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FTSE Group, the award-winning global index provider, and initial public offering (IPO) expert Renaissance Capital LLC, today announce the launch of the new FTSE Renaissance Asia Pacific IPO Index Series. The new set of easily replicable benchmark and tradable indices enables investors to capture the early performance of newly issued equities such as L’Occitane, which listed in Hong Kong last week.
The series consists of the broad FTSE Renaissance Asia Pacific ex Japan IPO Index and the tradable FTSE Renaissance Hong Kong/China Top IPO Index (including Hong Kong Stocks, Red Chips and H shares), which are suitable for the creation of exchange traded and index tracking funds as well as derivatives.
Because many IPOs can wait longer for inclusion in most major benchmarks, their early returns are missed. The FTSE Renaissance Asia Pacific IPO Index Series includes a rolling two-year population of IPOs, starting from the first day of trading and exiting the index after a 500 day trading horizon when they become seasoned equities.
Jamie Perrett, Head of Quantitative Research for FTSE Asia Pacific, comments “In designing the new FTSE Renaissance Asia Pacific IPO indices, our aim was to provide an easy to understand, transparent approach to the index methodology. The design ensures the new indices capture the Asia Pacific IPO market in an easily to replicate and investable index. As investment in the Asia region continues, being able to gain access to a steady pipeline of Hong Kong/China themed IPOs listed on the Hong Kong exchange can be an attractive strategy for both domestic and international investors.”
“The FTSE Renaissance Asia Pacific IPO Index Series is a way for investors to capitalize on the innovative businesses arising from the fastest growing economies in the world,” said Kathleen Smith, Chairman of Renaissance Capital LLC.
