Dr. Djordje Zivkovic
Partner
Dr. Djordje Zivkovic
Partner
Dr. Djordje Zivkovic brings a robust background in strategy and finance, grounded in academic excellence and practical consulting experience. As a postdoctoral researcher at leading institutions such as the University of St. Gallen and the University of Liechtenstein, he applies analytical thinking and strategic foresight to the evolving intersection of strategy, innovation, and finance – among other areas, in the context of factor-based investing and modern asset management. His professional experience includes strategic consulting and financial advisory, where he leveraged financial analysis to support the development of data-informed strategies and decision-making approaches for corporate clients. He holds a doctorate (summa cum laude) in Business Economics and a Master of Arts in Accounting and Finance. Recognized for his academic achievements and data-driven approach, he has been awarded for outstanding research receiving the Best Dissertation Award from the Government of Liechtenstein and being selected to participate in the prestigious Lindau Nobel Laureate Meeting in Economic Sciences. As a passionate chess player and multiple-time Munich youth champion, he also enjoys football and tennis- balancing intellectual rigor with athletic discipline.
Companies with high productivity levels tend to combine strong profitability with superior operational efficiency, enabling them not only to remain resilient during economic slowdowns and cost pressures, but also to sustain long-term growth and value creation. The Solactive Averdas Productivity Leaders Index employs a transparent, rules-based, and scientifically validated approach to identify such firms and assemble them into a diversified, investable index that reflects the strength of productivity-driven performance, even in challenging macroeconomic regimes.
The Power of Productivity
Productivity gains importance in the 21st century, with the primary objective to promote economic growth and ensure the delivery of investor returns. The enhancement of productivity yields dual benefits from both a macroeconomic and an investor perspective. From a macroeconomic perspective, productivity facilitates a more targeted allocation of capital to companies with greater potential for productivity. From an investor’s perspective, firms’ productivity gains engender novel opportunities for identifying companies with above-average value creation and stable return potential. It has been demonstrated that companies with strong productivity (the Productivity Leaders) can achieve higher profits and more stable returns in the long term, even in challenging macroeconomic environments with falling growth and rising or falling inflation.
Sources of Productivity
Productivity is defined as the efficiency with which resources, including labor, capital, and other assets, are utilized to generate goods or services. A robust productivity position may emerge from various sources. The primary factors contributing to this growth include, amongst others, significant productivity gains achieved through research and development, advanced technologies, improved utilization of current assets, and disciplined control of operating expenses. Moreover, the optimization of processes empowers organizations to achieve elevated levels of output with a constant or diminished expenditure of resources by means of the streamlining of operations.
These efforts yield two primary benefits:
- Diversification and risk reduction
- Enhanced predictive strength and resilience.
Measuring Productivity
The application of advanced analytics (DEA) enables the calculation of a productivity frontier across a selected universe. For the Solactive Averdas Productivity Leaders US 1500 Index, a comprehensive analysis is conducted along the following three key dimensions:
- Asset Productivity: Asset Productivity serves as the foundation because it reflects the fundamental capacity of a company to generate output from limited resources. Its primary objective is to optimize the yield from labor, capital and technology, thereby ensuring sustained growth and augmented revenue. Main KPIs include R&D, Sales Growth or CapEx.
- Process Productivity: Process Productivity focuses on a firm’s ability to transform structural efficiency into sustainable profitability through effective optimized processes The goal is to achieve profitability through the implementation of dynamic and efficient operations. Main KPIs include are Current Assets, Operating Expense, COGS or Operating Income.
- Resilience: The objective of the Resilience measure is to assess an organization's capacity to adapt and recover from disruptions, thereby ensuring the stability of returns. From an investment perspective, Resilience acts as a stabilizing component within the productivity construct as it mitigates drawdowns, reduces earnings volatility, and enhances the persistence of returns over time. Main KPIs are Operating, Financing or Investing Cash Flows.
These dimensions capture distinct sources of return that extend beyond the well-established style and macro factors. They provide uncorrelated returns, not yet covered by any type of tradeable index.
Backtest Results
Index Methodology:
The index selects 30 components that excel across the three dimension of the productivity factor and at each yearly rebalance, the securities are equally weighted.
Starting from the Solactive GBS United States 1500 Index, securities are selected as follows:
- The top 40 companies demonstrating the highest levels of asset productivity are identified in the universe and considered eligible.
- Then, within the top 40 asset leaders, 5 companies are then selected based on superior process productivity.
- Lastly, 25 companies are selected for their exceptional resilience.
Sector Allocation:
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Disclaimer
Solactive AG does not offer any explicit or implicit guarantee or assurance either with regard to the results of using an Index and/or the concepts presented in this paper or in any other respect. There is no obligation for Solactive AG – irrespective of possible obligations to issuers – to advise third parties, including investors and/or financial intermediaries, of any errors in an Index. This publication by Solactive AG is no recommendation for capital investment and does not contain any assurance or opinion of Solactive AG regarding a possible investment in a financial instrument based on any Index or the Index concept contained herein. The information in this document does not constitute tax, legal or investment advice and is not intended as a recommendation for buying or selling securities. The information and opinions contained in this document have been obtained from public sources believed to be reliable, but no representation or warranty, express or implied, is made that such information is accurate or complete and it should not be relied upon as such. Solactive AG and all other companies mentioned in this document will not be responsible for the consequences of reliance upon any opinion or statement contained herein or for any omission.
