S&P release new index for private wealth investors

Private wealth investors may welcome the news Standards & Poor's has launched Factor Indices, which aim to measure the risk premium involved in asset classes and financial markets.

Individuals with private wealth and banking groups who invest on clients' behalf may wish to use the rating to track the spread between a long and short sub-index.

The series provides information on equity risk premiums, which measure the stretch of US stocks over the profits offered by long-term government bonds.

And private wealth investors in commodities could use the equity spread data on both gold and crude oil, which examines the return of gold over comparable earnings from US stocks.

Established more than 150 years ago, the group provides credit ratings and risk evaluations, as well as carrying out investment research.

Steve Goldin, vice-president of strategy indices at the company, commented: "The S&P Factor Index Series was built to provide investors with the ability to benchmark, or gain exposure to, a broad range of risk premium in the financial markets." ADNFCR-2318-ID-800022717-ADNFCR