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New Index Launched For Vontobel Certficates That Track Big Hitters Of Social Media

Tom Burroughes, Group Editor, London, 3 October 2014

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A new index has been launched tracking major social media corporations such as Facebook or Twitter and will be the underlying reference for Vontobel-provided investment certificates available in Germany and Switzerland.

A new index has been launched tracking major social media corporations such as Facebook or Twitter and will be the underlying reference for Vontobel-provided investment certificates available in Germany and Switzerland.

The certificates will be available in euros and Swiss francs. The index is being composed by Solactive; it is called the Solactive Social Media Titans Performance Index.

This index is the fourth one developed and calculated by Solactive around the theme of Social Media. All indices are based on the same starting universe of companies driving most of their revenues from social media (social networking, file sharing or other web-based media applications.)

To be included in the Solactive Social Media Titans Performance Index, stocks must pass two liquidity screens: a market capitalization of more than €750 million ($948.3 million) and a three-month average daily traded value of more than €1 million. The index is then composed of the 10 largest stocks by market capitalization. All components are equal weighted, so each stock has a weight of 10 per cent.

“The Index is a transparent and strongly rule-based underlying reference that provides a cost-efficient market access to the world’s biggest and most established social media companies. One transaction allows access to a bundle of social media titans without single stock cluster risk,” Heiko Geiger, head of public distribution for Germany and Austria, Vontobel, said.

As at 1 October, the 10 components in the index are Twitter; Google; Tencent; Facebook; Linkedin; Netease; Yandex; Pandora Media, Mixi and Yelp.

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