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THE H-FACTOR SYSTEM

The H-Factor System:

New Age Alpha’s portfolio tool for identifying and avoiding a hidden risk that can erode returns

Asset management innovator New Age Alpha has developed an actuarial-based approach to mitigate human behavior’s impact on stock prices. 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.

The BNP Paribas Global H-Factor Index employs the New Age Alpha H-Factor system for the selection of  the 225 global stocks that form the equity portion of the index.

WHAT IS THE H-FACTOR?

Human behavior is a risk that comes from humans interpreting vague or ambiguous information in a systematically incorrect way.

BEHIND THE H-FACTOR METHODOLOGY

Hypothetical depiction for illustrative purposes only.

For more information about New Age Alpha’s H-Factor
System methodology, please visit their website:
www.newagealpha.com

ABOUT NEW AGE ALPHA

New Age Alpha is a tech-driven asset management company that seeks to identify, measure and avoid companies whose securities are overpriced. The experienced team includes founders with successful 20-year partnership, investment and management team with 10 years’ experience working together and proven track record across asset classes and geographies. New Age Alpha provides ETFs, indexes, separately managed accounts, alternatives and custom portfolio solutions for global equities, fixed income and ESG.

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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