BM&FBOVESPA starts the real-time calculation and publication today of the Unsponsored BDR Index – Global (BDRX). The new indicator is composed of the 70 unsponsored BDRs that are listed on the Exchange and was created to contribute to the diversification of foreign investors’ investment strategies for foreign assets. The index offers asset managers and the market a point of reference for the performance of the depository receipts of foreign stocks, traded on BM&FBOVESPA.
Level 1 Unsponsored BDRs, traded since October 2010 on BM&FBOVESPA, are certificates that represent stocks issued by publicly-traded companies headquartered abroad. Their issue and registration are the responsibility of a depository institution in Brazil, in which none of the participating companies has a stake.
The Unsponsored BDR Index – Global (BDRX) will have its portfolio recalculated every four months, in the same manner as the other BM&FBOVESPA indexes.
Basic Criteria
All of the Unsponsored BDRs listed on BM&FBOVESPA and which have Market Makers will be included in the BDRX Index. New Unsponsored BDRs will only be included in the quarterly rebalancing if they are authorized for trading at least one day prior to the date for the rebalancing of the portfolio.
The value of the index’s theoretical portfolio will be reassessed during every calculation period, by multiplying the theoretical quantity of every Unsponsored BDR by the price of the last transaction registered within this interval, or in the absence of this, by the reference price of each asset (arithmetic average of the best ask and bid prices registered at the time of calculation).
The weightings in the BDRX Index portfolio will be calculated by the market value of the company in Brazilian Reals (total quantity of stocks issued by the company, announced by the issuer, adjusted to the stocks/BDRs proportion, multiplied by the BDR quotation). The base for the index was set at 1,000 points for the date of October 05, 2010.
