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EVEN 30™ index

An index specifically designed for Structured Products which follows a disciplined UK equity investment strategy designed to deliver a more even return.

Equity index
Volatility driven
Equally weighted
No dividends, no fees or charges

Equity index
The EVEN 30™ tracks the performance of the 30 least volatile stocks from the 100 largest companies listed on the London Stock Exchange. The index is re-balanced monthly and based on a clear and pre-defined formula.

The index is designed to be a lower risk alternative to the FTSE 100.

The index level is calculated daily by Finvex Group SA/NV (‘Finvex Group’), an independent party that specialises in creating custom indices. Their calculation is checked by Investec Bank plc, the Index Sponsor.

Index levels are published on Bloomberg (ticker: EVEN30 <INDEX>).

Index levels are also available on the Index Levels page on this website.

Volatility driven
There are two ways in which the index is designed to be lower risk than the FTSE 100. Firstly, as mentioned above, the EVEN 30™ is based on the performance of the 30 least volatile stocks from the 100 largest companies listed on the London Stock Exchange. Secondly, if the volatility of the EVEN 30™ remains high relative to the FTSE 100, the index applies a volatility control which proportionally reduces its exposure to the 30 stocks. The idea is to avoid a situation where, even though the 30 stocks of the EVEN 30™ are themselves the least volatile, the index itself remains risky. For example, this might happen if the 30 stocks happen to show a strong sector bias.

Equally weighted
The EVEN 30™ is an equally weighted index with no pre-determined bias to any company or sector. This means that large stocks do not dominate or distort the index.

No dividends, no fees or charges (i.e. a pure price return index)
Like indices such as the FTSE 100, the EVEN 30™ is calculated based on the performance of stock prices, excluding dividends. The calculation of the Index is unaffected by account charges or fees (i.e. there is no performance drag due to charges or fees).

Index Reconstruction
The EVEN 30™ has been based at an initial level of 1000 on 16 January 1998. The graph below shows how the EVEN 30™ would have performed against the FTSE 100 since that date.

As of 16 September 2010, the EVEN 30™ has been calculated live, on a daily basis.
 

EVEN 30™ vs FTSE 100 performance 16 January 1998 to present

EVEN 30 Graph


 

Products linked to the EVEN 30™
We are happy to discuss any queries regarding issuance of products linked to this index. Please contact us on 020 7597 4065 or write to us at structured.products@investec.co.uk.

Questions and Answers

Why has the Index been developed?

Over the last 10 years financial markets have been highly volatile. This index is aimed at delivering more stable performance than comparable large cap UK equity indices.

What is volatility?

With respect to this index, a higher volatility means that the price of a stock has been fluctuating (both positively and negatively) more over a specific period than the price of a stock with a lower volatility.

What is the volatility control and how does it work?

The volatility control is applied to ensure that the volatility of the EVEN 30™ remains relatively low even in extreme market conditions. When the volatility of the index increases above a pre-determined level, there is a proportional disinvestment in the 30 stocks to reduce the index volatility to below this level. There is no (zero) return on the portion that is disinvested.

What is the historic average disinvestment?

The volatility control is only triggered in times of high equity market volatility. Historical analysis since the index start date of 16 January 1998 shows that there would have been an average disinvestment of approximately 4%. Historical analysis cannot be taken as a prediction of future levels of disinvestment.

Does the EVEN 30™ include dividends?

No, the EVEN 30™ is a price return index which does not include dividends.

How does the EVEN 30™ differ from the FTSE 100?

The EVEN 30™ is an equally weighted index whereas the FTSE 100 index is a market capitalisation-weighted index.

The EVEN 30™ is based on the 30 least volatile companies stock prices taken from the 100 companies with largest market capitalisation listed on the London Stock Exchange. This will result in the volatility of the EVEN 30™ being lower than the FTSE 100 equivalent. In addition, the EVEN 30™ has a volatility control.

What does the EVEN 30™ mean for Structured Products?

The lower volatility of the EVEN 30™ generally means that structured products can be offered with increased participation in growth performance.

Who is the Index sponsor?

Investec Bank plc.

Who is the calculation agent?

Finvex Group are the third party that calculate the index level.

Who are Finvex Group?

Finvex Group was created in 2009 and is a partnership of financial investment experts who provide specific financial solutions to a variety of financial fields such as investment managers, financial advisors, banks and insurers in the field of structured investments by means of custom indexation.

How can I find out more about the calculation methodology of the EVEN 30™?

An Index Calculation Summary is available as a download at the top of this page. This document gives a general description of the calculation methodology employed when calculating index levels. A more detailed methodology is available by contacting Investec Structured Products on 020 7597 4065 or by writing to structured.products@investec.co.uk

 

 

For enquiries call 020 7597 4065 or
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Historic
Constituents

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Historic
Index Levels

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Index Calculation
Summary

Index Calculation Summary