STOXX broadens global equity suite

STOXX has expanded its global equity index offering with the launch of the STOXX Investable Market Indices (IMI), a new benchmark family designed to give institutional investors broader, more flexible exposure across developed and emerging equity markets.

The index provider said the new suite captures around 99% of the investable global equity universe, covering 23 developed and 23 emerging markets across large-, mid- and small-cap companies. At launch, the family comprises more than 1300 indices spanning global, regional and single-country exposures.

STOXX said the new framework was developed to support portfolio construction and benchmarking through a transparent, scalable methodology, while complimenting its existing range of global equity indices.

STOXX general manager Axel Lomholt said the launch strengthens its position as a benchmark provider for institutional investors seeking greater flexibility.

"With the launch of STOXX IMI, we are introducing a cost-effective new choice in the market and further strengthening STOXX's role as a global partner for institutional investors, providing robust, transparent benchmark solutions alongside the flexibility, client service and tailored offerings that institutional investors increasingly expect from their index provider," Lomholt said.

The launch comes as asset owners increasingly seek benchmark solutions that extend beyond traditional large-cap indices to provide more comprehensive market exposure while allowing greater customisation.

STOXX said the framework has already been adopted across several institutional investment mandates.

Dutch pension investor APG Asset Management selected the framework for a €20 billion ($32.5bn) emerging markets equity allocation, citing its ability to combine broad market exposure with sustainability considerations.

"For large institutional investors, the ability to align benchmarks closely with investment beliefs while maintaining transparency and scalability is increasingly important. The STOXX IMI framework provides that flexibility within a consistent and robust structure," APG Asset Management team lead for Quant & Index Solutions Hans van Westrienen said.

Swiss Life Asset Management is also using the framework to support low-cost core equity exposures.

"STOXX IMI provide a robust framework for accessing broad global equity markets through a transparent and investable approach. We see significant potential for investors seeking scalable and cost-efficient global equity benchmark exposures," said Swiss Life Asset Managers, head securities Daniel Berner.

Financial Standard is owned by ISS Market Intelligence, which is part of ISS STOXX.