S&P Unveils Global Corporate Index With World's Premier Exchanges

Standard & Poor's, the world's premier provider of index services, today unveiled the S&P Global 100 Index, the world's first investable stock index covering companies whose businesses are truly global in nature. Standard & Poor's collaborated with the New York Stock Exchange to develop the index as part of a joint effort to meet the growing need for price benchmarks of global companies whose performance is tied more to global economic, competitive, and industry trends than headquarter locations. Indeed, three of the world's premier stock exchanges - the New York Stock Exchange, the Tokyo Stock Exchange, and the Deutsche Börse - will combine their expertise in a working group that oversees the index's composition. In addition, all three exchanges expect to list exclusively investment products-both cash market products and derivatives-linked to the new index, an unprecedented event that underscores the global demand for exchange-tradable products available to investors at all hours. "The S&P Global 100 Index recognizes the need for an integrated approach to equity markets today, and working with these major exchanges underscores Standard & Poor's commitment to a global approach in its information services business," said Leo C. O'Neill, president, Standard & Poor's. "Given the globalization of performance measurement and index-based asset management, the S&P Global 100 enhances Standard & Poor's strategy to provide investors the broadest, most comprehensive, and most consistently maintained set of global benchmarks." "The New York Stock Exchange is committed to providing investors worldwide the most liquid global products and global trading opportunities. With 70 of the 100 companies in the S&P Global 100 listed on the Exchange, the index is a unique opportunity for us to recognize some of the great companies that conduct business in all corners of the world," said Richard A. Grasso, NYSE chairman and chief executive officer. "We are happy to work with Standard & Poor's, and our partners at the Tokyo and Frankfurt exchanges, to ensure that investors around the world can tap into the efficiency of exchange trading through this investable product." In recent years, Mr. O'Neill noted, many companies have spread both their operations and customer base beyond a single economic domicile. Globalization in this instance means that the share price performance of such companies often is affected more by global economic, sectoral, and market conditions than those prevailing in the local market where the company is headquartered. "The S&P Global 100 represents an effort to meet the needs of investors wishing to track the performance of these globalized companies," said Robert Shakotko, senior vice president, Standard & Poor's. "We expect to see the launch of investment products linked to the index quite soon." Currently, Barclays Global Investors, a division of Barclays PLC, is considering developing investment products based on the S&P Global 100. "As with other S&P indices, the S&P Global 100 presents a terrific opportunity for investors seeking broad equity coverage of truly global companies," said Lee Kranefuss, chief executive officer, Individual Investor Business, Barclays Global Investors. The S&P Global 100 Index consists of 100 companies that are actively traded among investors from many countries and derive significant income from outside the country in which they are headquartered. Recently, Standard & Poor's completed the S&P Global 1200, an investable global benchmark that is the first to be calculated in real time, providing the opportunity to develop a whole new range of global index products. "Following the successful launch of the S&P/TOPIX 150 index, this new collaboration with Standard & Poor's, the NYSE, and Deutsche Börse further ensures the worldwide positioning of the Tokyo Stock Exchange while at the same time extending the range of global investment instruments available in Japan and Asia," said Yoshiaki Kaneko, senior managing director, Tokyo Stock Exchange. "Indices and index-linked securities are at the heart of well-functioning global markets, and the opportunity to join with our counterparts in New York and Tokyo in listing S&P Global 100 Index products represents a critical opportunity for investors in Europe to access an important investment tool," said Christoph Lammersdorf, board member, Deutsche Börse AG. The members of the S&P Global 100 Index are large companies with significant operations outside their home country. Each member of the S&P Global 100 Index is a member of the S&P Global 1200 Index. Changes in index composition can arise due to mergers, takeovers, or other corporate actions, in which case a replacement company will be named by the Standard & Poor's Global 100 Index Committee. Turnover in the components of the index is expected to be low. The Index Committee consists of both senior Standard & Poor's investment strategists and representatives of the NYSE, the Tokyo Stock Exchange, and the Deutsche Börse; however, companies named to the S&P Global 100 need not have their shares trade on any of these exchanges. Standard & Poor's, a division of The McGraw-Hill Companies, provides financial information, analysis, advice, and credit ratings globally. Its Index Services unit maintains a wide variety of investable portfolio indices, including the S&P 500 for the U.S., and constituent indices of the Global 1200 Index. For information, visit www.spglobal.com. Founded in 1888, The McGraw-Hill Companies is a leading information services provider meeting worldwide needs in education, business, finance, the professions and government. The corporation employs 16,500 people located in more than 400 offices in 32 countries. Sales in 1999 were $4 billion. The New York Stock Exchange is the world's premier equities market and currently has approximately 3,020 listed companies from 49 countries with a total global market capitalization of $16.2 trillion that trade an average 1.07 billion shares daily. Among them are 402 non-U.S. companies that trade an average 66 million shares daily valued at $2.7 billion. Further information on the NYSE can be obtained at www.nyse.com. The Tokyo Stock Exchange consistently ranks as one of the world's top exchanges and is Japan's premier market for both cash and derivative products, accounting for more than 80% of all equity trading in Japan. In 1999, more than 115 billion shares worth more than 185 trillion yen (U.S.$1.76 trillion) were traded on the exchange. With a proud 120-year history at the heart of the Japanese and Asian economy, the Tokyo Stock Exchange continues to provide Japanese and international investors with a transparent and efficient marketplace. Deutsche Börse is the leading European Exchange organization operating the Frankfurt Stock Exchange and Europe's most successful growth market, the Neuer Markt. As joint derivatives market for financial derivatives, Deutsche Börse and SWX Swiss Exchange, operate Eurex, the worlds largest derivatives exchange. The Frankfurt Stock Exchange is the largest domestic market in Europe with an annual turnover of more than 5 trillion Euro. Barclays Global Investors is one of the world's largest investment firms with assets under management of more than $750 billion. A global investment firm devoted exclusively to quantitative investing, BGI is also the world's largest provider of structured investment strategies such as indexing, tactical asset allocation, and quantitative active strategies. BGI manages investments for individual and institutional investors, including corporate and government retirement plans, foundations, endowments, and mutual fund distributors. A subsidiary of UK-based Barclays PLC, BGI is headquartered in San Francisco, California, and has offices worldwide.