NEW YORK and LIMA, Peru, Dec. 16, 2014 /PRNewswire/ -- Continuing its strategic expansion throughout Latin America, S&P Dow Jones Indices ("S&P DJI") signed an agreement in Peru today with the Bolsa de Valores de Lima ("BVL") to license, distribute, and govern all of the BVL indices including a new version of their flagship index, IGBVL (Indice General de la Bolsa de Valores de Lima). The signing, as well as a bell ringing commemorating the event, took place at the Bolsa de Valores de Lima.
S&P DJI and BVL also announced today the launch of the S&P/BVL Peru Select Index, the first index to result from the newly signed agreement. The S&P/BVL Peru Select Index is designed to measure the performance of the largest and most liquid stocks listed on the Bolsa de Valores de Lima. The Index uses a modified market capitalization weighting scheme, providing investors with abroad, representative, and easily replicable index covering the Peruvian equity market. The S&P/BVL Peru Select Index includes 19 securities from different sectors like Consumer Staples, Financials, Materials, Utilities, Industrials and Energy. No sector has more than 40% of participation in the Index.
"The BVL has been a beacon of innovation within the Peruvian financial markets for over 156 years," says Alex Matturri, CEO of S&P Dow Jones Indices. "Its strong leadership and ability to continuously meet the growing needs of Peruvian investors make it the ideal exchange partner for S&P Dow Jones Indices as we bring greater index-based solutions, research, and analysis to the financial markets of Latin America."
"This new index will generate greater global exposure to the most important companies of the Peruvian market and the market in general," says Christian Laub, Chairman of the BVL. "S&P Dow Jones Indices is one of the leaders in distributing information and global indexes. The Lima Stock Exchange is playing a more important role in LATAM and internationally. As a result, this partnership helps us meet the changing needs of investors and become the main gateway for capital in the region."
As announced previously, S&P DJI will be responsible for the marketing and commercial licensing of the BVL indices. The agreement also allows S&P DJI to eventually calculate all of the BVL indices, and to jointly create new indices with the Exchange to meet the evolving needs of investors inside and out of Peru. Each of these indices will be designed with an eye toward being liquid enough to serve as the basis for potential investment products.
Both parties also announced today that two BVL indices, IGBVL and ISBVL, will be renamed S&P/BVL Peru General Index and S&P/BVL Lima 25 Index effective January 2015. The methodology for calculating and publishing both indices will also be updated effective the same date, and as a result, they will not be rebalance at the end of this year. Also the S&P/BVL Peru General Index is being converted to a market capitalization weighting scheme.
About S&P Dow Jones Indices
S&P Dow Jones Indices LLC, a part of McGraw Hill Financial, is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average™, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of investors. More assets are invested in products based upon our indices than any other provider in the world. With over 1,000,000 indices covering a wide range of asset classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com.
S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("S&P"), a part of McGraw Hill Financial. Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (collectively "S&P Dow Jones Indices") do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties.
About the BVL
The Bolsa de Valores de Lima, limited company with more than 156 years in the Peruvian financial market and more than 260 issuing companies, have the main purpose of facilitate the purchase and sale of securities, giving investors and issuers, services, systems and mechanisms for fair, competitive, orderly, continuous and transparent negotiations, all under the supervision of the SMV.
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SOURCE S&P Dow Jones Indices