S&P Dow Jones Indices has launched the S&P Business Development Company (BDC) Index and licensed it to Nikko Asset Management to launch a tracker fund in Japan.
The index is comprised of US-listed private equity firms that invest equity and debt capital in small and mid-sized businesses, allowing investors to measure a growing industry specialty within the financial sector.
Drawn from the S&P United States BMI universe, the S&P BDC Index is modified float-adjusted market cap-weighted. Modifications are made to market cap weights, if required, to reflect available float, while applying a single stock cap of 10 per cent to mitigate over-concentration in a few components. To qualify for membership in this Index, a stock must be a publicly traded company with a Business Development Company structure, as specified in SEC filings, and listed on the NYSE (including NYSE Arca), the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq Select Market or the Nasdaq Capital Market.
"Japanese investors are increasingly looking for investment solutions that allow them to execute their view on specific markets and sectors with precision," says Philip Murphy, vice president of US equities product management at S&P Dow Jones Indices. "We are very excited to license our S&P BDC Index to Nikko Asset Management. The agreement demonstrates our commitment to support greater index choices for Japanese investors."
