The EMIX Europe Index Series One liquid, investible index

“Since we acquired our index business in autumn 2013 we have been carefully assessing the benchmarking needs of the financial industry. We have identified a pressing need among investors for access to cost effective, robust indices which are suited to today’s investment environment. The inclusion of smaller companies in our indices offers a more complete representation of the European market through an investable, liquid index.”

Sui Chung, Managing Director, Euromoney Indices.

The EMIX Europe constituents at a glance

Introducing EMIX Europe

The EMIX Europe Index Series is a new benchmark series from Euromoney Indices designed to address investment managers’ needs to diversify into smaller companies in order to access attractive growth opportunities across the continent.

By combining large caps and investible mid and small caps, EMIX Europe captures 90% of Europe’s market capitalisation, and brings to the industry a unique three dimensional approach to indexing:

• A unique index construction methodology comprising a mix of large and liquid mid and small sized caps • A commitment to delivering better value for money, with a transparent and clear pricing structure • A barrier-free licence, giving greater flexibility to use the indexes with no additional fees

Companies in the index series

647*

Revenues

€9.7 trillion**

Countries covered

16Profits

€591 billion**

Market capitalisation

€8.0 trillion*

Tax paid

€285 billion**

Employees

27 million**

Data history available back to 2006

* As at 22 September 2014 ** Based on the last financial year available

Defining the EMIX Europe liquid universeAll Euromoney indices are derived from the EMIX Liquid Universe. This universe covers 99.95% of the world’s market capitalisation, screened for free float, foreign investor limits and liquidity. The most liquid line of each company is included in the universe which in most cases will be the primary listing, but liquid depositary receipts are also included where the underlying stock is unlisted or unavailable to foreign investors.

Combining the elements to create EMIX EuropeLarge caps together with liquid mid and small caps The large cap stocks from Europe (ex UK) and from the UK are included in EMIX Europe and are combined with the largest Europe mid and small cap stocks, ensuring that 35% of the Euromoney Smaller European Companies Index is captured and that each selected stock satisfies the minimum liquidity requirement.

Establishing a minimum ADTV requirement By employing a strict minimum average daily traded value (ADTV) filter, Euromoney Indices ensures that 35% of the Europe mid and small caps are represented without reducing the overall liquidity. This is achieved by setting the minimum liquidity requirement for mid and small caps at the level of the least liquid large cap constituent.

The large cap Europe stocks and the most liquid 35% of the Europe mid and small cap stocks are represented in the EMIX Europe Index, the main index in the series. The index is rebalanced every quarter, with a major rebalance taking place in September when the monthly ADTV of every large cap constituent of the index is established for the preceding 12 months, and each individual observation is ranked by traded value with the bottom 1 per cent being discarded as outliers. The 99th percentile of ADTV observations is then taken as a measure of the lowest acceptable level of liquidity for a constituent of the EMIX Europe Index. This is known as the Minimum ADTV Requirement, and all potential large, mid and small cap constituents must fulfil this requirement to enter the index.

The EMIX Europe Index constituents in summary • 350 large cap Europe (ex UK) stocks • Circa 120 large UK stocks with a market capitalisation equal to or above the smallest large cap Europe (ex UK) stock • Circa 170 Europe mid and small cap stocks that - meet the Minimum ADTV Requirement - capture 35% of the capitalisation of the Euromoney Smaller European Companies Index

Building the structure of EMIX EuropeEurope (ex UK) large caps • Companies from the liquid universe that are domiciled in Europe (ex UK) are ranked in descending order of market capitalisation • 350 stocks capture at least 85% of the total investible European equity market historically • The 350 largest stocks by market cap are selected as large cap constituents of the EMIX Europe Index

Europe (ex UK) mid and small caps • The next 1000 companies (ranked by market capitalisation) from the liquid universe that are domiciled in Europe (ex UK) are extracted to form constituents of the Euromoney Smaller European Companies (ex UK) Index

UK large caps • Companies from the liquid universe that are domiciled in the UK are ranked in descending order of market capitalisation • The company whose market capitalisation matches the 350th Europe (ex UK) company becomes the cut-off point for large cap inclusion • All UK companies with a market cap above this cut off point are defined as UK large caps • Circa 120 UK large cap stocks enter the EMIX Europe Index

UK mid and small caps • The next 350 companies (ranked by market capitalisation) from the liquid universe that are domiciled the UK are extracted to form constituents of the Euromoney Smaller UK Companies Index

EMIX Europe

Market weightings No. of Market Cap Weight Yield Market companies (EUR bn) % %Austria 10 34.7 0.4 2.5

Belgium 14 156.9 2.0 2.5

Denmark 20 201.0 2.5 1.6

Finland 16 103.1 1.3 3.5

France 91 1,213.1 15.2 3.1

Germany 75 1,079.9 13.6 2.7

Greece 7 31.8 0.4 0.2

Ireland 8 55.8 0.7 1.4

Italy 44 336.3 4.2 2.5

Netherlands 30 322.1 4.0 2.3

Norway 15 115.5 1.4 4.3

Portugal 8 28.6 0.4 2.7

Spain 38 440.3 5.5 4.6

Sweden 42 375.5 4.7 3.4

Switzerland 50 1,034.4 13.0 2.9

UK 179 2,440.1 30.6 3.8

Total 647 7,969.2 100.0 3.2

Industry group weightings No. of Market Cap Weight Yield Industry group companies (EUR bn) % %Natural resources 36 838.9 10.5 4.6

Basic materials 70 555.4 7.0 2.7

Industrial goods 71 734.2 9.2 2.7

Technology 31 302.8 3.8 1.8

Consumer goods 91 2,091.2 26.2 2.8

Business providers 150 1,282.4 16.1 3.8

Retail providers 46 306.8 3.9 3.0

Financial 152 1,857.6 23.3 3.3

Total 647 7,969.2 100.0 3.2

All data as at close 22 September 2014.

Index performance since inception

Liquid universe (distribution by size and traded value)

Market cap (EUR)

ADTV

(EUR

)

10k

100k

1000bn100bn10bn1bn100m10m

1m

10m

100m

1000m

EMIX Europe (large cap) Minimum turnover ratio Non EMIX Europe (large cap)

EMIX Europe (mid and small cap) Minimum Market Cap Upper Buffer Minimum Market Cap Lower Buffer

Euromoney Smaller European Companies Minimum ATDV Upper Buffer Minimum ATDV Lower Buffer

Dec 06 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13Jun 07 Jun 14Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13Dec 07

25

0

50

100

130

– Gross Total Return – Net Total Return – Price Return

Committing to better value for money and transparent pricingEMIX Europe’s fully transparent flat rate includes the ability to use the index name and data in all marketing materials, anywhere in the world, both in print and online. The fee includes fully comprehensive data services as standard, including daily constituent files, daily divisor and trader files and a five day forward looking corporate actions calendar.

• Single site licence - £28,500 • Country licence - £32,000 • Continent licence - £35,000 • 2 Continent licence - £50,000 • Global licence - £60,000 What’s included? • Daily Constituents • All region, country, currency and return indices • Use of indices for in-house blended indices • Use of indices for fund publications • Performance licence included • Custodian licence included • EMICS classification licence included • Index Values since inception • Daily corporate actions file For more information: Scott Thomson Phone: 0131 220 9090 Email: scott.thomson@euromoneyplc.com

Sui Chung Phone: 020 7779 8647 Email: schung@euromoney.com

Euromoney Indices Hobart House, 80 Hanover Street, Edinburgh EH2 1EL, UK

To view the full list of indices within the EMIX Europe Index Series see Bloomberg, Thomson Reuters or visit euromoneyindices.com

Euromoney Indices is an independent team of analysts providing an index service dedicated exclusively to the needs of today’s investment professionals.

We focus on devising the comprehensive index tools that underpin and validate successful asset management strategies.

With over twenty five years’ experience, we combine intellectual rigour with operational flexibility. We deliver a service to our customers that has a personal dimension and transparent pricing structure that’s unique in the industry.

Issued by Euromoney Trading Limited. Registered office: Nestor House, Playhouse Yard, London EC4V 5EX. Registration Number: 5935420 – England. Part of the Euromoney Institutional Investor PLC group.