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Hartmut Graf, chief executive officer, STOXX Limited.

STOXX launches currency hedged version of European benchmark index


STOXX Limited has introduced the STOXX Europe 600 Hedged EUR Index, a currency hedged strategy benchmark aimed at investors seeking exposure to the well-known STOXX Europe 600 Index, while at the same time looking to reduce the risk of currency fluctuations.

The new index is designed to act both as a proper benchmark for actively managed funds, and to underlie exchange-traded funds and other investable products.

"With the launch of the STOXX Europe 600 Hedged EUR Index, we are offering market participants a single, innovative and rules-based tool that enables them to follow the performance of the renowned STOXX Europe 600 Index, while at the same time limiting the risks of currency fluctuations," says Hartmut Graf, chief executive officer, STOXX Limited. "This new index caters to the needs of our growing global client base, and thus marks another milestone in STOXX’s global expansion."

The STOXX Europe 600 Hedged EUR Index replicates a hypothetical investment portfolio that is designed to represent the returns of the STOXX Europe 600 Net Return Index while hedging the currency risk, but not the underlying constituent risk. Market participants who employ a currency-hedged investment strategy are generally willing to forgo potential currency gains in exchange for the reduction in the risks associated with foreign exchange fluctuations. To achieve this, the index combines the performance of the underlying STOXX Europe 600 Index with a hypothetical, rolling investment into one-month foreign exchange forward contracts.

The underlying STOXX Europe 600 Index is reviewed quarterly in March, June, September and December. Daily history is available back to December 30, 1998.

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