Solactive Value Investoren Index

On the track of renowned investors

 

Open End PERLES on the Solactive Value Investoren Total Return Index

I. In good company

With the Solactive Value Investoren Total Return Index, you can draw on the investment skills of investors who have a successful stock trading history going back decades. The index currently comprises 14 associated companies of selected large investors, all of which pursue a value investing style. The list includes Warren Buffett: With his investment company Berkshire Hathaway, the "oracle of Omaha" is arguably one of the most famous value investors. Yet, he is by no means the only advocate of this investment paradigm. For example, Albert Frère with his associated company Groupe Bruxelles Lambert (GBL) is regarded as Belgium's financial magician. With his two holding companies Hutchison Whampoa and Cheung Kong, Li Ka-Shing controls a material portion of the enterprises traded at the Hong Kong stock exchange. Moreover, the globally active fund manager Invesco mainly pursues a value-oriented investment strategy.

II. Undervalued quality equities

The value and the price are the two variables that value investors are especially interested in. Their objective is to find enterprises that cost less than they are actually worth. While the current price of an equity is evident on a daily basis, the art of value investing consists of ascertaining the actual value of an enterprise. The traditional approach, which was established by Benjamin Graham with the book "The Intelligent Investor" in 1949, concentrates primarily on the book value of a company. In addition to an attractive valuation, many successful investors also pay attention to quality criteria, e.g. factors that concern the business model, the management and the competitive position.

III. Long-term investment horizon

Apart from the search for supposedly undervalued equities, value investors are characterized by their consistently long-term investment behavior. For example, Warren Buffett believes that an investment that you are not willing to hold for five years is not worth owning for five minutes.

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