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New Euromoney indices enable investors to cut benchmarking fees by up to 50 per cent

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Euromoney Indices has unveiled a sweeping new strategy for its index business, which it acquired from HSBC at the end of 2013.

The focus for the company will be a benchmark series which combines large caps and investable small caps at a price which undercuts its rivals by up to 50 per cent.
 
The Euromoney EMIX Europe Indices will provide access to a broad universe of alpha generating opportunities without sacrificing liquidity.
 
The indices, which will primarily be targeted at pension funds and fund managers, are available at up to a 50 per cent discount when compared to other leading indices providers. Euromoney Indices charges a flat rate of GBP28,500 per annum for the use of its indices, which includes the ability to use the index name and data in all marketing materials, anywhere in the world, both in print and online. The fee includes fully comprehensive data services as standard, including daily constituent files, daily divisor and trader files and a five day forward looking corporate actions calendar. 
 
Euromoney Indices has designed the new index series to address investment managers’ need to diversify into smaller companies in order to access attractive growth opportunities across the continent. Euromoney Indices believes that smaller companies are currently underrepresented in leading European indices. By employing a strict minimum average daily turnover (ADTV) filter, Euromoney Indices ensures that 35 per cent of the European small cap sector is represented without reducing overall liquidity. The minimum liquidity requirement set for small caps is equivalent to the least liquid large cap constituent.
 
The largest 350 stocks in the series and the most liquid 35 per cent of the smaller company universe are represented by the Euromoney EMIX Europe Index, the main index in the series. There is no fixed number of companies in the index but at launch will comprise 646 companies across 16 European countries. In total the index series comprises 243 indices covering a range of regional, country, sector and currency breakdowns. 
 
Sui Chung, managing director of Euromoney Indices, says: “Since we acquired our index business in autumn 2013 we have been carefully assessing the benchmarking needs of the financial industry. We have identified a pressing need among investors for access to cost effective, robust indices which are suited to today’s investment environment. The inclusion of smaller companies in our indices offers a more complete representation of the European market through an investable, liquid index.
 
“The cost of indices, and an extensive list of extra charges, has been a bone of contention for many years among fund managers and their pension fund clients. Our new index family meets the requirements of current investors at a fixed fee which we believe investors will find attractive.”
 
Euromoney Indices are produced by a team of 20 analysts with more than 150 years collective experience.
 
The index series is rebalanced quarterly. From launch on 22 September, data history will be available back to 2006, and will subsequently be populated back to 1986.

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