THE EUROMONEY/FIRST BOSTON GLOBAL STOCK INDEX
For six months, a team of analysts and researchers under the direction of First Boston managing director James Freeman has been working to perfect the Euromoney/First Boston Global Stock Index.
The index is composed of national indices of 17 markets: the US, Canada, the UK, Germany, France, the Netherlands, Switzerland, Italy, Belgium, Spain, Sweden, Denmark, Norway, Japan, Australia, Singapore/Malaysia and Hong Kong. The index consists of over 1,000 companies, selected from each market. The national indices were then weighted according to market capitalization to create the Global Index.
It is so designed that the global investor can monitor the performance of the world's major equity markets, and compare the track records of international money managers.
In devising the index, First Boston drew on the support and guidance of two recognized authorities on the subject, Lawrence Fisher, head of the business school at Rutgers University, and Charles Wolf, a professor of finance at Columbia Business School.
Fisher, for the 20 years preceding his appointment to Rutgers, was at the Chicago Business School, where he was responsible for creating the Chicago Business Security Price Tapes in the US stock market.