LWI34 or LWI25

As the deadline for our IPO is approaching we have to decide about the future strategy of our index.

If you compare with the chart in

http://lemurinvest.blogspot.com we think the situation is rather clear.

LWI25 is performing constantly better whether we look at the development since 7th July as in the chart or at the beginning of our calculations on 21st June.

The performance since 21st June is (13JUL07: 9pm SLT):

LWI34 : 27.4%
LWI25: 48.2%

The performance since 7th July is (13JUL07: 9pm SLT):

LWI34 : 5.26%
LWI25 : 7.86%

We are standing before the next dividend payment period which will boost the indexes again as dividends are included in the calculation.

Reasons which speak for LWI25 are:

(1) Better performance till now 48.2% compared to 27.4%
(2) It is much easier to manage an index with 25 than with 34 titles
(3) Costs for the maintenance are much lower
(4) Easier to interpret
(5) As we try to exclude companies with only little market capitalization and almost not existing free float there are not so many titles available
(6) Life cycles are short in SL. An index with 25 titles is more stable than one with 34 titles

Reasons which speak for LWI34:

(1) Better reflect the overall situation. However, as we don’t consider market capitalization and free float in our calculations the index will not reflect the market as such it is more a performance comparison between titles. This is better done with one of only 25 titles.
(2) The index is more stable as there are more titles involved. May be, but on the other hand we also bring volatility in the index as not so many "good" titles are available which make the index less stable in the end.
(3) You get a better overview if you do company analysis over 34 titles then over 25. True, but we do company analysis independently of whether the index has 25 or 34 titles.
(4) ....

Your advices and comments are requested here. As you can imagine we are favoring LWI25 but it is up to you to decide.

Use the vote ticker in the sidebar to vote and don't forget to give me a feedback. I'm at your entire disposal to answer any questions etc.

Thank you.

by the way, there are still some shares available. Deadline for our IPO is on 17th July.


Greetz
Casper Trebuchet
LEM, CEO

House of derivative (LFB, LWI)