Index provider S&P Dow Jones Indices and New Zealand's Exchange (NZX) have launched two benchmarks to gauge the performance of companies whose revenues from within and outside New Zealand are higher than average.
The new S&P/NZX 50 New Zealand Revenue Exposure Index tracks the performance of companies in the S&P/NZX 50 that have higher-than-average domestic revenues.
Similarly, the S&P/NZX 50 Foreign Revenue Exposure Index measures the performance of companies with higher-than-average foreign revenues.
The two benchmarks are part of the S&P Global Revenue Exposure Index Series.
According to Michael Orzano, senior director of global equity indices at S&P Dow Jones Indices, the benchmarks will help give investors “meaningful insight” into the New Zealand stock market.
"By tracking companies with domestic business activities and those with significant international footprints, market participants are able to measure and help manage regional risks and make better informed investment decisions,” Mr. Orzano says in a statement on June 4.
NZX Chief Executive Officer Mark Peterson adds that there is growing demand for “innovative index-based solutions”.
"New Zealand investors continue to seek ways to gain exposures to certain countries and regions while anticipating and navigating potential domestic and global risks. We are pleased to be able to help New Zealand and global investors better protect their portfolios and meet their investment goals,” he says.