Thomson Reuters has expanded its index series by launching a total return index that includes only companies that are classified small and mid-cap.
The Thomson Reuters Western Eurozone Mid & Small Cap Total Return Index is market capitalisation weighted and is designed to include only companies that can be genuinely considered small and mid-cap, due to market cap being the primary selection screen and free-float the second criteria.
This selection methodology limits the number of components to around 300 to make the index tradable. Thomson Reuters worked closely with a group of asset managers who provided input to the definition of small and mid-cap for the index.
The index can be licensed by ETF providers and used as a benchmark or as a research tool by asset and investment managers. It is not just a sub-index of the Thomson Reuters Global Equity Index series, but has a different selection and weighting criteria to achieve its specific objective.
The calculation methodology and treatment of corporate actions remains the same as the Thomson Reuters Equity Indices.
“Asset and investment managers are constantly searching for pockets of investment opportunity within specific sectors of the market,” says Stephan Flagel (pictured), head of benchmarks and indices at Thomson Reuters. “As a leading provider of indices, we are keen to work with investment professionals to provide differentiated content and solutions as we show in the form of the Thomson Reuters Western Eurozone Mid & Small Cap Total Return Index which provides them the exposure, transparency and insight necessary in order to deliver greater value to their clients.”
