The new analytic product by IFC METROPOL – a bonds index of the electric energy industry companies
The investment and finance company METROPOL has developed a
bonds index of the electric energy industry companies. The
indicator reflects the dynamics of price, profitability and
duration of bonds issued by the companies operating in the electric
energy industry allowed for circulation at the Moscow inter-bank
currency exchange.
The mission of the new analytical product is to emerge as an
industry control index that would allow tracking the performance of
managing assets and investment portfolios.
Generally already existing bonds indices are not industry-related
and incorporate a large number of different types of bonds. “Such
indicators must not be used as control indicators for an objective
evaluation of investment management as they do not reflect a
certain industrial sector’s specifics”, - believes Arthur Plaude,
Managing director of IFC METROPOL’s debt instruments and
derivatives department.
“Being a market maker at the electric energy industry bonds
market, we always know precisely the real market situation and show
it through our index. Having a clear industry orientation, the
METROPOL index gives investors and anybody else interested a chance
to see both the general trend and the short-term market
fluctuations; it allows estimating the effectiveness of investing
in a specific industry and building future projections”, -
underscores Pyotr Kadysh, head of IFC METROPOL’s debt instruments
and derivatives analytical directorate.
The new indicator is developed in accordance with the
recommendations given by the CFA Institute and fully meets
international standards for building stock indices complying with
such crucial criteria as the possibility of replication with no
active management, the possibility to estimate the value of bonds
on a permanent basis and the opportunity to determine the weight of
company’s bonds comprising such weight and so on.
The current composition of the Index (100%) includes the
following companies and issues of bonds: FSK 7 series (34,9%),
RusHydro 1 series (28,9%), Mosenergo 2 series (8,2%), OGK-5 1
series (9,2%), TGK-1 01 series (5,0%), MOESK 1 series (4,9%), OGK-6
1 series (2,9%), TGK-9 1 series (2,5%), TGK-6 1 series (2,0%),
Lenenegro 2 series (1,7%), TGK-5 1 series (1,5%), TGK-2 1 series
(0,8%), MRSK-South 2 series (0,5%).
The specific weight of the companies is calculated based on their
market capitalization as of the beginning of March 2011 and it is
used for a retrospective building of the indicator.
The index base revision interval is every six months.
The indicator is presented in four categories:
• aggregate income index;
• price index;
• yield index for payment (for put/call options);
• duration index.
The index incorporates several time intervals. Within each
interval the composition of the indicator is rebalanced by
inclusion of new issues of bonds.
In case the decrease of duration for calculating the baseline index
is less than one year and a half, the indicator can be balanced by
replacing its incoming bonds by new issues without changing the
emitting company.
Company overview: The investment and finance company METROPOL was
founded in 1995. It conducts brokerage, renders services of
facilitating transactions related to reorganization, buying and
selling, crisis management of companies, procurement of debt and
registered capital, assets realization as well as financial and
corporate consulting. The company has extensive experience of
public (IPO, SPO) and private security offering. The National
Rating Agency has awarded IFC METROPOL the AAA individual
reliability rating (which corresponds to the maximal reliability
possible).
The Group includes six battery plants and business units developing and introducing new technologies, and distributing products.
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