Stoxx, a global index provider and creator of the European equity indices, has launched a new set of non-capped (NC) supersector indices Stoxx Europe 600 NC Supersector Indices for European region.
The new non-capped indices are intended to be used for benchmarking purposes and to cap the component weights in the existing Stoxx Europe 600 Supersectors Indices on a quarterly basis to ensure compliance with UCITS III standards for portfolio diversification.
The Stoxx Europe 600 NC Supersector Indices will be implemented with the September benchmark review and become effective on 20 September 2010.
The indices will be weighted by free-float adjusted market capitalization, without capping of component weights, according to the Stoxx.
Stoxx CEO Hartmut Graf said that the upcoming methodology change for the Stoxx Europe 600 Supersector Indices in regard to capping of the component weights will allow passive investment products to follow the performance of the well-known supersector indices, while complying with the regulatory requirements of UCITS III.
“We are launching the Stoxx Europe 600 NC Supersector Indices today to accommodate those market participants who prefer an un-capped benchmark, thus taking a further step to strengthen Stoxx’s product offering for the buy-side business.” Graf said.
The Stoxx Europe 600 NC Supersector Indices are focused to represent the largest European companies in each of the 19 ICB supersectors, and currently cover Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK.