2 February 2007 marked the launch of the new World Luxury Index , calculated by Deutsche Börse for BNP Paribas as a customized index. The index tracks the 20 largest stocks, in terms of market capitalization, from the luxury goods sector: the companies in the index must generate at least 50 percent of their total revenue from luxury goods. BNP Paribas will be using the index as an underlying for an open-end certificate. Further structured products are currently being planned.
Depending on the sector, a stock is considered to belong to a luxury goods manufacturer either by virtue of the brand or due to the minimum sale price. The companies in the index come from the high-end consumer goods sector, covering segments such as fashion, jewelry or automotive. No individual stock may account for more than 10 percent of the World Luxury Good index. The index is rebalanced by Deutsche Börse on an annual basis, while the stocks are weighted every quarter on the basis of the companies’ market capitalization and stock exchange trading volume.
Deutsche Börse Market Data & Analytics develops customized indices for providers of structured finance products, asset managers, pension funds, insurers and investment funds. Index products (either as a benchmark or an underlying) are developed according to individual demand for certain regions, sectors, subjects, asset classes or complete investment strategies. The range of services for customized indices covers the entire business process, from consultancy and design to the calculation and dissemination of index data. The World Luxury Good index is already the fifth customized index to be calculated by Deutsche Börse.
Market Data & Analytics calculates and publishes more than 2,100 indices in total. Deutsche Börse thus ranks among the world’s major index providers. Market Data & Analytics also compiles, distributes, and markets independent capital market information, such as price data, trading statistics, and back office information for banks and financial institutions.
