S&P Indices has released a report showing that its Global Luxury Index has delivered annualised returns of 9.3% in the six years to end-March 2012.
Date: Jun 1, 2012
S&P Indices has released a report showing that its Global Luxury Index has delivered annualised returns of 9.3% in the six years to end-March 2012, outperforming the market (S&P Global BMI) and benchmark (S&P Global BMI Consumer Discretionary) by 6.2% and 4.9% per annum, respectively.
The index comprises 80 of the world’s largest publicly-traded companies engaged in the production or distribution of luxury goods, or the provision of luxury services.
"The drivers of the Index and its constituent stocks are increased demand for luxury goods and services especially from emerging markets, the rapid expansion of retail networks in high potential markets, as well as the bigger profit margins luxury brands are able to extract from customers compared to other consumer goods,” said Liyu Zheng, research director at S&P Indices. “Demand for luxury has been particularly strong in Asia, and after the financial crisis the S&P Global Luxury Index outperformed to an even greater extent as demand in these markets held.”