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Hartmut Graf, chief executive officer, STOXX Limited.

STOXX equal weight indices licensed to Ossiam

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STOXX’s new EURO STOXX 50 Equal Weight Index and the existing STOXX Europe 600 Equal Weight Index have been licensed to Ossiam to underlie two exchange-traded funds (ETFs).

 

This is the first time that the EURO STOXX 50 Equal Weight and STOXX Europe 600 Equal Weight indices will be used as the basis of an ETF.

"STOXX is dedicated to not only bring innovative index concepts to the market, but also apply new and superior strategies to existing indices. With the launch of the EURO STOXX 50 Equal Weight Index we take a new weighting approach to the leading European blue-chip index," says Hartmut Graf (pictured), chief executive officer, STOXX Ltd. "By licensing the EURO STOXX 50 Equal Weight and STOXX Europe 600 Equal Weight indices, Ossiam is first to offer market participants access to an equal weight scheme applied to Europe’s leading indices."

Isabelle Bourcier, Head of Business Development at Ossiam, the affiliated ETF specialist of Natixis Global Asset Management, says: "Ossiam aims to develop an innovative set of ETFs. We believe the Equal Weight strategy offers an investment approach that addresses explicitly the benefits of beta diversification through an easily readable portfolio composition and distinctive stock and sectorial concentrations, Many investors are looking for other forms of equity index construction. We will soon bring out value-added products to fit their needs".

The EURO STOXX 50 Equal Weight Index follows the same methodology as the EURO STOXX 50 Index, except for the weighting process. In the new index, all components share an equal weight, which leads to an increased exposure to smaller index components. In the market capitalization weighted EURO STOXX 50 Index, the top 10 components make up 38% of the index, whereas in the equal weight index, this percentage decreases to 21%. As relative weights shift over time, the index is rebalanced quarterly and weights are brought back to equal allocations.

The EURO STOXX 50 Equal Weight Index is reviewed simultaneously with the EURO STOXX 50 Index on an annual basis in September. It is available in price and net return versions, and is calculated in Euro and US Dollar (USD). Daily history is available back to December 31, 1999.

The STOXX Europe 600 Equal Weight Index was launched on October 28, 2010. The index follows the same methodology as the STOXX Europe 600 Index, except for the weighting process. The STOXX Europe 600 Equal Weight Index is reviewed simultaneously with the STOXX Europe 600 Index on a quarterly basis in March, June, September and December. It is available in price, net and gross return versions, and is calculated in Euro and US Dollar (USD). Daily history is available back to December 31, 1991 for the price and net return versions, and back to December 31, 2000 for the gross return version.

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