German index provider Solactive has announced the launch of a new Solactive UK Domestic Index, tracking the performance of listed UK companies whose revenues are primarily generated in the UK.
The new index aims to enable investors to focus on a basket of companies which are less dependent on international revenues, a sector which is currently underrepresented in UK stock market indices, according to Solactive.
According to the index provider, the top 20 companies by market cap listed on the London Stock Exchange have an average UK-based revenue of 18%, with only one company generating all of its income in the UK and approximately a third of them generating less than 5% of the revenues domestically.
The index, which is adjusted semi-annually is calculated in GBP and is based on 100 index points at the close of trading on 17th December 2010.
Henning Kahre, head of Research at Solactive comments: “London is one of the most important financial centers in the world and a listing on the LSE is therefore an attractive gateway to capital markets. That is especially true for international companies in the energy & mining space that are most often not UK companies in a traditional sense but that are still included in UK benchmarks due to listing. The new Solactive Index on the contrary provides investors with true exposure to the UK economy.”