Indexed management consists of reproducing the performance of a benchmark index that has an identical level of risk.

Investors know that they have optimum exposure to the market in which their assets are invested. Strict control of risks, maximum diversification and low portfolio management and dealing costs: these are the advantages of BCGE Asset Management indexed management mandates.

To achieve this, BCGE Asset Management uses an effective qualitative indexed management technique known as optimised sampling.

This method is based on a multi-factorial approach that analyses and breaks down the performance of each security in line with a certain number of economic variables – the factors – such as, for a bond market, movements of the yield curve, the rating or rate of exchange, or, for an equity market, interest rates, industrial growth and dividend rates.
The sensitivity of the securities to each of these factors is then measured and used to create a portfolio the statistical characteristics of which are as close as possible to those of the index. The advantage of this method is twofold. Firstly, it is possible to build a portfolio with a limited number of securities, chosen from among the most liquid and most attractive. Secondly, the manager can at any time control the risk of deviation, the tracking error, in relation to the benchmark index.