Cedrus Investments
Ltd. ("Cedrus") a boutique investment firm, today announced the formal launch
of two global nanotechnology indices - Cedrus Nanotechnology Index - Diversified
("CNID") and Cedrus Nanotechnology Index - Pure ("CNIP"). These indices are
designed to serve as benchmarks for professional investors to capitalize on
the fastest growing technology companies spanning the five markets most impacted
by nanotechnology (i.e., manufacturing, electronics, energy, life sciences and
environment).
Cedrus maintains two indices in order to meet the needs of diverse investors.
Cedrus’ diversified index (CNID) includes 220 equally-weighted companies
spanning all five nano-markets and is inclusive of both diversified companies
that have nanotechnology as only one of many growth drivers, and pure-play companies
that have nanotechnology as their primary driver of growth. Cedrus’ pure
index (CNIP) is a concentrated index, comprised of 67 equally-weighted pure-play
companies spanning all five nano-markets and best-suited for small cap investors.
Kimberly Nearing, Executive Vice President said, "Companies developing
nanotechnology have been among the best performing stocks over the past decade.
While the past is no guarantee of the future, we believe their outperformance
will continue, led by strong growth in innovation and demand for their products
and services."
Cedrus’ nanotechnology indices differ from others in that they are broader,
including more than the typical 10-30 company names, and they are equally-weighted,
rather than being market cap-weighted. Broader indices minimize company and
market segment specific risk and volatility, and more readily capture emerging
opportunities. They have a low correlation to the market and other more general
technology indices. Equally-weighted indices, by definition, give equal importance
to all members, making them superior comparative benchmarks to use within a
specific industry, such as nanotechnology.
Leading companies within each index will be covered by high-quality, objective
and actionable fundamental research. Both indices will be rebalanced quarterly
to reflect structural changes in this dynamic industry and ETF versions of each
will be launched shortly.
Paul Jackson, Chief Investment Officer commented, "These two indices
take the pulse of the future in this dynamic and increasingly important industry,
which already encompasses the great technology engine of the 20th and 21st centuries,
semiconductors."
Posted October 27th, 2009
