- KBW Nasdaq Global Bank Index (GBKX) is the first and only index designed to track the performance of global systematically important banks
- GBKX is the first joint index launched since the companies announced their partnership in April
NEW YORK, July 13, 2015 (GLOBE NEWSWIRE) -- Keefe Bruyette & Woods (KBW), a Stifel company (NYSE:SF), and Nasdaq (NASDAQ:NDAQ) today announced the launch of the KBW Nasdaq Global Bank Index (Ticker: GBKX), the first and only index designed to track the performance of those banks designated as global systemically important (G-SIBs) by the Financial Stability Board and Basel Committee on Banking Supervision. The 28 banks included in the KBW Nasdaq Global Bank Index represent 45% of the global investable banking universe and account for approximately $3T in total market cap.
"Global banks trade together, significantly different than their domestic peers and until now, there hasn't been an index available in the marketplace that exclusively tracks this specific universe," said Fred Cannon, Global Director of Research at KBW. "The GBKX is a substantial benchmark index, as our research shows G-SIBs trade at a lower valuation than domestic banks, even when adjusting for profitability. This is due to the unique global regulatory structure that G-SIBs operate under that exposes them to additional risks and capital requirements which domestic banks are not restricted by."
The 28 banks included in the KBW Nasdaq Global Bank Index are: Agricultural Bank of China Limited, Banco Bilbao Vizcaya Argentaria SA, Banco Santander SA, Bank of America Corporation, Bank of China Limited, Barclays Plc, BNP Paribas SA, Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG, HSBC Holdings Plc, Industrial and Commercial Bank of China Limited, ING Groep N.V., JPMorgan Chase & Co., Mitsubishi UFJ Financial Group, Inc., Mizuho Financial Group, Inc., Morgan Stanley, Nordea Bank AB, Royal Bank of Scotland Group Plc, Société Générale SA, Standard Chartered Plc, State Street Corporation, Sumitomo Mitsui Financial Group, Inc., Bank of New York Mellon Corporation, Goldman Sachs Group, Inc., UBS Group AG, UniCredit SpA and Wells Fargo & Company.
The KBW Nasdaq Global Bank Index is an equal-weighted index that has an average yield of 3.14% (as of 7/7/15). While a U.S.-dollar denominated index, it provides exposure to six different currencies – the U.S Dollar, Euro, British Pound, Japanese Yen, Swiss Franc and Swedish Krona. The Index will be rebalanced quarterly and members will be updated annually on the third Friday in December based on FSB and the Basel Committee's update to the list of G-SIBs published in November.
"The KBW Nasdaq Global Bank Index is an incredibly important benchmark for market participants who are interested in monitoring the health of international financial institutions," said Salil Donde, Executive Vice President, Nasdaq Global Information Services. "This is the first of many new and innovative products to be developed as a result of our strategic partnership with KBW."
In addition to the GBKX, there are also two total return versions of the Index that have been simultaneously launched – KBW Nasdaq Global Bank Total Return Index (GBKXT) and KBW Nasdaq Global Bank Net Total Return Index (GBKXN).
The KBW Nasdaq indexes are closely watched benchmarks and are widely cited in the media as barometers for the strength of the financial sector. The targeted sectors include banking, asset management, broker/dealer, insurance, equity REITs and mortgage finance. With the addition of today's index, the KBW Nasdaq index family now includes:
- KBW Nasdaq Global Bank Index (Ticker: GBKX)
- KBW Nasdaq Bank Index (Ticker: BKX)
- KBW Nasdaq Regional Banking Index (Ticker: KRX)
- KBW Nasdaq Capital Markets Index (Ticker: KSX)
- KBW Nasdaq Insurance Index (Ticker: KIX)
- KBW Nasdaq Property & Casualty Index (Ticker: KPX)
- KBW Nasdaq Premium Yield Eq. REIT Index (Ticker: KYX)
- KBW Nasdaq Financial Sector Dividend Yield Index (Ticker: KDX)
- KBW Nasdaq Global Financials (ex-U.S.) Index (Ticker: KGX)
- KBW Nasdaq Mortgage Finance Index (Ticker: MFX)
KBW LLC, a Stifel company, operates in the U.S. and Europe through its broker dealer subsidiaries, Keefe, Bruyette & Woods, Inc. and Stifel Nicolaus Europe Limited ("SNEL"), also trading as Keefe, Bruyette & Woods Europe ("KBW Europe"). Over the years, KBW has established itself as a leading independent authority in the banking, insurance, brokerage, asset management, mortgage banking and specialty finance sectors. Founded in 1962, the firm maintains industry-leading positions in the areas of research, corporate finance, mergers and acquisitions as well as sales and trading in equities securities of financial services companies.
About Nasdaq Global Information Services
Nasdaq Global Information Services (GIS) leverages reliable, scalable technology and robust distribution channels to provide comprehensive benchmarks and market data solutions across asset classes and regions. We equip financial institutions and investors with essential market transparency to make informed decisions. Our Global Data Products business provides innovative real-time and historical market data products, as well as analytic data solutions designed to meet new industry challenges. In addition, Nasdaq Global Indexes span geographies and asset classes to support financial product sponsors across a wide-spectrum of investable products and asset managers that measure risk and performance. Our diverse families include the Dividend Achievers, Global Equity, Fixed Income, Nordic, Green Economy and Commodity Indexes, based upon rules-based, transparent methodologies.
Nasdaq (Nasdaq:NDAQ) is a leading provider of trading, clearing, exchange technology, listing, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to more than 3,500 listed companies with a market value of approximately $9.5 trillion and more than 10,000 corporate clients. To learn more, visit: nasdaq.com/ambition or business.nasdaq.com.
The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular financial product or an overall investment strategy. Neither The NASDAQ OMX Group, Inc. nor any of its affiliates makes any recommendation to buy or sell any financial product or any representation about the financial condition of any company or fund. Statements regarding Nasdaq's proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
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CONTACT: KBW Media Contact: Neil Shapiro +1 (212) 754-5423 firstname.lastname@example.org Nasdaq Media Contact: Joe Christinat +1 (646) 441-5121 Joseph.Christinat@nasdaq.com
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