FTSE NSE Launch Event Presentation - D Keith


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FTSE NSE Launch Event Presentation - D Keith

  1. 1. FTSE NSE Kenya IndexSeries
  2. 2. About FTSE
  3. 3. Introducing FTSEFounded in 1995 as a joint venture between the London Stock Exchange and theFinancial Times, FTSE is an award winning global leader in the creation andmanagement of index solutions2011 European Pensions Best Index Provider2010 Global Pensions Index Provider of the Year2010 Structured Products ETF Index Provider of the Year, Asia2010 Asian Investor Best Provider of Tradable Indices, APACWe calculate over 150,000 indices covering all major asset classes: Global Equity Regional & Partner Fixed Income Real Estate Commodities Responsible Investment Investment Strategy Currency Infrastructure Custom Page 2
  4. 4. Our Core Elements• Evolved rapidly from a UK start-up to be • Award winning innovator in index an established global business technology• FTSE serves clients in 77 countries • Record of collaboration• We partner with over 20 exchanges worldwide • Broadening asset class coverage• Some 400+ investment managers rely on • FTSE’s comprehensive ICB sector FTSE indices, with approximately US $3 classification system is used to trillion benchmarked to FTSE indices classify most of the world’s equity investments (75,000 securities) Global Thought Business Leadership Service Strong Orientated Growth• Calculates over 150,000 • Winning market share stock market indices daily, including over 800 real-time indices • Rapid growth since inception• Responsive to client needs• Complete, integrated product range • Growing fast in North America• Strong customer service• Local contact points • There are 170 ETFs based on FTSE• Value-driven pricing indices, with c. US $55bn invested Page 3
  5. 5. Leading Index Innovation ….2000 2011 FTSE extends the FTSE launches FTSE extends ICB is launched, global universe to FTSE Asiatop the global adding an additional FTSE adds Frontier markets FTSE acquiresExpanding Equity 90% with the and universe to layer of classification to further extend full ownership of addition of Asian 98% with the – Industries, Market Access Emerging markets the global universe ICB Sectors launch of Supersectors, to create the GEIS Sectors, Subsectors FTSE All-World Opening Up Markets With Exchange Partnerships 2002 2004 2005 2006 2007 2009 2011 New Passive FTSE FTSE Macquarie FTSE UK FTSE IDFC FTSE FTSE Physical Global EPRA/NAREIT Global Commercial India Currency Industrial Investment Bonds Global Real Estate Infrastructure & Property Infrastructure FRB Index Metals Index Opportunities FTSE Private Index Series Series Banking 2002 2003 2004 2005 2006 2008 2009 2010 2011Alternative Equity FTSE FTSE FTSE ISS FTSE RAFI Islamic Environmental FTSE Short & FTSE EDHEC FTSE TOBAM Global Global Corporate & FTSE Index Technology Leveraged FTSE Active Market Access Style Small Cap Governance GWA Partnership Beta Page 4 Indices Indices with Yasaar
  6. 6. A World of Exchange Partnerships FTSE ASEAN Index Series Page 5
  7. 7. Africa & Kenya
  8. 8. Why Africa?• Positioned for Growth • Second largest continent, second largest continental population • Huge pool of human capital – nearly 1 Billion people • Resource rich – oil, metals, minerals & agriculture • Africa’s GDP c.$3 Trillion, with 2011 growth estimated at 5.5 - 6% (IMF) • Significant investment in infrastructure across the continent • Investor interest in diversifying outside of developed markets is increasing rapidly Africa India GDP $US Trillion Russia 2010 (IMF) Brazil 0 0.5 1 1.5 2 2.5 3 3.5 Page 7
  9. 9. Our Commitment• FTSE’s investment in Africa• FTSE has been committed to working with the African market for close to a decade• As financial markets mature and become increasingly sophisticated, broader ranges of investment tools and services are in demand• We believe we are the index provider of choice for the African market due to our long track record and experience of working across the continent to create investment tools and opportunities for African markets Page 8
  10. 10. Why Kenya?
  11. 11. Why Kenya?“Kenya is at the threshold of a major demographic transition and rapidurbanization…each year, Kenya will continue to grow by more than onemillion people to reach 63 million in 2030, who will live longer, be bettereducated, and increasingly live in cities.”World Bank Economic Update, June 2011“There is a strong correlationbetween urbanization and growth”(IMF) Page 10
  12. 12. Why Kenya?“Kenyan growth predicated on improvements in road and energyinfrastructure, the business climate & productivity”IMF Sustainability Analysis, 2011Kenya is committed to growing competitiveness and prosperity viathe 2030 Vision programme 2010 Growth %, IMF 6 5 4 3 2 1 0 Kenya Japan USA UK Page 11
  13. 13. Why Kenya? “Kenya remains at low risk of external debt distress” IMF Sustainability Analysis, 2011 Debt : GDP 160 140 120 100 80 60 40 20 0 Kenya USA UK France Greece 2010 figures, IMF, Eurostat Page 12
  14. 14. FTSE NSE Kenya Index Series
  15. 15. The FTSE NSE Kenya Index Series Index Calculation Securities Pricing FTSE NSE Kenya 25 Index FTSE NSE Kenya 15 Index Tradable Index Tradable Index 25 Liquid stocks trading on NSE Top 15 listings on NSE by full Market Cap. Real-time and End of Day Calculation Real-time and End of Day Calculation KES and USD KES and USD Page 14
  16. 16. Performance 200 Index Level Rebased (30 Sep 2008 = 100) 180 160 140 120 100 80 60 40 FTSE NSE Kenya 15 Index FTSE Frontiers 50 Index Page 15
  17. 17. Partnership BenefitsBenefit FTSE NSE Kenya Index SeriesLeverage world class index design, governance and managementConsistent and transparent index methodologiesIndependent index calculation and disseminationAccess to FTSE’s global distribution networkCreates international visibility for the local market Page 16
  18. 18. Contact DetailsDonald Keith Jonathan CooperDeputy Chief Executive Managing DirectorFTSE Group FTSE Group+44 (0) 207 866 1865 +971 4 319 9901Donald.Keith@ftse.com Jonathan.Cooper@ftse.com www.ftse.com/kenya Page 17