Tuesday, January 29, 2008

WNA's Nuclear Financial Index

The World Nuclear Association and S-Network LLC have created a world nuclear financial index expected to become available by March.

A new index of 66 leading global nuclear companies has been created by a partnership of the World Nuclear Association (WNA) and S-Network LLC. Pending regulatory approval, financial products based on the WNA Nuclear Energy Index could be available by March.

The WNA Index is meant to provide a benchmark for the relative financial success of the nuclear industry. It is comprised of 66 globally traded companies, which either are 'materially influenced by industry development' or 'principally engaged' in nuclear energy because they generate 50% or more of their revenue from nuclear-related activity.

...

Committee member Joseph LaCorte of S-Network said: "It is difficult to isolate and capture the economic opportunities embedded in the global growth of nuclear energy." However, through its broad base he considers that "the WNA Index comes as close as possible."

The index breaks down by the following industry sectors:
  • Reactor vendors: 15%; four companies
  • Construction: 15%; eight companies
  • Nuclear fuels: 20%; nine companies
  • Power generation: 25%; 15 companies
  • Technology, equipment and services: 25%; 30 companies
The 66 firms have a total market capitalization of $1248.36 billion. The value of the index is calculated in real time by Standard & Poors Custom Indexes. The index's website details the rules by which the WNA Index is derived.

The WNA Index is expected to be used as the basis for exchange-traded funds (ETFs). It has already been offered for licence to financial institutions and the first WNA Index-based financial products could be offered before the end of March.

No comments: