Underlying Index Sponsor is under no obligation to advise any person of any error therein. None of the Underlying Index Sponsors makes any representation whatsoever, whether express or implied, as to the advisability of purchasing or investing in, or assuming any risk in connection with, the BNP Paribas Global H-Factor Index Products. BNPP shall have no liability to any party for any act or failure to act by any Underlying Index Sponsor in connection with the calculation, adjustment or maintenance of the relevant Underlying Index and have no affiliation with or control over any Underlying Index or the relevant Underlying Index Sponsor or the computation, composition or dissemination of any Underlying Index. Although BNPP will obtain information concerning each Underlying Index from publicly available sources that it believes reliable, it will not independently verify this information. Accordingly, no representation, warranty or undertaking (express or implied) is made and no responsibility is accepted by BNPP as to the accuracy, completeness and timeliness of information concerning any Underlying Index.
BNPP may act in a number of different capacities in relation to the BNP Paribas Global H-Factor Index and/or products linked to the BNP Paribas Global H-Factor Index, which may include, but not be limited to, acting as hedging counterparty, index sponsor and/or index calculation agent.

© BNP Paribas. All rights reserved.

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