Euromoney Indices is planning to undercut rival index providers by 50% for the cost of using European equities benchmarks.
The Euromoney EMIX Europe Indices, which combines large-caps and investable small-caps, aim to provide access to a broad universe of alpha generating opportunities without losing liquidity.
The indices are for pension funds and fund managers, and at a cost of £28,500 (€36,173) per annum, the provider says this is up to 50% less than charges from other index providers.
The indices will employ a strict minimum average daily turnover (ADTV) filter to ensure that 35% of the European small-cap sector is represented. A minimum liquidity requirement will also be set for small-caps, equivalent to the least liquid large-cap constituent.
The main index in the series, the Euromoney EMIX Europe Index, will represent the largest 350 stocks in the series and the most liquid 35% of the smaller companies. The index offers 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 [from HSBC] 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.”
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