SHANGHAI, China, Dec. 18 /Xinhua-PRNewswire/ -- Reuters (LSE: RTR,
Nasdaq: RTRSY) today launches a second benchmark index, the Reuter China
Pension Index 2 (RCPI-2), in response to investor demand and China's capital
liberalisation programme. Under this programme China is taking steps to put
the nation's huge pool of savings to work in global capital markets.
Reuters China Pension Index 2 (RCPI-2) will form a benchmark for the
investment performance of Enterprise Annuity funds that do not have equity
investments. The newly created Index takes a more conservative approach and
complements the existing Index.
The move will give plan sponsors, trustees and investment managers two
benchmarks they can refer to according to their investment styles. Both
indices will be updated daily.
Alex Hungate, Reuters Asia Managing Director said: "To facilitate this
process, Reuters continues to provide China, one of the world's biggest
potential growth markets for pension funds, with new industry benchmarks to
meet the requirements of different investment preferences."
Stuart Leckie, Chairman, Stirling Finance Limited, said: "The
introduction of the Reuters China Pension Index is a major step forward in
the development of China's private sector pension system."
Reuters China Pension Index 1 (RCPI-1) was launched on 31 March 2006 and
was the first benchmark index in China to measure the investment performance
of China's Enterprise Annuity (EA) funds. RCPI is an investment benchmark
for China's Enterprise Annuity (EA) system and one of the three pillars of
the Chinese pension system.
At the same time as today's launch China's National Social Security Fund
(NSSF) is awarding its first mandates to foreign fund managers, entrusting
eleven firms with investments of more than $1 billion in international
stocks and bonds on its behalf.
Note to Editors
After consultation with market participants and the RCPI Advisory
Committee, Reuters has made a number of decisions to enhance the existing
Index:
-- Create an additional benchmark index to track the investment
performance of EA funds that do not have equity investments.
Therefore, the RCPI series is now composed of two indices: RCPI-1
and RCPI-2:
-- Increase the calculation frequency of the RCPI series from monthly
to daily
-- Utilize the Shanghai/Shenzhen 300 TR ("total return") Index.
Reuters has built the RCPI series in response to strong demand from both
Chinese and foreign investors for benchmark indices in the developing
pension industry in China. The Enterprise Annuity market, currently
estimated to be over USD 10 billion in size, is expected to grow
exponentially to USD 100 billion in size in the next five years.
About Reuters
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countries and had annual revenues of GBP2.4 billion/$4.4 billion in 2005.
For more information and the latest news, visit www.reuters.com .
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