SOURCE: Russell Investments

Russell Investments

August 14, 2015 09:13 ET

Seeking Yield...Globally: FTSE Sustainable Yield Index Series Measures Sustainable, Dependable Yield of Companies Around the World

SEATTLE, WA--(Marketwired - Aug 14, 2015) -  In the current market environment, income seeking investors are increasingly focused on attempting to track the performance of "high yield" equity strategies, but face challenges finding a benchmark that accurately reflects a long-term sustainable approach.

Measurement of global high yield equity strategies can be clouded by returns driven by distress more than sustainability or by financial leverage rather than operating capability. Furthermore, high yield measures may be impacted by industry or country biases which can create high turnover. If screening for yield alone, an index may reflect less actual yield than originally intended.

The FTSE Sustainable Yield Index Series is designed to measure the performance of companies screened for their ability to provide sustainable, dependable long-term yield. The indexes screen for companies around the world with a sustainable yield, no past or forecast dividend cuts, a sustainable payout ratio and strong financial and operating characteristics.

Vera Cady, FTSE Russell Research Analyst, said:
"Analysis of the FTSE Sustainable Yield Index Series hypothetical historical index returns highlights that the indexes have recorded high yield, high absolute and risk adjusted returns and low tracking error relative to their market cap weighted benchmarks." 

Further details around the FTSE Sustainable Yield Index Series methodology and a supporting factsheet can be found at http://www.ftse.com/products/indices/sustainable-yield.

About FTSE Russell:
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 80 countries, covering 98% of the investable market globally.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Leading asset owners, asset managers, ETF providers and investment banks use FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance. FTSE Russell is also focused on index innovation and client collaboration as it seeks to enhance the breadth, depth and reach of its offering.

FTSE Russell is wholly owned by London Stock Exchange Group. For more information, visit www.ftserussell.com.

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London Stock Exchange Group companies includes FTSE International Limited ("FTSE"), Frank Russell Company ("Russell"), MTS Next Limited ("MTS"), and FTSE TMX Global Debt Capital Markets Inc ("FTSE TMX"). All rights reserved.

Views expressed by Vera Cady are as of August 13, 2015 and subject to change. In addition, views expressed by Vera Cady do not necessarily reflect the views of FTSE Russell or the London Stock Exchange Group.

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