DAXglobal BRIC Index December 2009

Transcription

1 DAXglobal BRIC Index December 2009

2 Agenda Deutsche Börse Issuer Data & Analytics, 14 May 2010 Page A. Investment rationale for BRIC countries 3 B. Index methodology 7 C. Index keyfigures 13 D. Master Data 19 DAXglobal Russia Index 05/

3 A. Investment rationale for BRIC countries

4 DAXglobal BRIC Index the first investable index covering the whole of the BRIC countries BRIC Economic Facts India: India s strength is a welleducated and Englishspeaking workforce Sector focus on IT and Pharma 4th largest economy in the world in 2008 Russia: Holds an important share of worldwide oil and gas resources, metals and diamonds High technological level 7th largest economy in the world in 2008 Brazil: Holds an important share of worldwide industrial and base metals Important agricultural sector 9th largest economy in the world in 2008 China: Low labour costs suggest China as the workshop of the developed world Big market through biggest population in the world 2nd largest economy in the world in Source: World Bank, ABN Amro: Emerging Markets wachsen, wachsen Sie mit!; CIA World Factbook 2008

5 There are numerous reasons why BRIC has the potential for impressive economic growth Investment story BRIC I Facts about BRIC ( ) Average GDP Average GDP per capita Average annual GDP growth Share of world s real GDP Population Total population (42.5% of world population) Working population (as share of total population) 3824 bn USD 2400 USD ~ 9.25% ~27% 2.7 bn 62.7% Close to 15%, BRIC s share of global trade is now double its level in 2001 More than 30% of world reserves are held by the four BRIC countries FDI inflows into BRIC have tripled since 2000 to 15% of world total; outflows have risen even sixfold In less than 40 years, BRIC is estimated to be larger than the G6 in US Dollar terms BRIC s GDP growth is forecasted to remain at above 5% for at least 30 years 5 Source: Goldman Sachs: Growth and Development: The Path to 2050

6 GDP growth rates and the magnitude of the BRIC economies reveal the region s economic potential Investment story BRIC II GDP and growth rate [ f] Estimated % of world GDP [ f] Projected GDP (in bn USD) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, Projected real GDP growth (in %) Other 19.80% Canada 2.50% BRIC 27.00% US 26.50% BRIC G6 BRIC real GDP growth 0 Italy 3.80% France 3.90% UK 3.60% Germany 5.60% Japan 7.30% Projection of continuous impressive economic growth BRIC s GDP is expected to dominate all G6 countries combined by 2039 BRIC countries are expected to make the highest contribution to the world GDP Increasing impact on worldwide economy is inevitable 6 Source: Goldman Sachs: Growth and Development: The Path to 2050

7 B. Index methodology

8 DAXglobal BRIC provides an investable and replicable access to increasing economic markets with growth potential DAXglobal BRIC Index Overview Index performance Concept Weighting according to market capitalization, country cap at 35% and company cap at 10% Selection is done from the universe of listed American Depository Receipts (ADRs) for Brazil, India and Russia as well as H-Shares and Red Chips for China Selection criteria are market capitalization and turnover DAXglobal BRIC PR Key figures 1) Performance Volatility DAXglobal BRIC 18.2% 29.6% MSCI Emerging Markets 11.5% 22.0% MSCI Emerging Markets Sep-01 Sep-03 Sep-05 Sep-07 Sep-09 DAXglobal BRIC Index has a better risk/return profile compared to the MSCI Emerging Markets Index due to significantly higher return and comparable volatility 1) annualized 21/09/ /12/2009 Source: Deutsche Börse AG DAXglobal Russia Index 05/

9 Transparent and rule-based index concept offers investable access to BRIC countries DAXglobal BRIC: Index concept Universe Selection criteria Weighting Comprises companies from Brazil, Russia, India and China. 10 companies per Country. H-Shares and Red Chips represent China Brazil, Russia and India are represented through ADRs Selection is based on market cap and average daily trading turnover only. Market capitalization Average daily trading turnover > 1 Mio USD Yearly review of index composition (September) Weighting according to market cap containing a country and single constituent cap. Weighting is based on market capitalization Cap at 10% per security Cap at 35% per country Quarterly chaining Highly transparent and understandable index concept to cover the BRIC countries via an easily replicable index underlying 9 Source: Deutsche Börse AG

10 DAXglobal BRIC is well diversified with a bias towards the Energy sector Diversification Sector distribution of DAXglobal BRIC Index 1) Industrials 1.66% Utilities Information 1.75% 2.20% Technology 3.93% Financials 28.30% 12.00% Materials Consumer Staples Energy 38.03% 12.14% Telecommunication Services DAXglobal BRIC is composed of the well-known BRIC companies with a market leading position Weighting as well as industry sectors indicate a diversified portfolio DAXglobal BRIC represents more than 70% market cap of the total national market benchmarks BRIC economies are dominated by Energy and Financial industries 1) December Source: Deutsche Börse AG

11 TOP 10 constituents of DAXglobal BRIC represent wellknown emerging markets Blue-Chip companies Top 10 Index Constituents 1) Name BB Ticker ISIN Country Sector Index weight CHINA CONSTR. BANK H YC HK Equity CNE H1 CHINA Financials 9.28% CHINA MOBILE LTD. HD-, HK Equity HK HONG KONG Telecommunication Services 8.41% OAO GAZP.ADR REG.S 4/RL 5 OGZD LI Equity US RUSSIA Energy 8.15% PETROLEO BRASILEIRO ADR 2 PBR US Equity US71654V4086 BRAZIL Energy 7.77% VALE S.A. ADR VALE US Equity US91912E1055 BRAZIL Materials 5.67% NK ROSNEFT GDR REGS RL-01 ROSN LI Equity US67812M2070 RUSSIA Energy 5.35% RELIANCE INDS GDR 144A/2 RIGD LI Equity US INDIA Energy 4.55% IND.+COMM.BK CHINA H YC HK Equity CNE G1 CHINA Financials 3.21% CNOOC LTD SUBDIV. HD-, HK Equity HK HONG KONG Energy 3.14% ITAU UNIBCO HLDG PFD 500 ITUB US Equity US BRAZIL Financials 3.01% 1) December 2009 Source: Deutsche Börse AG DAXglobal Russia Index 05/

12 DAXglobal BRIC Index is a perfect underlying for structured products and investment funds Possible Applications Application Benefit Title Underlying for structured products Ebene Rule-based 1 tracking for structured Ebene products, 2 funds and ETFs Liquid, transparent and easy access to emerging BRIC countries Investment function For investors with a strategic and chance-oriented investment perspective Information & Benchmark Benchmark and market indicator for emerging BRIC countries Good structured index-underlying for structured products focusing on market access to BRIC countries Underlying with investment objective to achieve long-term performance by investing in the biggest BRIC companies Transparent, rule-based and replicable benchmark as well as useful information tool for investment analysts and portfolio manager Structured products linked to DAXglobal BRIC Index allow coverage of emerging BRIC countries in a strategic and tactical asset allocation 12

13 C. Index key figures

14 DAXglobal BRIC Index demonstrates much better risk/return profile compared to benchmark indices Overview: key figures Annualized Index Key Figures 1) DAXglobal BRIC Index S&P BRIC 40 Index MSCI Emerging Markets Index Annual Performance Annual Volatility Correlation with MSCI Emerging Markets Index 16.9% 31.6% % 31.7% % 23.2% 1.0 Better annual performance of DAXglobal BRIC Index relative to benchmark Indices Attractive Sharpe Ratio of DAXglobal BRIC Index due to higher annual return Sharpe Ratio ) Calculation is based on the historical simulation data from 02/02/ /12/ Source: Deutsche Börse, Bloomberg

15 In historical simulations DAXglobal BRIC generates appealing performance Historical Simulation Benchmarking of DAXglobal BRIC Index performance Higher annualized performance and lower volatility of DAXglobal BRIC compared to S&P BRIC 40 Index S&P BRIC 40 DAXglobal BRIC PR Key figures 1) Performance Volatility DAXglobal BRIC 16.9% 31.6% MSCI Emerging Markets 10.4% 23.2% Euro Stoxx % 22.8% S&P BRIC % 31.7% MSCI Emerging Markets Euro Stoxx 50 Feb-04 Jul-05 Dec-06 May-08 Oct-09 DAXglobal BRIC Index has a significantly better risk/return profile compared to other benchmarks due to its higher return 1) annualized 02/02/ /12/2009 Source: Deutsche Börse AG DAXglobal Russia Index 05/

16 Comparison of index performance Deutsche Börse Issuer Data & Analytics, 14 May 2010 On average DAXglobal BRIC Index shows better performance compared to benchmarks Performance in % Performance-Difference 100% 75% 50% 25% 0% -25% -50% -75% 32% 27% 22% 17% 12% 7% 2% -3% -8% Average Year DAXglobal BRIC PR MSCI Emerging Markets S&P BRIC 40 Index Average Year Average historical performance shows the dominance of DAXglobal BRIC Index compared to other benchmarks Δ DAXglobal BRIC PR, MSCI Emerging Markets Δ DAXglobal BRIC PR, S&P BRIC Source: Deutsche Börse, Börse, Bloomberg Bloomberg

17 DAXglobal BRIC Index shows low correlation with Euro Stoxx 50 SM Correlation Matrix Index Correlations 1) DAXglobal BRIC DAXglobal BRIC 1 S&P BRIC 40 Index Euro Stoxx 50 MSCI World MSCI Emerging Markets Low correlation of DAXglobal BRIC with Euro Stoxx 50 SM and MSCI World Index S&P BRIC 40 Index Euro Stoxx 50 MSCI World MSCI Emerging Markets DAXglobal BRIC Index provides perfect diversification for Euro Stoxx 50 SM and global market equities portfolios Interesting emerging market underlying for core-satellite asset allocations 1) annualized 02/02/ /12/ Source: Deutsche Börse, Bloomberg

18 DAXglobal BRIC offers higher return with lower risk compared to individual BRIC Blue-Chip indices Comparison of return and volatility Risk/Return Matrix 1) Return [Avg annual performance] 19% 14% 9% 4% -1% MSCI Emerging Markets Euro Stoxx 50 Index DAXglobal BRIC Index S&P BRIC 40 Index 22% 24% 26% 28% 30% 32% 34% DAXglobal BRIC shows attractive risk/return profile DAXglobal BRIC has the highest returns compared to other benchmarks DAXglobal BRIC shows attractive diversification potential for Euro Stoxx 50 SM and global equities portfolios Risk [Annual volatility] 1) Calculation based on historical simulation data from 02/02/ /12/2009 DAXglobal Russia Index 05/ Source: Deutsche Börse, Bloomberg

19 D. Master Data

20 DAXglobal BRIC Index is available in three currencies Master Data Index ISIN WKN Reuters RIC BB Ticker DAXglobal BRIC Index [EUR] DAXglobal BRIC Index (Price) (EUR) DAXglobal BRIC Index (Performance) (EUR) DE000A0C4CK9 DE000A0C4CJ1 A0C4CK A0C4CJ.DAXBRICP.DAXBRIC D1A1 D1AZ DAXglobal BRIC [USD] DAXglobal BRIC Index (Price) (USD) DAXglobal BRIC Index (Performance) (USD) DE000A0C4CP8 DE000A0C4CN3 A0C4CP A0C4CN.DAXBRICUSP.DAXBRICUS D1A5 D1A4 DAXglobal BRIC [GBP] DAXglobal BRIC Index (Price) (GBP) DAXglobal BRIC Index (Performance) (GBP) DE000A0C4CR4 DE000A0C4CQ6 A0C4CR A0C4CQ.DAXBRICGBP.DAXBRICGB D1A7 D1A6 20

21 Where to get further information Deutsche Börse Issuer Data & Analytics, 14 May Factsheet Weighting + Related Values Constituents / History / Performance DAXglobal Russia Index 05/

22 Track record in innovation Deutsche Börse Issuer Data & Analytics, 14 May

23 Konrad Sippel (Head of Unit) Issuer Data & Analytics Deutsche Börse Issuer Data & Analytics, 14 May 2010 Marco Bernhard (Sales & Marketing) Issuer Data & Analytics Disclaimer DAXglobal Asia, DAXglobal BRIC, DAXglobal Russia, DBIX Deutsche Börse India Index (hereinafter the "Indices" and each an "Index") are registered trademarks of Deutsche Börse AG. Neither the publication and dissemination of the Indices nor the granting of a license regarding an Index for the utilization in connection with the issuance of a financial instrument by a third party represents a recommendation by Deutsche Börse AG for a capital investment or contains in any manner a warranty, opinion or statement by Deutsche Börse AG with respect to the attractiveness of an Index or an investment in such a financial instrument. Deutsche Börse AG does not give any explicit or implicit warranty or representation, neither regarding the Index, the Index value at a certain point in time or on a certain date, the results deriving from the use of an Index nor in any other respect. To the extent permitted under law Deutsche Börse AG will not be liable vis-à-vis third parties for potential errors in an Index. Nothing shall oblige Deutsche Börse AG vis-à-vis its licensors or any other third parties, including investors, to point out potential errors in an Index. The use of the indices for financial products requires a license. The financial instrument issued on the basis of an Index is neither sponsored nor promoted, distributed or in any other manner supported by Deutsche Börse AG. Permission to reprint or distribute any content from this presentation requires the prior written approval from Deutsche Börse AG. 23