Looking for a total return measure that will account for withholding taxes specific to you?
Need a measure for your currency-forward hedging strategy?
Looking for a benchmark that excludes management fees?
Standard & Poor's Custom Index Solutions now offers currency hedged, net total return and net of fees indices to help you more accurately benchmark your investment performance.
The benefits are clear:
The choice of utilizing an existing S&P index (i.e. S&P 500, S&P/Citigroup, etc.) or a completely independent set of constituents.
The ability to receive total return calculations using withholding tax rates specific to your requirements.
The opportunity to hedge using forward rates for almost any currency in our broad universe of country coverage
The comfort of having an independent third-party , whose core competency is the calculation of indices, verify and disseminate your index returns.
Please note that Standard & Poor's now offers net total returns using maximum tax rates and currency hedged returns in USD, EUR, GBP & JPY as part of its standard global index offering.
Custom Index Solutions in Practice
The State of Michigan uses a 50% hedge on the S&P/Citigroup BMI EPAC Index as their benchmark to help reduce currency related variance from index returns.
ABN Amro, as part of their customized version of the S&P/Citigroup BMI World Index, receives both hedged and net total return calculations of the indices. The net total return calculation is done using withholding tax rates provided by ABN Amro to S&P.
Would you like to equal weight or cap a benchmark because a few constituents dominate your portfolio?
Would you like to alter the weight of certain regions or sectors to take advantage of opportunities in the market?
Let Standard & Poor's Custom Index Solutions help you re-weight an index to match your investment mandate or strategy.
The benefits are clear:
The ability to have an index that equally weights each constituent, sector or region.
The opportunity to re-weight regions or sectors within an index according to your preference.
The ability to cap constituents, sectors or regions at any percentage to help meet diversification laws or investment strategies.
All of the above could be done at a rebalancing schedule of your choosing.
The confidence of having an independent third-party whose core competency is the calculation of indices, verify and disseminate your index returns.
Custom Index Solutions in Practice
IPOX Schuster LLC wanted to calculate indices that treated Initial Public Offerings (IPO’s) as a separate investment sector. Standard & Poor's now calculates the IPOX Composite, IPOX-100 and IPOX-30 indices on a real-time basis. The IPOX-100 and IPOX-30 indices utilize a 10% weight capping on all constituents and is rebalanced on a quarterly basis.
To find out more go to: www.ipoxschuster.com.
Shareholder scrutiny of executive compensation is a critical issue that concerns all company executives.
Utilizing Standard & Poor's experience in index calculation, and the independence that our brand signifies, you and your shareholders can be confident your company's executive share/option TSR performance hurdle is precise.
The benefits are clear
Your company has the flexibility to choose comparators from Standard & Poor's database of over 8,500 industry-classified stocks, from 52 countries.
Executive employment tenure is at times volatile; therefore the ability to generate historical calculations and report performance returns on an as needed basis is critical.
Standard & Poor's has a dedicated team of global analysts who are available to respond to your reporting requirements.
TSR Performance Hurdles are considered the most transparent and accurate means of measuring and comparing the performance of companies.
8,500+ Constituents
52 Countries
10 Sectors, 24 Industry Groups, 63 Industries,
128 Sub-industries
It's your index. You decide.
Standard & Poor's Custom Index Solutions gives you the freedom to create an index that better reflects your mandate or investment strategy.
The benefits are clear:
The ability to exclude or combine sectors, regions or constituents from existing S&P indices (S&P 500 ex Tobacco, S&P/ASX 200 ex Property Trusts)
The freedom to create an index which combines sector, geographic and individual constituent attributes, using our database of over 8,500 stocks as your universe.
The confidence of having your index returns verified and disseminated by an independent third-party whose core competency is the calculation of indices.
Custom Index Solutions in Practice
Ethibel, a Belgian research and labeling agency for social responsible investing needed a global benchmark to track their independently screened social-ethical companies. Standard & Poor's now calculates the Ethibel Excellence and Pioneer Indices (Global & Europe) including hedged and net total return calculations. To find out more go to www.ethibel.org
ABN Amro was looking to add a defensive, dividend oriented equity style, also taking advantage of changing withholding and income tax laws at home and abroad. They decided to use a custom version of the S&P/Citigroup BMI World Index, including all stocks reaching a certain dividend yield threshold to use as a benchmark to a fund. Standard & Poor’s now delivers hedged, non-hedged and net return (based on client-specified tax rates) versions of the index. For more information go to: www.asset.abnamro.com
Citigroup Depositary Receipts Services was looking to create indices that track international sentiment towards non-US markets through the use of ADRs and GDRs. S&P now calculates the Citigroup Liquid DR Index series comprised of four regional indices.
To find out more check out Citigroup's website at www.citigroup.com/adr
