FTSE launches Asian Sectors Index Series

Apr 2, 2009

The 18 tradable indices will be useful to providers of structured products, index funds and ETFs.

Global index provider FTSE Group has launched the new FTSE Asian Sectors Index Series, which is designed to support thematic Asian investment strategies. The series aims to provide investors with a transparent and cost-efficient exposure to Asian sector index strategies and has been created by FTSE Asia Research in consultation with market participants.

The series will support enhanced strategies such as sector rotation and long/short sector plays enabling the creation of structured products, index funds and exchange-traded funds (ETFs).

The series consists of 18 tradable indices, each sector index being derived from the individual subsectors of the Industry Classification Benchmark (ICB), which is the global standard developed in partnership with FTSE Group and Dow Jones Indexes. It is based on constituents of FTSE Asia Pacific Index which covers the large- and mid-cap stocks from China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand.

The 18 tradable indices in the series are:

FTSE Asian Autos and Trucks Index	FTSE Asian Marine Transportation Index
FTSE Asian Banks Index	FTSE Asian Oil & Gas Index
FTSE Asian Basic Resources Index	FTSE Asian Personal & Household Goods Index
FTSE Asian Chemicals Index	FTSE Asian Property Index
FTSE Asian Construction & Materials Index	FTSE Asian Retail Index
FTSE Asian Financial Services Index	FTSE Asian Technology Index
FTSE Asian Food & Beverage Index	FTSE Asian Telecommunications Index
FTSE Asian Health Care Index	FTSE Asian Travel, Leisure & Media Index
FTSE Asian Industrial Goods & Services Index	FTSE Asian Utilities Index

Jamie Perrett, head of quantitative research for Asia-Pacific at FTSE Group, says the index provider has noted evidence of increased investor appetite for sector plays, against a background of high volatility in regional equities markets.

The series will "provide a consistent and tradable performance benchmark across Asian sectors which can be used as a building block for sector asset allocation strategies", Perrett says.