Deutsche Börse Launches new Country and Strategy Indices
DAXglobal Latin America tracks companies from Latin American countries/ DAXglobal GCC Index enables investments in Middle Eastern markets/ New DAXplus indices on European Directors’ Dealings transactions
Deutsche Börse has added more new members to its DAXglobal® and DAXplus® index families. Investors can now participate in the growth of the Latin American economy with the DAXglobal Latin America Index. The DAXglobal GCC (Gulf Cooperation Council) Index tracks the performance of Gulf States. The new DAXplus Directors’ Dealings indices track the performance of companies at which employees subject to reporting requirements have bought a particularly high volume of shares in the company over the past twelve months.
The DAXglobal Latin America Index tracks the 40 most liquid companies from Argentina, Brazil, Chile, Columbia, Mexico and Peru in a transparent manner. The Latin America Index currently comprises American Depository Receipts (ADRs) on public limited companies in Latin America that are traded on various stock exchanges across the globe. ADRs are a popular vehicle used by companies in emerging markets to gain entry to the developed capital markets in Europe and the USA. This concept has already been successfully applied to other indices in the DAXglobal family in order to ensure improved tradability.
Another new addition to the international index family is the DAXglobal GCC Index. This index contains the 40 most liquid companies from five out of six of the states in the Cooperation Council for the Arab States of the Gulf. These include the United Arab Emirates (which accounts for 35.0 percent of the index), Kuwait (33.8 percent), Qatar (14.1 percent), Oman (11.8 percent) and Bahrain (5.3 percent). In order to assure a balanced weighting of these countries, the maximum weighting per country in the index has been set at 35 percent.
The selection criterion for the DAXglobal Latin America Index and the DAXglobal GCC Index is an average daily exchange turnover for the last six months of US$1 million. The weighting that the individual countries are awarded in the indices is based on the respective gross domestic product, and each company’s weighting in the index is capped at eight percent.
With the launch of the DAXplus European Directors’ Dealings indices Deutsche Börse has added another three innovative indices to its strategy index family. Each of the indices tracks 30 companies from Germany, Switzerland and the UK at which employees subject to reporting requirements have bought a particularly high volume of shares in the company over the past twelve months. These insider transactions are weighted based on how recent they are. Admission to the index also requires a minimum liquidity of US$1 million in daily exchange turnover. Back-calculations have revealed that an investment based on the Directors’ Dealing approach has considerably outperformed established benchmarks in rising markets.
The European Directors’ Dealings Indices are based on the data service of the same name, European Directors’ Dealings (EDD), which has been offered by Market Data & Analytics since September 2008. Transactions in a stock corporation’s shares conducted by its executive and supervisory boards as well as their family members will be collated, adjusted, verified and then made available in a standardized format for the very first timeand on a transnational basis. Directors’ Dealings information is used primarily as a trading signal. It is taken into account when analyzing investment behavior, and also aids the development and testing of investment strategies.
The index composition of the two DAXglobal indices is reviewed once a year in September, while the DAXplus Directors’ Dealings indices are reviewed on a quarterly basis. All indices are reweighted on a quarterly basis. All new indices are calculated as price and performance indices in euros, US dollars and pounds sterling.
About Deutsche Börse Market Data & Analytics:
Market Data & Analytics calculates and publishes more than 2,500 indices in total. Deutsche Börse thus ranks among the world’s major index providers. Market Data & Analytics also compiles, distributes, and markets independent capital market information, such as price data, trading statistics, and back office information for banks and financial institutions.
DAXplus® and DAXglobal® are registered trademarks of Deutsche Börse AG.
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