MPF/Noble Professional Services Index is upgraded to a real time index
14/09/2009
Standard & Poor’s to calculate the Index The Managing Partners’ Forum (MPF), a members′ association dedicated to enhancing the status of management in professional firms, and Noble the research-led independent investment bank dedicated to mid and small cap companies, are pleased to announce that the MPF/Noble Professional Services Index (PSI) has been upgraded and offers investors the feasibility to trade the professions as a class for the first time anywhere, with S&P Custom Indices (S&P) now taking over calculations of the PSI. The PSI, launched in March 2009, was compiled by Noble and seeks to build the profile of the professional services industry as an investment opportunity. The calculations by S&P will now enable the index to be calculated in real time and disseminated though TSX, ASX, HKEx, NYSE, CME, Borsa Italiana, RTS, CITICS, and Reuters. The real-time index is available to professional investors through Reuters and Bloomberg on ticker PMINMNGP. The Index is designed to enable investors, funds, analysts and firms themselves to track and compare the relative performance of listed UK professional firms, a growing yet invisible industry group as these firms were previously allocated across multiple sectors, hence it has hitherto been impossible for appropriate comparisons to be made by the investment community. The fifth month closed on 27th August at 1366 (+10.8% during the month) to establish a new high for the Index. Looking to the benchmarks, the Index is marginally ahead of both the FTSE AIM UK 100 and the FTSE 350 (Ex-investment). Sir Nigel Knowles, Chair of the MPF and Joint CEO of international law firm DLA Piper said, “As the principal body for the leaders of the professions, MPF is delighted that our index is shining a spotlight on the professions - a profitable, growing, resilient yet invisible industry sector. Upgrading to a widely disseminated real time index means that, for the first time anywhere, professional investors can trade in the shares of professional service firms as a distinct asset class.” John Llewellyn-Lloyd, CEO Investment Banking at Noble said, “We are delighted to have Standard & Poor’s Custom Indices now calculating the Index, while we will continue to provide the monthly commentary and host the Index webpage at http://www.noblegp.com/x/psi.html . Up to now, there have been no specialist funds dedicated exclusively to professional services firms, but with the Index calculated in real time backed by the credibility of S&P, we expect it to attract the attention of fund managers and institutional investors looking to capitalise on the potential of investing in the sector.”
ENDS
For more information contact: Ben Thompson, Group Head of Marketing Noble +44 20 7763 2200 Richard Chaplin, MPF +44 20 7786 9786 Sarah Gestetner, Citigate Dewe Rogerson +44 20 7638 9571
About Managing Partners’ Forum (MPF)
Founded in 1995, the Managing Partners’ Forum is the premier association for those involved in the management of professional firms throughout the world. As well managed firms are more profitable and attractive to clients, the MPF actively campaigns for excellence in management. We find that fee earner attitudes often result in insufficient priority being devoted to management. To help alter attitudes in favour of management, the MPF highlights issues that stand in the way of effective management and campaigns through a combination of: hard-hitting reports and surveys; articles in the media; rigorous awards; well-attended events in cities worldwide; and extensive knowledge-sharing.
About Noble
Noble is a research-led independent Anglo-Indian investment bank dedicated to mid- and small-cap companies. It provides a full range of services to companies, institutions and investment vehicles, with offices in London, Edinburgh and Mumbai. Noble publishes high quality fundamental research on more than 170 companies in UK and India.
In investment banking, Noble acts as sponsor, takeover adviser and broker on AIM, sponsor and broker on the LSE main market and adviser on Plus.
Noble has five operating companies in the UK, covering Investment Banking, Investment Management and Growth Capital, all of which are authorised and regulated by the Financial Services Authority.
MPF definition of a professional services firm
MPF defines professional services firms as: “Organisations whose products and services are based on professional expertise rather than on discrete products or commodities.” To qualify for the index, 80% of an organisation’s core business activity must require specialist knowledge of a subject, field or science, and satisfy at least four of the following six criteria:
· Involves higher level education and usually a formal qualification.
· Regulated by a professional body, licensing authority or similar.
· Has an ethical code of practice.
· Does not derive significant financial benefit from service or product providers that are recommended.
· Services can be infrequent, technical or unique.
Selection is usually based on a mix of skill, knowledge, reputation, ethics and creativity.
NB: For the purposes of the Index, firms that operate in financial services or with a market capitalisation of below £20 million or above £1 billion have been excluded