The EMIX Europe Index Series is a new benchmark index series from Euromoney Indices designed to address investors' needs to diversify into smaller European companies. The EMIX Europe Index captures over 90% of Europe's market capitalization by combining large, liquid mid, and small-cap stocks from 16 European countries. It includes 647 constituent companies with a total market capitalization of over €8 trillion. The index aims to provide investors with better access to growth opportunities across Europe through a more complete market representation that incorporates smaller companies, while maintaining liquidity.
3. The EMIX Europe constituents at a glance
Introducing EMIX Europe
TheEMIXEuropeIndexSeriesisanewbenchmarkseriesfromEuromoney Indices
designedtoaddressinvestmentmanagers’ needsto diversify into smallercompanies
inordertoaccessattractivegrowthopportunitiesacrossthecontinent.
Bycombininglargecapsandinvestiblemidandsmallcaps, EMIXEuropecaptures90%
ofEurope’smarketcapitalisation,andbringsto theindustry auniquethreedimensional
approachtoindexing:
• A unique index construction methodology comprising a mix of large and liquid mid
and small sized caps
• A commitment to delivering better value for money, with a transparent and clear
pricing structure
• A barrier-free licence, giving greater flexibility to use the indexes with no additional fees
Companiesintheindexseries
647
*
Revenues
€9.7 trillion**
Countriescovered
16
Profits
€591 billion**
Marketcapitalisation
€8.0 trillion*
Tax paid
€285 billion**
Employees
27 million**
Data history available
back to 2006
* Asat22September2014 **Basedonthelastfinancialyearavailable
4. Defining the EMIX Europe liquid universe
AllEuromoneyindices arederivedfromtheEMIXLiquidUniverse.Thisuniversecovers99.95%oftheworld’s
marketcapitalisation,screenedforfreefloat,foreigninvestorlimitsandliquidity.Themostliquidlineofeach
companyis includedintheuniversewhichinmostcaseswillbetheprimarylisting,butliquiddepositaryreceipts
arealso includedwheretheunderlyingstockisunlistedorunavailabletoforeigninvestors.
Combining the elements to create EMIX Europe
Large caps together with liquid mid and small caps
Thelargecapstocks fromEurope(exUK)andfromtheUKareincludedinEMIXEuropeandarecombined
withthelargestEuropemidandsmallcapstocks,ensuringthat35%oftheEuromoneySmallerEuropean
Companies Indexis capturedandthateachselectedstocksatisfiestheminimumliquidityrequirement.
Establishing a minimum ADTVrequirement
By employingastrictminimumaveragedailytradedvalue(ADTV)filter,EuromoneyIndicesensuresthat35%of
theEuropemidandsmallcaps arerepresentedwithoutreducingtheoverallliquidity.Thisisachievedbysetting
theminimumliquidityrequirementformidandsmallcapsattheleveloftheleastliquidlargecapconstituent.
ThelargecapEuropestocks andthemostliquid35%oftheEuropemidandsmallcapstocksarerepresented
intheEMIX EuropeIndex,themainindexintheseries.Theindexisrebalancedeveryquarter,withamajor
rebalancetakingplaceinSeptemberwhenthemonthlyADTVofeverylargecapconstituentoftheindexis
establishedforthepreceding12months,andeachindividualobservationisrankedbytradedvaluewiththe
bottom1percentbeingdiscardedas outliers.The99thpercentileofADTVobservationsisthentakenasa
measureofthelowestacceptablelevelofliquidityforaconstituentoftheEMIXEuropeIndex.Thisisknown
astheMinimumADTVRequirement,andallpotentiallarge,midandsmallcapconstituentsmustfulfilthis
requirementtoentertheindex.
The EMIX Europe Index constituents in summary
• 350 largecapEurope(exUK)stocks
• Circa120largeUKstocks withamarketcapitalisationequaltoorabovethesmallest
largecapEurope(exUK)stock
• Circa 170Europemidandsmallcapstocksthat
- meettheMinimumADTVRequirement
- capture35%ofthecapitalisationoftheEuromoneySmallerEuropeanCompaniesIndex
Building the structure of EMIX Europe
Europe (ex UK) large caps
• Companies fromtheliquiduniversethatare
domiciledinEurope(exUK)arerankedin
descendingorderofmarketcapitalisation
• 350 stocks captureatleast85%ofthetotal
investibleEuropeanequitymarkethistorically
• The350largeststocks bymarketcapareselected
aslargecapconstituents oftheEMIX Europe Index
Europe (ex UK) mid and small caps
• Thenext1000companies(rankedbymarket
capitalisation)fromtheliquiduniversethatare
domiciledinEurope(exUK)areextractedtoform
constituentsoftheEuromoney Smaller European
Companies (ex UK) Index
UK large caps
• Companies fromtheliquiduniversethatare
domiciledintheUKarerankedindescendingorder
ofmarketcapitalisation
• Thecompanywhosemarketcapitalisationmatches
the 350thEurope(exUK)companybecomesthe
cut-offpointforlargecapinclusion
• AllUKcompanies withamarketcapabovethiscut
offpointaredefinedas UKlargecaps
• Circa120UKlargecapstocks enterthe
EMIX Europe Index
UK mid and small caps
• Thenext350companies(rankedbymarket
capitalisation)fromtheliquiduniversethatare
domiciledtheUKareextractedtoformconstituents
oftheEuromoney Smaller UK Companies Index
5. EMIX Europe
Market weightings
No. of Market Cap Weight Yield
Market companies (EUR bn) % %
Austria 10 34.7 0.4 2.5
Belgium 14 156.9 2.0 2.5
Denmark 20 201.0 2.5 1.6
Finland 16 103.1 1.3 3.5
France 91 1,213.1 15.2 3.1
Germany 75 1,079.9 13.6 2.7
Greece 7 31.8 0.4 0.2
Ireland 8 55.8 0.7 1.4
Italy 44 336.3 4.2 2.5
Netherlands 30 322.1 4.0 2.3
Norway 15 115.5 1.4 4.3
Portugal 8 28.6 0.4 2.7
Spain 38 440.3 5.5 4.6
Sweden 42 375.5 4.7 3.4
Switzerland 50 1,034.4 13.0 2.9
UK 179 2,440.1 30.6 3.8
Total 647 7,969.2 100.0 3.2
Industry group weightings
No. of Market Cap Weight Yield
Industry group companies (EUR bn) % %
Natural resources 36 838.9 10.5 4.6
Basic materials 70 555.4 7.0 2.7
Industrial goods 71 734.2 9.2 2.7
Technology 31 302.8 3.8 1.8
Consumer goods 91 2,091.2 26.2 2.8
Business providers 150 1,282.4 16.1 3.8
Retail providers 46 306.8 3.9 3.0
Financial 152 1,857.6 23.3 3.3
Total 647 7,969.2 100.0 3.2
All data as at close 22 September 2014.
Index performance since inception
Liquid universe (distribution by size and traded value)
Market cap (EUR)
ADTV(EUR)
10k
100k
1000bn100bn10bn1bn100m10m
1m
10m
100m
1000m
EMIX Europe (large cap)
Minimum turnover ratio
Non EMIX Europe (large cap)
EMIX Europe (mid and small cap)
Minimum Market Cap Upper Buffer
Minimum Market Cap Lower Buffer
Euromoney Smaller European Companies
Minimum ATDVUpper Buffer
Minimum ATDVLower Buffer
Dec06 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13Jun07 Jun14Dec08 Dec09 Dec10 Dec11 Dec12 Dec13Dec07
25
0
50
100
130
–GrossTotal Return
–NetTotal Return
–Price Return
6. Committing to better value for money and transparent pricing
EMIXEurope’s fullytransparentflatrateincludestheabilitytousetheindexnameanddatainallmarketing
materials,anywhereintheworld,bothinprintandonline.Thefeeincludesfullycomprehensivedataservices
asstandard,includingdailyconstituentfiles,dailydivisorandtraderfilesandafivedayforwardlooking
corporate actions calendar.
• Singlesitelicence-£28,500
• Countrylicence-£32,000
• Continentlicence-£35,000
• 2Continentlicence-£50,000
• Globallicence-£60,000
What’s included?
• Daily Constituents
• Allregion,country,currencyandreturnindices
• Useofindices forin-houseblendedindices
• Useofindices forfundpublications
• Performancelicenceincluded
• Custodianlicenceincluded
• EMICSclassificationlicenceincluded
• IndexValues sinceinception
• Daily corporateactions file
For more information:
Scott Thomson
Phone: 01312209090
Email: scott.thomson@euromoneyplc.com
Sui Chung
Phone: 02077798647
Email: schung@euromoney.com
Euromoney Indices
HobartHouse,
80 HanoverStreet,
Edinburgh EH21EL,UK
To viewthefulllistofindices withintheEMIXEuropeIndexSeriesseeBloomberg,
ThomsonReuters orvisiteuromoneyindices.com