S&P Dow Jones Indices have announced that, as part of its strategic growth plan to expand throughout Latin America, it has signed a landmark agreement with the Bolsa de Valores de Lima (BVL) to license, distribute, and govern all of the BVL indices including a new version of their flagship index, IGBVL (Indice General de la Bolsa de Valores de Lima).
S&P DJI will be responsible for the marketing and commercial licensing of the BVL indices. The agreement also allows S&P DJI to eventually calculate all of the BVL indices, and to jointly create new indices with the Exchange to meet the evolving needs of investors inside and out of Peru.
Each of these indices will be designed with an eye toward being liquid enough to serve as the basis for potential investment products.
“Interest in passive investing through index-based investment products is just beginning to take shape in Latin America,” says Alex Matturri, CEO of S&P Dow Jones Indices. “With more ETF assets based upon our indices than any other index provider in the world, S&P Dow Jones Indices is in a unique position to help facilitate the growth of index-based investing in Peru by offering a deeper and more prolific lineup of benchmarks to its investors.
By aligning with one of the premier exchanges in Latin America, the Bolsa de Valores de Lima, international and domestic investors will have the tools necessary to measure and potentially access opportunities in Peru, a country which has witnessed the fastest economic growth in South America over the past decade.”
Francis Stenning, CEO of the Lima Stock Exchange said: “This strategic alliance of S&P DJI with the Lima Stock Exchange will generate greater worldwide exposure of our stock market. In addition to measuring Peruvian market behavior, this agreement should make the BVL a source of international investment.”
He also noted that a new blue chip index will be created for the local market, which shall include leading companies in terms of capitalization and liquidity.
According to the agreement, the BVL will transition index calculation of its indices to S&P DJI over time to ensure a smooth transition for existing clients. S&P DJI will be responsible for the commercial licensing of the indices, as well as the end-of-day data. In addition, all BVL indices will be co-branded “S&P”.
This article has previously appeared on Funds Society.