Thomson Reuters has launched two indices focused on the US venture capital market, the Thomson Reuters Venture Capital Research Index (TR VC Research Index) and the Thomson Reuters Venture Capital Index (TR VC Index). The TR VC Research Index is a comprehensive indicator of the US venture capital industry while the TR VC Index is an investable index replicating the performance of the TR VC Research Index using liquid public securities.
Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals, has launched two indices focused on the US venture capital market, the Thomson Reuters Venture Capital Research Index (TR VC Research Index) and the Thomson Reuters Venture Capital Index (TR VC Index). The TR VC Research Index is a comprehensive and highly representative indicator of the US venture capital industry while the TR VC Index is a groundbreaking investable index replicating the performance of the TR VC Research Index using liquid public securities. The TR VC Index is the first investable venture capital index to create access to venture capital returns for investors who are looking for alternative asset class returns but do not have the means to participate as a limited partner in a venture capital fund.
The TR VC Index has been licensed to DSC Quantitative Group, LLC, who uses the index in a first to market investment solution. The DSC fund tracks the index, providing investors with liquid exposure to the traditionally hard to access venture capital asset class.
“Thomson Reuters is committed to providing market leading benchmarks and investable indices across all asset classes to connect the global financial community,” said Steven Carroll, head of Indices at Thomson Reuters. “For years, venture capital investment was characterized by lack of transparency, high fees and large asset requirements. For the first time, investors are now able to invest in an area of the market where we see significant growth in institutional investments over the longer term.”
In recent years, venture capital has been a volatile asset class, but provided far greater returns than public markets. Sophisticated institutional investors have historically been the only market participants able to gain meaningful access. This index tracking product will allow for less expensive, more liquid access to the strong returns associated with the asset class.
Index histories are available for both indices from January 1, 1996.
The comparative data below shows that venture capital has outperformed equity and bond markets since 1996.
*Annualized Returns YTD 1 Y* 5 Y* Since 1/96*
Thomson Reuters Venture Capital Index 29.00% 33.32% 9.66% 19.38%
Thomson Reuters Venture Capital Research Index 21.16% 42.39% 10.95% 19.67%
Thomson Reuters US Bond Index 2.27% 3.02% 6.23% 5.87%
Thomson Reuters US Equity Index 16.06% 16.65% 1.30% 7.54%
Source: Thomson Reuters Indices, data as at 28 Sep 2012
The Thomson Reuters Venture Capital Indices extend the coverage of index solutions for alternative asset classes that the Thomson Reuters Indices group provides. In addition, broad index families covering equities and fixed income markets globally are available. The Thomson Reuters Indices offering is extended continually based on client requests.
Index data is available on Thomson Reuters desktop products for free. For sub-licensing of the Thomson Reuters Venture Capital Index, please contact Index_Queries@thomsonreuters.com.
Thomson Reuters provides innovative indices and index-related services to the global financial community to help investors make better decisions. Our index clients and partners rely upon the unparalleled breath, depth, global network and vast data and content sets that only Thomson Reuters can provide. Backed by the content, data, independence and global information network of Thomson Reuters, our indices and index services are designed to suit any need. For more information, go to Thomson Reuters Indices.
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