New Index to Measure the Performance of Russian GDRs,
an Expanding Portion of the Equity Market
LONDON (20 March, 2012) — Dow Jones Indexes, a leading global index provider, today announced that Lyxor has licensed the new Dow Jones Russia GDR Index to serve as the basis for its Lyxor ETF Russia (Dow Jones Russia GDR Index).
The euro-denominated version of the ETF is listed on the NYSE Euronext, Deutsche Boerse, Borsa Italiana and Bolsa de Madrid exchanges; the U.S. dollar-denominated versions are traded on the SIX Swiss and Singapore Exchanges.
The Dow Jones Russia GDR Index aims to measure the performance of the leading Russian Global Depository Receipts (GDRs) traded on the London Stock Exchange. GDRs are bank certificates traded as domestic shares of a local company, but offered for sale globally through foreign branches of an international bank.
“As Russian equities continue to draw interest from global investors, the new Dow Jones Russia GDR Index underscores our commitment to producing reliable measurement tools in dynamic and evolving markets,” said Michael A. Petronella, President, Dow Jones Indexes.
Nizam Hamid, Head of ETFs Strategy and Deputy Head of ETFs Europe, Lyxor said: “We look forward to continuing the success that Lyxor ETFs have had using a Dow Jones index to cover Russian equities. The new index combines both broad market coverage and liquidity which are important elements when creating an ETF.”
The Lyxor ETF Russia (Dow Jones Russia GDR) is the largest ETF focused exclusively on Russia securities that is listed in Europe, with assets under management totalling approximately €1.1 billion as of 14 March, 2012. Lyxor Asset Management, a subsidiary of Societe Generale Group, is one of the world’s leading ETF providers.
After passing through screens to ensure certain levels of liquidity are met for Russian issues, the remaining securities are ranked from largest to smallest based on float-adjusted market capitalisation; Russian GDRs placing within the top 82.5% of the ranking are included in the index. To limit turnover during index rebalancings, components that rank within the top 87.5% of the cumulative float-adjusted market-capitalisation coverage will remain in the index.
The weights of individual components are restricted to no greater than 20% of the index at the time of each quarterly review.
As of February 29, 2012, the top 10 components of the index are the following:
|Gazprom OAO AD||19.67%|
|Lukoil Holdings ADS||14.33%|
|Surgutneftegaz JSC ADS||14.21%|
|Sberbank Rossia ADS||11.03%|
|NorilskNickel Mining & MetallurgicalCo.ADS||7.41%|
The index is reviewed in March, June, September and December. Calculation of the Dow Jones Russia GDR Index began on October 27, 2011. Real index history is available daily from this date forward. Back-tested historical data have been calculated daily back to December 31, 2006, the date at which the index base value is set at 100.
Previously known as the Lyxor ETF Russia 10 (DJ Rusindex Titans 10), the Lyxor ETF Russia (Dow Jones Russia GDR Index) had been using the Dow Jones RusIndex Titans 10 as its underlying index. Calculation of the Dow Jones RusIndex Titans 10 will not be disrupted.