Dow Jones Indexes has launched the Dow Jones UK Smaller Companies Index, which provides market participants with a measure of the UK’s small and micro cap segments.
Dow Jones Indexes has launched the Dow Jones UK Smaller Companies Index, which provides market participants with a measure of the UK’s small and micro cap segments.
The index currently includes 188 stocks from the London Stock Exchange, including those traded on the Alternative Investment Market.
The index is designed to provide a complete view of the UK small and micro cap segment and will serve Dow Jones Newswires as a benchmark for its extended UK small cap coverage.
"The Dow Jones UK Smaller Companies Index was created as a result of the demand for a single go-to instrument to measure the performance of the broad UK small and micro cap market," says Michael A. Petronella, president, Dow Jones Indexes. "The inclusion of stocks traded on the Aim makes this index a unique benchmark and will provide Dow Jones Newswires and market participants with a more accurate tool to analyse and evaluate the UK small and micro cap segment."
Dow Jones Newswires has been expanding its coverage of smaller UK companies and plans to use the new index as a reference.
The index universe for the Dow Jones UK Smaller Companies Index consists of all equity issue stocks, Reits or similar securities with readily available prices that trade in the UK, including those listed on the Aim. To be included in the index, stocks must fall between the 97 per cent and 99 per cent of cumulated free-float market capitalization of the index universe. A buffer rule avoids major turnover in the index, excluding only components which fall either below the 96 per cent quantile or above the 99.25 per cent quantile during the regular review.
The index is available in price and total return versions, and is reviewed quarterly in March, June, September and December. The index is also examined on an ongoing basis to account for corporate actions such as mergers, de-listings or bankruptcies.
It is calculated in pounds sterling and US dollars, and is weighted by float-adjusted market capitalization. Daily historical index values are available back to 30 June 2006, with the base value of the index being set at 1,000.
