Global Standards for African Investors. FTSE ASEA Pan Africa Index Series

Transcription

1 Global Standards for African Investors FTSE ASEA Pan Africa Index Series

2 Genesis of the FTSE ASEA Pan Africa Index Series African capital markets and regulatory environments are evolving rapidly Increased levels of both domestic and foreign investment Interest in frontier and emerging markets is high Investor desire for passive exposure is growing Africa in focus as source of return and portfolio diversification Creating a need for Enhanced transparency and visibility in African capital markets Independent metrics for research and performance measurement Representative African benchmarks built to world class standards New access products and investment choices Page 2

3 Overview FTSE ASEA Pan Africa Index Series Representative benchmark index Transparent, publicly available rule set Tradable foundation for differentiated financial product creation FTSE ASEA Pan Africa Index Series provides a tradable composition alongside a comprehensive, repres entative performance benchmark for securities trading on 19 African exchanges Botswana, Cameroon, Cape Verde, Egypt, Ghana, Ivory Coast, Kenya, Libya, Mauritius, Morocco, Mozambique, Nigeria, Rwan da, Tanzania, Tunisia, Uganda, Tanzania, Zambia, Zimbabwe Page 3

4 The FTSE Difference The FTSE ASEA Pan Africa Index Series is developed to FTSE s world class standards, emphasizing: Authority FTSE has been creating indices since 1984, and have been serving African investors for over a decade. Innovation Increasing visibility and investment options for domestic and international investors Representativeness Covering 19 major African markets, capped at country level to avoid overweighting Responsiveness Developed in conjunction with extensive market feedback to meet market needs Collaboration Result of successful pan-african collaboration to build a better benchmark Strong Governance Independent committees structure and freely available ground rules Page 4

5 Index Methodology Eligible Securities: Equities listed on ASEA member exchanges Weighting: Free float band adjusted, market capitalization weighted Screening & Capping: Liquidity screening ensures tradability. Capped at 20% at country level, maximum 30 stocks per country Governance: Reviewed in June & December by independent committees Calculation: Price and Total Return, End of Day Page 5

6 ICB Industry Weights & Constituents Constituents Weight % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Oil & Gas Basic Materials Industrials Consumer Goods Healthcare Consumer Servcies Telecommunications Utilities Financials Technology Page 6 Source: FTSE Group Data as at 22 November 2012

7 Country Weights & Constituents Constituents Weight % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Botswana Egypt Ghana Ivory Coast Kenya Mauritius Morocco Nigeria Tunisia Uganda Tanzania Zambia Zimbabwe Page 7 Source: FTSE Group Data as at 22 November 2012

8 Performance Oct-2009 Apr-2010 Oct-2010 Apr-2011 Oct-2011 Apr-2012 Oct-2012 FTSE ASEA Pan Africa Index ex South Africa FTSE Secondary Emerging FTSE Frontier 50 % Performance Total Return (USD) 1W 1M 3M 6M 12M YTD 3Y 5Y FTSE ASEA Pan Africa Index ex South Africa FTSE Secondary Emerging FTSE Frontier Page 8

9 Summary The FTSE ASEA Pan Africa Index Series provides: A representative benchmark for African equity portfolios A tradable foundation for new investment products World class independent index design, management and governance Greater transparency and visibility for African markets Global standards for African investors Page 9

10 More Information Name: Jonathan Cooper Title: Managing Director, Middle East & Africa Tel no: Jonathan.Cooper@FTSE.com FTSE Indices FTSE is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited ( FTSE ) under licence. All rights in and to the [FTSE ASEA Pan Africa Index Series] ( Index ) vest in FTSE. The Industry Classification Benchmark ( ICB ) is owned by FTSE. All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by FTSE or its licensors for any errors or for any loss from use of this publication. Neither FTSE nor any of its licensors makes any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the name of the Index set out above or the fitness or suitability of the Index for any particular purpose to which it might be put. No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of FTSE. Distribution of FTSE data and the use of FTSE Indices to create financial products requires a licence with FTSE and/or its licensors. FTSE does not accept any liability to any person for any loss or damage arising out of any error or omission in the ICB. Page 10

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