EPIC launches the first Photonics Index
EPIC – the European Photonics Industry Consortium – has published the first Photonics Index. Under the name of ´Solactive EPIC Core Photonics Index´ the index represents the stock performance of 58 Photonics companies.
These are companies listed on the stock market for which you can buy shares, but if you would like to invest, you would need to choose what companies to select. When you invest in a financial product that tracks the index, you are investing in 58 companies which means that you reduce volatility and consequently risk. EPIC has developed the methodology of what companies should be included, and contracted Frankfurt-based Solactive who since 2007 has been developing tailor-made and multi-asset class index solutions for index-linked investment products.
Very soon, every individual who wants to surf the Photonics wave will be able to invest in this sector that historically has had shares value increase with an average of 25.9% Compound Annual Growth Rate (CAGR). The index is a tool to assess the ROI of the Photonics industry, but EPIC will build on this index to ensure several benefits for both the industry at large and directly the members of EPIC. As the consortium embarks on contributing to the structuring of a Photonics capital market to support the creation and growth of the companies, as we inform financial investors and highlight markets and applications potential, the impact will result in greater recognition and credibility of the Photonics sector.
The members of EPIC will be able to have greater access to the financial investment community, will be better informed on the various options to raise money, and benefit of the increased activities related to business/growth that will be undertaken by the association. An index will also generally increase the credibility of the business of EPIC members. Initial feedback has already been extremely positive, with companies such as SHUTE Sensing Solutions from Denmark saying they will be using the index performance graph in their investor presentations. Lightwave Logic (Stock: LWLG) has been actively promoting their inclusion in the index and this has been picked up various sites such as Yahoo, Financial Times, and more.