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FTSE Group (FTSE), the global index company, in partnership with Coast Investment and Development Company (Coast) has licensed Lyxor AM to use the FTSE Coast Kuwait 40 Index as the basis of an Exchange Traded Fund (ETF) to be listed on the London Stock Exchange today.
The FTSE Coast Kuwait 40 Index is designed to represent the performance of the Kuwait Stock Exchange in real time, for the purpose of trading exposure and derivative trading on the Kuwait Stock Exchange. Companies listed on the Kuwait Stock Exchange are ranked by free float adjusted market-cap and liquidity with the top 40 ranked companies entering as constituents of the index.
FTSE indices are increasingly selected by investment banks as the basis of ETFs and today’s fund joins a successful and rapidly growing family of over 100 FTSE index-linked ETFs available to investors on exchanges worldwide.
In a joint statement, Imogen Dillon-Hatcher, Managing Director, FTSE Group EMEA and Sulaiman T. Al-Abduljader, Vice President, Corporate Finance and Investment Services, Coast Investment & Development Company, said, “We are committed to providing the global investment community with indexing services to meet market demand for access to the GCC region and we are delighted to be involved in the launch of this first ever ETF focussing on the Gulf region.”
Daniel Draper, Global Head of Lyxor ETFs said, “”We are seeing a growing interest from our clients for investment opportunities in the Gulf region. We chose to base this ETF on the FTSE Coast Kuwait 40 index because the index achieves diversification by reducing single stock risk with a broad-based exposure and by avoiding volatile performance of a single market or sector. We also have a long dated relationship with FTSE Group and Coast is a very strong player in the Kuwaiti market.”
More information, including constituents, weightings, and performance of the FTSE Kuwait 40 index, can be accessed at www.ftse.com.
