by Qontigo
The STOXX® Global 1800 Index has been used by Cirdan Capital Management and SmartETN to issue a euro-denominated tracker certificate, the first investment product linked to the global benchmark.
The certificate gives investors access to a basket of the world’s biggest companies and is a tradeable alternative to existing index-based offerings. The STOXX Global 1800 Index tracks the largest and most liquid stocks in developed markets, with an equal representation of the North America, Europe and Asia/Pacific regions.
Antonio de Negri, Chief Executive Officer at London-based Cirdan, told SRP that the STOXX Global 1800 Index was considered superior to its competitors in several aspects and offered a “fresh new” alternative to investors.1 The index has a free-float market-capitalization-weighted selection methodology and minimum liquidity thresholds that guarantee replicability. The fixed-number STOXX Global 1800 Index is an aggregate of the three developed regions and includes derived sub-indices representing 19 Supersectors in the Industry Classification Benchmark (ICB) system.
According to SRP, this is the first structured product tracking the STOXX Global 1800 Index. There are over 240 such products tracking the regional STOXX® Europe 600 Index, SRP said. Cirdan Capital’s certificate was listed on Jan. 14 on the Frankfurt stock exchange and Italy’s EuroTLX, and requires a minimum investment of 1,000 euros.
In the five years to Jan. 15, 2020, the STOXX Global 1800 Index rose 43.7%.2 That compares to a 43.9% gain for the MSCI World Index and a 42.3% advance for the FTSE World Index.
1 SRP, ‘Exclusive: Cirdan deploys first-of-a-kind MSCI World alternative,’ Jan. 15, 2020.
2 Price returns in USD.
