Cookies on the Investment International website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.
Continue

New to Investment International?

Welcome, and thank you for visiting our website.

Investment International is the leading publication for investors interested in the world of international investment.

Our aim is to give you intelligent commentary on the most important financial stories, and help you to profit from them. If you've enjoyed what you've read so far why not sign up for our FREE investment alert.

Every week the Investment International team sends out a hard-hitting newsletter packed with news and analysis of the top stories this week plus the best investment opportunities on the market. We always look at the bigger picture like the Eurozone Crisis, and explain how this will affect YOUR investments.


Ask me later
No thanks

S&P launches world’s first index for preferred stock on European and Asian markets PDF Print E-mail
News - Shares
Tuesday, 24 August 2010 10:28

The first index dedicated to providing investors with exposure to preferred stock in developed European and Asian markets, has been announced.

 
Standard & Poor’s International Preferred Stock Index has been launched in response to demand for an investable benchmark of non US developer market preferred stocks and the high yields and diversifications that they can provide.
 
S&P, the world’s leading index provider, said the move creates first benchmark for international preference shares and follows last week’s launch of the S&P/TSX North American Preferred Stock Index, dedicated to North American preferred stocks.
 
Preferred stocks, or preference share, are a class of securities that combine the characteristics of debt and common stocks. While their expected volatility and returns fall between those of common stocks and bonds, their yields are typically higher than those of common stocks, bonds and money market instruments. With relatively low correlations to common stocks and bonds, they can serve as a good diversification instrument for investors.
 
‘Market conditions make this index, the first of its type, ideal for investors who are searching for higher yields at a time of historically low interest rates worldwide. The S&P International Preferred Stock Index will open up new avenues to access this increasingly sought after area of the market in Europe and Asia,’ said Steve Goldin, vice president of Strategy Indices at S&P Indices.
 
The S&P International Preferred Stock Index’s universe focuses on developed market preferred stocks that are traded on non US developed market exchanges. Emerging market issues and listings are excluded. Any preferred stock issued by a company to meet its capital financing requirements, such as floating and fixed rate preferreds, cumulative and non-cumulative preferreds, and preferred stocks with a callable or conversion feature, are also eligible for inclusion.
 
The Index is based on a modified market capitalisation weighting scheme. In order to improve liquidity, modifications are made to the index’s shares in order to prevent single issuer concentration. Rebalancing will be undertaken on a quarterly basis.
 

Most Read

Latest Guides

New Build UK Student Investment
New Build UK Student Investment
Download

UK Airport Car Park Investment
UK Airport Car Park Investment
Download

UK Airport Car Park Investment
Hever Hotel
Download

Holiday Home Rental Guide
Holiday Home Rental
Download

Investing in Buy-to-let
Investing in buy-to-let
Download

Investing in buy-to-let
Investing in buy-to-let
Download

Discover the real power behind your pension
Hever Hotel
Download

Self Invested Personal Pension Guide for UK Expatriates
key
Download

Offshore Banking Guide
Offshore banking Guide 2010-2011
Download
Pension Planning Guide
International Pension Planning Guide 2010-2011
Download
Eurozone Crisis
Eurozone Crisis Report 2010-2011
Download
Tax Guide
International Tax Guide 2010-2011
Download
Follow us on Twitter
Find us on Facebook