XACT Fonder AB has signed a licence agreement with FTSE, whose new European index is based on fundamental key figures. The index forms the basis of XACT's new exchange-traded European fund, which is the first of its kind in the Nordic region.

 

Unlike the capital weighting of a traditional index, the content of a fundamental index is based on the stocks' key figures, such as book value and sales.

 

"The new fundamental index provides higher exposure to value stocks and a lower exposure to growth stocks. Historically, it has given an extra return of some 3% per annum over a 40-year period, compared with an equivalent capital-weighted index", says Dag Tjernsmo, CEO of XACT Fonder.

 

"I am delighted that we have now taken the first step towards being able to list an exchange-traded fund with European exposure. The fact that this is the first fund in the Nordic region to be based on a fundamental index makes it even more satisfying." says Dag Tjernsmo.

 

The listing of the new exchange-traded European fund will take place after the fund regulations of the fund have been approved by the Finansinspektionen (the Swedish Financial Supervisory Authority).

 

 

 

XACT Fonder was founded in 2000 and is now the Nordic market leader in exchange-traded funds. In 2000, XACT launched the first exchange-traded fund in the Nordic region. At present, there are five XACT funds listed on the Stockholm stock exchange, one on the Oslo stock exchange and one on the Helsinki stock exchange. XACT funds are offered by XACT Fonder in Sweden, Handelsbanken Fondförvaltning in Norway and Handelsbanken Fondbolag in Finland. As at 30 April 2006, total assets under management amounted to SEK 19bn. The fund management company is a subsidiary of Handelsbanken, one of Sweden's leading players in the field of asset management.

 

XACT Fonder AB, Blasieholmstorg 12, 106 70 Stockholm, Sweden, Tel. +46 8 701 4000, Fax +46 8-701 3833, xact@handelsbanken.se, www.xact.se.

 

A fund's historical return is no guarantee of future return. Investments made in a fund can rise or fall in value and it is not certain that you will get back all of the capital you have invested.