PRESS CONTACT:
Cognito on behalf of Sabrient
Caitlin Mitchell
+1 646.395.6300
sabrient@cognitomedia.com
Thomson Reuters
Lemuel Brewster
PR Director, Investors
+1 646-223-5147
Lemuel.brewster@thomsonreuters.com
Thomson Reuters and Sabrient Launch Low Volatility Indices for ETF Distributors
Indices supported by a 10-year track record of outperforming the market
Santa Barbara, Calif. – June 27, 2012 – Sabrient Systems, LLC, an independent equity research firm that specializes in alpha extraction through quantitative and qualitative analysis, announced today that it has collaborated with Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals, to provide two alpha generating, low volatility indices for license by ETF distributors, mutual funds, and asset managers; the Thomson Reuters/Sabrient Sensible Growth Low Volatility Index and the Thomson Reuters/Sabrient Sensible Growth Index.
The indices’ proprietary formula for distinguishing between undervalued and overvalued companies based on short and longer-term growth metrics differentiate these indices from others in the market.
They combine Sabrient’s fundamentally-based approach of picking growth and value stocks with Thomson Reuters’ experience of calculating real time indices which are tracked by investment vehicles.
The TR/S Sensible Growth Low Volatility Index is a Long/Short index and the TR/S Sensible Growth Index is a Long index; both indices have a validated 10-year historical performance backtest.
“Our collaborative agreement allows our clients to leverage Sabrient’s specialized intellectual property and, with these new products, to continue to generate alpha despite today’s tough market conditions,” said Steven Carroll, Head of Thomson Reuters Indices.
“Working with such a well-respected firm provides our clients with third party validation and branding through Thomson Reuters’ independently backtested results,” said Scott Brown, President of Sabrient. “We perceived an increased need for low-volatility products in the market and wanted to provide ETF distributors and fund managers with alternative indices that leverage a unique methodology applied across large quantities of data, to generate robust risk-adjusted returns.”
The Thomson Reuters/Sabrient Indices employ several quantitative factors, including quality of earnings to rank all U.S. listed stocks by current and prospective growth and valuation. The top 100 of these stocks are equally weighted to form the TR/S Sensible Growth Index whilst the top 50 and bottom 50 are equally weighted to form the TR/S Sensible Growth Low Volatility Index. Index constituents must be covered by at least 3 analysts and have a market capitalization of at least $150 million in order to be included in the index.
# # #
Notes to Editors
ABOUT SABRIENT SYSTEMS, LLC
-----------------------------------------------------
Sabrient Systems, LLC specializes in unbiased, fundamentals-based quantitative equity research for the benefit of investment professionals, hedge funds, and self-directed investors. The firm analyzes nearly 6,000 U.S. and 2000 Canadian traded stocks and identifies those that appear poised to out-perform or under-perform the market. Sabrient first published its rankings in 2002, and its models have consistently outperformed relevant benchmarks over a broad range of investing styles, market caps, time frames and market conditions. Its long/short strategies have produced 10-year annualized returns ranging from 21% to 47%. Sabrient is based in Santa Barbara, California. Visit www.sabrient.com.
ABOUT THOMSON REUTERS
------------------------------------------
Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs approximately 60,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges. For more information, go to thomsonreuters.com.