In a perfect marriage of German efficiency and French joie de vivre, Deutsche Borse has calculated a World Luxury Index for BNP Paribas to use as the basis of a new investment certificate. The index tracks the 20 largest stocks, in terms of market capitalization, from the luxury goods sector. The companies in the index must generate at least 50 percent of their total revenue from luxury goods.
Deutsche Borse says that, depending on the sector, a stock is considered to belong to a luxury goods manufacturer either by virtue of the brand or due to the minimum sale price. The companies in the index come from the high-end consumer goods sector, covering segments such as fashion, jewels and cars. No individual stock may account for more than 10 percent of the World Luxury Good index. The index is re-balanced by Deutsche Brse on an annual basis, while the stocks are weighted every quarter on the basis of the companies’ market capitalization and stock exchange trading volume.
The World Luxury Good index is the fifth customized index to be calculated by Deutsche Brse.