Brazilian stock exchange BM&FBOVESPA has started calculating a new 127-constituent corporate governance index.
The São Paulo-based bourse – the world’s eighth largest stock exchange – said the new index was created to show the performance of the constituent companies of its ‘Novo Mercado’ (New Market) listing segment.
Companies in the Novo Mercado commit voluntarily to adopt a variety of corporate governance practices in addition to those required by law.
The index is called Índice de Ações com Governança Corporativa Diferenciada – Novo Mercado (IGC-NM), or Special Corporate Governance Stock Index – Novo Mercado, and will be recalculated every four months like its other indices. It is in addition to the exchange’s existing Special Corporate Governance (IGC) and Corporate Governance Trade (IGCT) indices.
The new index has gained 54.4% since its starting baseof 2006. Over the same period, the IGC is up 40.2% and the main Ibovespa benchmark is up 28.3%.
Constituents include leading Brazilian companies such as aerospace company Embraer, energy concern Tractebel Energia and BM&FBOVESPA itself.
The launch of the new index coincides with the latest figures showing strong returns from BM&FBOVESPA’s Corporate Sustainability Index (ISE).
It has returned 17.4% over the past 12 months, although it fell 2.48% in August. It’s 11.2% up in the year so far.
As part of the Rio+20 summit in June, BM&FBOVESPA was among several global exchanges to sign a commitment to responsible investment as part of the wider Sustainable Stock Exchanges initiative. It also runs a separate ‘Novo Valor’ web site to highlight its sustainability activities.
BM&FBOVEPSA link (Portuguese)