BBGI OPP2 Compliant Indices

The only OPP2/BVV2 compliant LPP indices since 1984

Since OPP2 came into force in 1985, there have been no fewer than eight amendments, to the wealth investment rules for pensions funds, some more important than others.

As such, almost every three or four years, new investment limits have been adopted, changing the legal framework in force each time.

BBGI OPP2 Compliant Indices

The BBGI OPP2 Compliant indices are the only diversified indices compliant with OPP2 rules since 1984 in terms of authorized investment sphere and fixed investment limits. They perfectly meet the Pensions Funds requirement of having complete performance comparison indices which are always compliant with current legislation, allowing them to measure the effectiveness of their global strategy.

As such, the make-up of our BBGI OPP2 Compliant indices has been altered at each significant stage in the OPP2’s development – 1985, 1989, 1991, 2000 & 2009. Consequently, the indices always comply with the investment limits in force, as set by OPP2.

+5.80% annualized performance

BBGI OPP2 Compliant

Publication
January 2021

The systematic diversified strategies of the BBGI OPP2 COMPLIANT Indices have produced returns of +5.29% to +5.80% annualized since 1984 to date.

Slightly negative start to the year for most asset classes

After a positive month of December, the BBGI OPP2 Compliant indices start the year 2021 in slightly negative territory. Indeed, the low-risk index achieves a performance of -0.77%, the moderate-risk index falls by -0.72% and the dynamic-risk index loses -0.67% in January. The bond markets are in the red this month. The Swiss market falls below the zero return bar (-0.35%) after having moved horizontally for two months.

The international segment also moved into negative territory for the second consecutive month. The real estate market experienced a correction in January, with the domestic segment recording the worst performance of all asset classes (-3.45%), while the decline in the international segment was less pronounced (-0.51%). The equity market performance was flat on both sides of the zero return after a year-end marked by a meteoric rise. The international segment continues its upward trend and gains […]

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Our family of BBGI OPP2 Compliant Indices offers three different approaches to risk, characterized by optimal, non-biased, effective diversification, true to the fundamental principal of independence.

BBGI OPP2 Compliant "Medium risk"

The principles of fidelity, independence and neutrality first of all led us to set out a first index characterized by specific, neutral asset allocations, close to the center-point of the authorized limit set out in OPP2.

The BBGI OPP2 Compliant “medium” Index therefore contains around 27.5% equities (min 0%, max 50%), 20% real estate (min 0%, max 30%), 7.5% alternative investments (min 0%, max 15%). The other two BBGI OPP2 Compliant Indices, the “low” and the “dynamic” are based around the same principle.

Composition

BBGI OPP2 Compliant "Low risk"

Specific, neutral asset allocations are positioned close to the center-point of the fluctuation band, which is set between the OPP2 minimum points and the neutral points of BBGI OPP2 Compliant “medium” index.

BBGI OPP2 Compliant "Dynamic risk"

Specific, neutral asset allocations are positioned close to the center-point of the fluctuation band, which is set between the OPP2 maximum points and the neutral points of BBGI OPP2 Compliant “medium” index.

Our three BBGI OPP2 Compliant indices were calculated on a monthly basis from January 1st, 1985, and have been calculated on a daily basis since 1st January 2009. They are readjusted on a monthly basis, which means that daily performance comes from a buy-and-hold type approach implemented throughout the month. The weightings of asset classes that form part of our indices therefore change throughout the month depending on the absolute and relative performances of each index, before being repositioned or readjusted at the end of each month based on the neutral allocations of each of the three BBGI OPP2 Compliant Indices.

All of the indices selected to represent the progression of an asset category are total return indices, calculated and published on a daily basis.

All of our indices were based at 100 on 31/12/1984.

Index Methodology

31.12.1984 - 31.01.2021 Performance

Total return, in%

Annualized return, in %

Bloomberg

BBGIOPPL : BBGI OPP2 Compliant “Low risk” Index

BGIOPPM: BBGI OPP2 Compliant “Medium risk” Index

BBGIOPPD : BBGI OPP2 Compliant “Dynamic risk” Index

More information is available on the French website