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ABN AMRO Markets today launches Turbos on the AScX index as well as Certificates on both the small and mid-cap indices. These products offer investors an easy way of investing in these Dutch indices. To date, this had only been possible by buying 25 individual stocks.
The AScX index was established in March 2005 to boost the visibility of small-caps, and to serve as a benchmark for the 25 most traded small-caps. As such, the index was a natural addition to the successful AEX index (comprising the 25 most traded blue chip stocks in Amsterdam) and the Amsterdam mid-cap index (which also consists of 25 stocks). Index products and derivatives, such as options, futures and ‘leverage products’,have been available on the AEX index for some time – as of today, they will also be available in relation to the small and mid-cap indices.
Access to small and mid-cap index investments
As Joost van der Does de Willebois, CEO of NYSE Euronext Amsterdam explains, “Since the AEX was launched 25 years ago, investments in index-based products and derivatives have increased tremendously. We are pleased that ABN AMRO Markets has chosen to launch these new products, which will focus attention on the AMX and AScX indices”
Historically, there are several differences between the AMX and AScX indices on the one hand, and the AEX index on the other. The market capitalization of the AEX index amounted to EUR 428.4 billion on 18 March 2008, 13 times the capitalization of the mid-cap index and up to 30 times that of the small-cap index. Since its introduction in March 2005, the AScX index has produced a return of 30.5%, which compares favourably with the return of 10.7% on the AEX index.
AMX and AscX turbo’s, your possibility for leveraged index investments
As well as acting as a benchmark for the Dutch financial markets, the AEX index was initially intended to facilitate the trading of derivatives such as options and futures. These products have now been available for some 20 years. In 2007, ABN AMRO Markets launched Turbos on the AMX index and various mid-caps. As of today, leveraged investments in the AScX index – anticipating either a rise or a fall - are also possible.
As Erik Mauritz of ABN AMRO Markets explains, “Our clients are primarily active investors keen to broaden their horizons and continually seeking opportunities to generate returns. In recent years, ABN AMRO Markets has searched the world for suitable investment opportunities for these clients. With over 100 different certificates and nearly 1700 turbo products there are few markets that investors are unable to access though our bank, either with or without leverage. Today’s introduction just goes to show that investment opportunities are sometimes found close to home.”
Issue price and costs
The indicative issue price of the certificates is EUR 10.10. An annual management fee of 0.80% will be charged and dividends will automatically be reinvested in the certificates. The turbo funding costs on the AScX will be the same as the costs of funding turbo products on, for example, the AEX, which currently amount to around 5.5% a year. For more information, see www.abnamromarkets.nl/midcap .
