The Credit Suisse Family Index (CSFAM) tracks the performance of 40 key stocks with significant family influence worldwide.
The stocks included in the index are selected on a biannual basis based on the HOLT model developed by Credit Suisse.
A company is considered to be subject to significant family influence if members of one family holds a large share of ownership or voting rights in the company. This type of company is often referred to as a family business or family-owned company, but it is not a true family business because its stock is not fully owned by one family.
Companies which are owned by multiple shareholders with differing interests and the ownership of which is in constant flux often show high levels of volatility. Companies with significant family influence, on the other hand, often show stability and steady growth over long periods of time because decisions rest in the hands of a single family. These features make this type of company attractive to many investors who buy and hold shares for dividends and long-term capital gains.
The CSFAM provides these investors with a basis for tracking stocks with significant family influence (SSFI).
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