The Nigerian Stock Exchange and Meristem Securities Limited have partnered to launch two new style indices, namely NSE-Meristem Growth Index and NSE-Meristem Value Index.
The NSE, in a statement on Monday, said the indices would be available real time on its website from March 12, 2019 (today).
It said the style indices were designed in response to demand for customised indices to support product development and investment management.
According to the statement, the style indices will provide a benchmark for the market to gauge the performance of value stocks and growth stocks listed on the Exchange.
The Divisional Head, Trading Business, NSE, Mr Jude Chiemeka, said, “We are pleased to collaborate with Meristem Securities in the development of the first style-focused indices to be publicly launched in Nigeria.
“The introduction of the NSE-Meristem Growth and NSE-Meristem Value indices is a laudable and innovative effort, which is long overdue. These indices provide products strategists and asset managers the leverage to create investment vehicles that democratise professional asset management for the benefit of investors while still following the tenets of classic investment philosophies ― growth and value.”
Chiemeka stated that the indices were available for licensing and urged the investing public to take advantage of the benefits the indices provide.
The Group Head, Investment Research, Meristem Securities, Mrs Kemi Akinde, described the indices as benchmarks to track the performance of growth and value stocks that were traded on the floor of the Nigerian Stock Exchange.
She said the indices would contribute to the deepening of the stock market by providing leverage for fund managers to build investment products.
Akinde added that the indices would serve as more appropriate benchmarks for fund managers with same investment philosophies, help in effective performance attribution and facilitate better manager selection and appraisal, while also providing market data for academics to enrich studies on the performance of growth and value stocks in the Nigerian market.
The NSE said the indices, as with all others, would align with the index committee’s governance standards.
