New Market Vectors Indices offer pure-play exposure
Wednesday, 04 January 2012 10:03
Market Vectors Index Solutions (MVIS) has introduced the Market Vectors Unconventional Oil & Gas Index (MVFRAK), and the Market Vectors Nigeria-Focused Western Africa Index (MVLGOS).
The indices expands the coverage of the company’s emerging markets, small-cap and commodity indices. The indices are in line with MVIS’s strategy to focus on selected markets, asset classes and special segments, some of them traditionally difficult-to-access markets and sectors.
“The new Market Vectors Indices share the fact that they track markets we believe are of particular interest”, said Lars Hamich, Chief Executive Officer at MVIS. ”The new indices follow our unique pure-play approach, meet our high liquidity standards and provide diversified exposure with complete transparency”, said Mr. Hamich.
The new Market Vectors Indices offer pure–play exposure. Companies have to generate or, in the case of MVFRAK, have the potential to generate at least 50 per cent of their revenues in the target country, region or sector to be eligible. On a sector level, pure-play stands for pure sector exposure, on a country or regional level, exposure is not longer limited to locally listed companies but expanded to include offshore companies. Strict size and liquidity screenings and strong requirements as to the free-float market capitalisation of companies provide the basis for the high investability of the indices. Proven company capitalisation factors guarantee a diversified exposure and prevent overweightings of single index components.
Market Vectors Nigeria-Focused Western Africa Index
Provides exposure to locally listed companies and offshore companies that generate at least 50 per cent of their revenues from the countries in the target region: Benin, Burkina Faso, Cape Verde, Cote d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauretania, Niger, Nigeria, Senegal, Sierra Leone and Togo.
Top 5 companies:
Guaranty Trust Bank (8.0 per cent), Zenith Bank (8.0 per cent), Nigerian Breweries (7.0 per cent), First Bank of Nigeria (6.5 per cent), Afren (4.5 per cent).
Market Vectors Unconventional Oil & Gas Index
Provides exposure to companies that generate, or have the potential to generate, at least 50 per cent of their revenues from the unconventional oil and gas segment: coal bed methane (CBM), coal seam gas (CSG), shale oil, shale gas, tight natural gas, tight oil and tight sands.
Top 5 companies:
Canadian Natural Resources (8.0 per cent), Occidental Petroleum (8.0 per cent), EOG Resources (7.0 per cent) Devon Energy (6.4 per cent), Williams Cos (5.1 per cent).