INFOSTREAM - WordPress.com rising optimism for economic recovery and improving performance for US companies. In our study, from 2005 to 2008 the concentrated business group provided

INFOSTREAM1ST QUARTER 2011

IN THIS ISSUE

• Concentration vs diversification – single- vs multi-line businesses• Coming soon – enhanced search functionality in Datastream Navigator• Thomson Reuters Economics Point in Time data now

available in Datastream• Comprehensive Economics database of 2.3 million series –

Datastream + EcoWin

© THOMSON REUTERS 2011 21ST QUARTER 2011

FEATURE Concentration vs DiversificationSingle- vs Multi-Line Businesses: Which Sport the Better Bottom Line?

PRODUCT ENHANCEMENT Enhanced Search Functionality Coming Soon in Datastream NavigatorDatastream Economics Point in Time CONTENT ENHANCEMENT Datastream Equity Content: Market Value by Company Available as a Time SeriesEquity Indices – Update for February 2011 • Global • Middle East • Europe • AsiaDatastream Economics Content News Datastream + EcoWin – European PowerhouseEuro Area Membership at 17 – Euro Area Profile in ExplorerCommodities and EnergyThomson Reuters Pricing Service Evaluated Prices Now Available for Over 110,000 Fixed Income SecuritiesWorldscope – Expansion of Coverage Using Data Sourced from Reuters FundamentalsCompany Additions to Worldscope

CONTRIBUTORS

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CONTENTS


CONCENTRATION VS DIVERSIFICATION SINGLE- VS MULTI-LINE BUSINESSES: WHICH SPORT THE BETTER BOTTOM LINE? Reporting Analyst: Amitesh Kumar

Concentrated corporations (ie those operating within one business segment) are expected to record better top- and bottom-line growth in 2010 and 2011, compared to diversified corporations (ie those operating in more than one business segment, whether across industries or within an industry), amid rising optimism for economic recovery and improving performance for US companies.

In our study, from 2005 to 2008 the concentrated business group provided superior top- and bottom-line growth compared to the diversified business group. However, the trend reversed during the financial crisis peak in 2009, when diversifieds were better equipped to endure the downtown, as difficulties in one business segment were offset by growth in another.

The diversified group has enjoyed a higher aggregate profit margin compared to the concentrated group, arising from cross-business cost savings and tax gains. However, during the financial crisis, soaring commodity prices put upward pressure on total operating costs in the diversified group.

If the commodity price rise continues, concentrateds may enjoy a cost advantage, resulting in higher margins over diversifieds. Therefore concentrateds could be a hedge against commodity prices.

Stocks with concentrated businesses, as listed in the Thomson Reuters US Domestic Float Share Price Index, have outperformed their diversified peers since 2005. Creating indexes to contrast concentrateds’ versus diversifieds’ performance shows that the concentrated index experienced greater volatility during the economic crisis.

BackgroundIn aggregate, analysts anticipate robust S&P 500 earnings growth in 2011, and they are also optimistic about revenue and capital market growth, according to a recent Thomson Reuters Proprietary Research study (Analysts Expect Record Earnings for 2011, 23-Nov-2010). Therefore investors may be looking to identify stocks that are expected to outperform this optimistic overall outlook.

This study compares performance of companies that largely pursue one line of business (ie single-

FEATURE

http://www.trpropresearch.com/archive/file/757/


This study compares performance of companies that largely pursue one line of business (ie single-segment firms, such as Coca-Cola [beverages] and Manpower [employment services]) against performance of companies in multiple lines of business (eg conglomerates such as General Electric, whose activities span energy infrastructure, technology infrastructure, media, capital finance and consumer & industrial – as well as multi-line businesses, such as JPMorgan, which operates in many segments of financial services, including retail, investment banking, card services and asset & wealth management). We examine differences in fundamentals before and during the financial crisis, and attempt to identify which group garnered greater asset allocation from investors.

Defining concentrated and diversifiedWe classified the companies in the Thomson Reuters US Domestic Float Share Price Index into two groups: “concentrated” and “diversified”, each consisting of 300 companies:

• The concentrated business group consists of companies operating in only one business segment and generating almost 100% of annual revenues from that single segment, on average, from 2004 to 2009.

• The diversified business group consists of companies operating in four or more business segments, deriving less than 60% of annual revenues from any one business segment, on average, from 2004 to 2009.

The analysis is based on IBES historical data and forward-looking estimates for top- and bottom-line performance.

Exhibit 1 compares top-line growth between our concentrated and diversified groups. Clearly, the concentrated group achieved higher top-line growth than the diversified group from 2005 to 2008. However, the concentrated group’s sales dropped 4.5% in 2009, during the economic downturn, compared to a 3.1% drop for the diversified group. As US companies emerge from the worst financial crisis in more than a generation, top-line growth in the concentrated group is likely to bounce back, and it is expected to outpace the diversifieds, achieving 6.4% and 7.9% growth in 2010 and 2011, respectively, versus 4.1% and 5.4% for the diversified group.

Exhibit 1: Sales (% year-

over-year change): concentrated business

group vs diversified business group

Source: Thomson Reuters Datastream.


Nevertheless, the diversified group achieved a superior profit margin from 2004 to 2007, before the financial crisis. Exhibit 3 shows that the net profit margin trend is the inverse of top- and bottom-line growth, for both the concentrated and diversified groups. The diversified group’s higher margin is mainly attributable to lower operating costs for these companies (Exhibit 4A), achieved through cross-business cost-savings opportunities. Also, tax advantages (Exhibit 4B) and greater leverage among the diversifieds (Appendix 2) further boosted profit margins in this group.

Bottom-line growth for the two groups almost mirrors the top-line comparison. The concentrated group’s earnings growth exceeded that of the diversified group from 2005 to 2008. However, in 2009, when the financial crisis had its greatest impact on corporate earnings, the diversified group’s aggregate earnings fell only 8.5%, compared to an 11.5% drop in the concentrated group. Furthermore, the diversified group is expected to maintain its superiority in 2010, climbing 44.2% versus 24.3% for concentrated group earnings – but, in 2011, this earnings growth comparison is expected to return to favour the concentrated group. According to analysts’ aggregate estimates, the concentrated group is expected to see earnings growth of 18.5% in 2011, compared to 14.8% for the diversified group.

Exhibit 2: Net income (% year-

over-year change): concentrated business

group vs diversified business group

Exhibit 3: Net profit margin (% year-over-year

change): concentrated business group vs

diversified business group




Exhibit 4:A: Total operating

expenses (% of sales) B: Income tax/EBIT

C: Interest expense/EBIT


We note that the margin gap between both groups narrowed in 2007 and reversed in 2008 and 2009. The drop in the diversified group’s profit margin is largely attributable to soaring total operating costs caused by higher costs of goods sold (raw materials costs), due to increasing commodity prices. The Thomson Reuters Equal Weight Continuous Commodity (CCI) Index (NYFECRB), which includes energy as well as industrial inputs prices, rose 72%, to 482, in 2008, from 280 in 2004. Our number crunching suggests that total operating expenses increased mainly in the basic materials, industrials and utilities sectors, which, combined, account for nearly 45% of total costs in the diversified group (Appendix 4), and heavily utilise energy and industrial materials as inputs. Increased interest expenses in 2007 and 2008, due to tight credit conditions, also contributed to the diversified group’s lower profit margins, as the diversifieds use more debt as a percentage of total assets than do concentrateds (Exhibit 4C).

According to analysts’ aggregate estimates, however, the diversified group’s margins should rebound in 2010 and 2011, exceeding the concentrated group. Still, the diversified group is likely to remain pressured by a continuous rise in commodity prices. The Thomson Reuters Equal Weight Continuous Commodity Index continues to rise (Appendix 1), and, if this trend continues, concentrated businesses may enjoy a cost advantage going forward, possibly providing a better hedge against commodity prices.

We screened the concentrated and diversified business groups that we derived from the Thomson Reuters US Domestic Float Share Price Index (XUSFLDL) using the Datastream User-Created Index Function. Exhibit 5 shows that the concentrated business group enjoyed a 41% (dividend-adjusted) return since 2005, outperforming the diversified business group, which gained only about 6% over this span. The concentrated business group also outperformed the benchmark, while the diversified group slightly underperformed the market. We use a total-return price index for this study, showing a theoretical growth in value of a share holding over a specified period, and assuming re-investment of dividends (for detailed calculation, see Appendix 7).

Exhibit 5: Concentrated business

group outperforms diversified business group:

total return price index (div adj)



Exhibit 6 shows a clear picture of the two groups’ risk/return performance since 2005. Until 2007, the concentrated business group generated higher returns, with lower volatility, compared to the diversified business group. (While sector [see Appendix 3] and size biases [ie concentrated companies tend to have lower market caps, Appendix 5] may have influenced some of these relative performance differences, it is interesting to note that, counterintuitively, the concentrated group’s higher performance was achieved with lower relative risk.) But, since 2008, when the credit crisis gripped the economy, the concentrated group has been more volatile than the diversified group, and has generated lower returns (12% versus the diversifieds’ 18% in 2009). Investors favoured diversifieds during the crisis, possibly believing that diversification engenders safety, while also seeking the higher dividends paid (Appendix 6) by the larger companies in the diversifieds’ group. But we note that the pre-2008 trend seems to be returning, as the concentrated group gained 18% in 2010 (versus 2% thus far for the diversifieds), amid signs of an improving US economic outlook.

Exhibit 6:Risk & return profile:

concentrated business group vs diversified

business group

Source: Thomson Reuters Datastream. (Light orange highlights higher relative stock performance, lower relative volatility, concentrateds vs diversifieds.)

YEAR CONCENTRATED BUSINESS GROUP DIVERSIFIED BUSINESS GROUP

ANNUALISED RETURN

ANNUALISED RETURN

ANNUALISED VOLATILITY

ANNUALISED VOLATILITY

2005 11% 19% 9% 20%2006 46% 25% 32% 29%2007 -30% 37% -32% 40%2008 12% 16% 6% 15%2009 12% 13% 18% 10%2010 18% 12% 2% 10%

ConclusionBased on our analysis of concentrated versus diversified companies, it appears that concentrated companies saw stronger fundamental performance than diversified companies before the financial crisis. However, the trend reversed during the crisis, when diversified firms were better able to endure the downturn, as growth in one business segment could offset difficulties in another. We also found that, since 2005, the shares of concentrated businesses outperformed those of diversified businesses. However, volatility increased during the crisis, and the price returns diminished when the crisis peaked. As the US economy recovers, and with analysts expecting robust US corporate earnings growth in 2011, concentrated companies should show higher top- and bottom-line growth compared to diversified companies, as defined by our Thomson Reuters US Domestic Float Share Price Index groupings. We also expect the stocks in the concentrated group to outperform based on our analysis of fundamental growth and historical risk/return profiles for the two groups. Investors might consider being on the long side of stocks in the concentrated group to generate higher returns if the US economy continues to improve.

Appendices

Appendix 1: Commodity prices



Appendix 2: Long-term debt as a

percentage of total assets: concentrated vs diversified

business group

Appendix 3: Thomson Reuters

Business Classification, companies in

concentrated vs diversified business group

Appendix 5: Market cap US$ millions (as at 7 December 2010):

concentrated vs diversified business group

Appendix 4: Cost of goods sold to

sales (%): Thomson Reuters Business

Classification, diversified business group




BUSINESS GROUP

Basic Materials

Technology Energy Financials Telecom TotalCyclical Consumer Goods & Services

Utilities HealthcareIndustrials Non-Cyclical Consumer Goods & Services

Concentrated 6 34 4 58 54 51 21 23 45 5 301

Diversified 30 69 21 13 27 46 20 16 55 2 301

Source: Thomson Reuters Datastream. *Note: Most of the financials companies do not report cost of goods sold.

GOODS Y2004 Y2005 Y2006 Y2007 Y2008 Y2009 Cost of Goods Sold: 5-Year Average Sector Contribution In Total

Basic Materials 75% 75% 75% 76% 78% 75% 10.6%

Industrials 61% 63% 63% 64% 64% 65% 28.6%

Utilities 57% 61% 59% 59% 63% 54% 4.6%

Healthcare 33% 33% 32% 34% 34% 34% 2.0%

Technology 57% 56% 55% 55% 53% 52% 12.5%

Cyclical Consumer Goods & Services 71% 69% 69% 70% 69% 69% 27.7%

Non-Cyclical Consumer Goods & Services 62% 62% 61% 61% 62% 63% 10.1%

Energy 77% 79% 77% 76% 75% 72% 3.5%

Financials* 1% 1% 1% 1% 1% 1% 0.4%

Telecommunications Services 41% 38% 39% 42% 41% 41% 0.0%

BUSINESS GROUP MEDIAN MARKET CAP TOTAL MARKET CAP

Concentrated Business Group 1,848 1,415,748Diversified Business Group 4,426 4,660,828


Appendix 6: Median annual dividend

yield: concentrated vs diversified business group

Appendix 7: Total return index



A return index (RI) shows a theoretical growth in value of a share holding over a specified period, assuming that dividends are re-invested to purchase additional units of an equity or unit trust at the closing price applicable on the ex-dividend date. The RI is constructed using an annualised dividend yield, as follows:

N = number of working days in the year (taken to be 260)

From 1988 onwards (and from 1973 for US and Canadian stocks), the availability of detailed dividend payment data enables a more realistic method to be used in which the discrete quantity of dividend paid is added to the price on the ex-date of the payment. Then:

Where:

Where:

Except when t = ex-date of the dividend payment Dt then:

= return index on day t

= return index on previous day

= price index on day t

= price index on previous day

= dividend yield % on day t

= price on ex-date

= price on previous day

= dividend payment associated with ex-date t

Gross dividends are used where available and the calculation ignores tax and re-investment charges. Adjusted closing prices are used throughout to determine price index and hence return index. At this point the RI is calculated back to the base date.


Appendix 8: Datastream DS

mnemonics for indices used in this study

Do It Yourself: Recreate This Analysis in Datastream Thomson Reuters has a comprehensive dataset for US companies. The product segment information available in Datastream for US companies adds value to the information they disseminate about their industry exposure. It helps analyse concentrated versus diversified business fundamental performance. Furthermore, the IBES sales and net income estimates help derive clues about outlooks based on exposure to various business segments.

The steps below illustrate how to access the data. To start:

1: From an Excel sheet, click on T-ONE/Datastream add-in and open Time Series Request. A Time Series Request window will appear.

2: Click on the Datastream Search navigator in front of Series/Lists under Request Details. A Datastream Navigator window will appear. Click on Set Criteria to get the search option window. In the Datastream Navigator window select Data Category: Equity.

3: You can retrieve the Product segment description and revenue data for the companies. Select the Data Category as Equities from the drop-down menu in Datastream Navigator and enter the Equity name as the search name.

THOMSON REUTERS EQUAL WEIGHT CONTINUOUS COMMODITY (CCI) INDEX NYFECRB

THOMSON REUTERS EQUAL WEIGHT CCI ENERGY INDEX CRBENGY

THOMSON REUTERS EQUAL WEIGHT CCI INDUSTRIALS INDEX CRBINDS

THOMSON REUTERS US DOMESTIC FLOAT SHARE PRICE INDEX XUSFLDL

THOMSON REUTERS US DOMESTIC FLOAT SHARE PRICE INDEX – CONCENTRATED BUSINESS GROUP X%FOCUSD

THOMSON REUTERS US DOMESTIC FLOAT SHARE PRICE INDEX – DIVERSIFIED BUSINESS GROUP X%DIVERD



4: Select Data Category as Product segment description or sales and download it for the relevant period. Choose Sales Mean as Data Category to extract sales estimates for the relevant period.

5: You can retrieve multiple IBES fundamental data for companies by clicking on IBES and selecting the required item from the options displayed on the right side of Datatype Search navigator.


6: Click on the Submit button at the bottom of the Time Series Request to get the data. This will navigate you to the Excel sheet and provide the data in few seconds.

7: You can also chart Commodity Prices in Datastream Charting. From an Excel sheet, click on T-ONE/Datastream Charting add-in and open Chart. A Datastream Charting navigator with a blank chart will appear.

8: In the Datastream Charting navigator click the drop-down menu in front of Line 1. Click on Find New Series to get the Datastream Search navigator window. In the Datastream Navigator window select Data Category: Commodity.

9: You can retrieve the Thomson Reuters Commodity Price in the charting window. In the Name search, choose Contains from the drop-down menu and enter Thomson Reuters as search name.


10: Click on the Search button on the top right. You will get a window with various Thomson Reuters Commodity price options. Scroll down to find the one that is relevant, and tick the box to the right of its name. Finally, click on Use Selected at the top. This will automatically navigate the DS mnemonic of the chosen items to Datastream Charting window.

12: Thomson Reuters Datastream has released an Excel User-Created Index (UCI) template with new functionalities for creating and editing indices. The template is as shown below.

User-Created Index FunctionUsing new version of the user-created indices (UCI) manager

11: First, make a list of the companies along with the DS Code or DS Mnemonic with which you want to create an index. Here we have the two lists of companies and their codes along with their Product Segment 1 Revenue as a % of total revenue. Once we classify and separate the companies, we can prepare indices with the two stock groups.

13: Copy and paste the DS code of the companies under the DS Code option in the template for which you want to create an index. This will automatically update the other information such as name, base date for the companies in the template. Feed an index name into Mnemonic at the top, along with a short Description and the Base Date for the index under the assigned cells. The name should be up to six characters and alphabetic.


14: After feeding all the information into the template, hit the Save UCI tab. You will get a UCI saving window to create the index. Now click OK at the bottom.

15: You will get a Datastream UCI upload widow which has the option for your preference setting options for the index. Set the Base Date, Base Value, Currency and Weighting methodology from the drop-down menu in the window and click the Next: set index datatypes tab.

16: A window to select the datatypes will appear. Add Price Index and other items in the right box from various options displayed in the left box and click the Finish: create index tab.


19: A blank Chart window will appear. You can create charts for multiple variables in the chart window. On the right side of the window there is an option to add variables in the chart. The arrow tab beside the box indicated below will take you to Datastream Navigator by clicking on Find new series where you can select a new variable for which you want to see a chart.

18: Now you can use the index created to plot charts and compare with the benchmark. Click on the Chart tab in the Datastream Navigator options.

17: This will generate an Index Detail window with all the information about the index created along with a time series chart of the index. On the top right of the window there is an option to create a chart for the index in Datastream Charting, where you can retrieve the chart in an Excel sheet or Word document directly.


ENHANCED SEARCH FUNCTIONALITY COMING SOON IN DATASTREAM NAVIGATOR

The Datastream content set continues to expand rapidly and evolve in terms of coverage. This increase poses new challenges for finding the series that best fit your needs – particularly with the Economics statistics. In order to search for series today, Datastream Navigator provides facilities to use either multiple criteria or explorer hierarchies to drill down to the required series.

The forthcoming version of Datastream Navigator is going a step further, by providing free text search functionality to retrieve the desired series. These new facilities will give you the necessary tools to display results faster with the larger universe of Datastream time series data.

You will be able to enter free text in the search field, and instantly see the top ten results matching your search, with the most relevant results listed at the top with stars indicating the highest ranked series (based on Microsoft’s latest search engine).

PRODUCT ENHANCEMENT

Image 1: Pre-release version

of the new interface


More detailed information on the series can be displayed underneath, for any of these top ten results. This information includes a chart with options to transform the series to yearly percentage, monthly changes percentage etc. Also displayed are the latest value, the history, source etc, plus any notes on the series, along with options to display the other series in the same explorer hierarchies as the selected series, in order to see closely related peer series.

From here you will be able to quickly filter down to display specific series using attributes such as source, market, frequency etc, using the filters on the left-hand side.

Look out for further announcements on this change.

Image 2: Filters to narrow down the results

Image 3: Spotlight showing

metadata on the series


DATASTREAM ECONOMICS POINT IN TIME

Thomson Reuters Economics Point in Time data is now available in Datastream. The Economics Point in Time database enables you to view economic data as it was originally reported upon release, then view how it changed over time. This information enables you to understand more accurately the impact that economic data has on the market.

Economics Point in Time supports your historical analysis and backtesting needs, so that you can better understand how likely your investment strategy is to succeed. It is available within our Thomson Reuters Datastream desktop platform, as well as via feed from the Datastream Data Loader.

In most economic databases, only the latest value is available. As a result, your model incorporates an erroneous assumption that this value is “as reported”. This assumption does not provide an accurate picture of how economics data might have impacted the market and investors’ decisions. Economics Point in Time brings greater precision to your analysis. The Economics Point in Time dataset provides:

• Up to ten years of history for key macroeconomic indicators for the G7 countries• Data value with a release date and reference period• Time series data for initial release, first and second revisions for the indicators• Ability to produce a vintage snapshot for an indicator

The Economics Point in Time data is accessible using datatypes, so you can quickly create a graphical view or download the values into Excel with ease.

The chart below shows the initial values (blue line) released by the source for Canadian Personal Consumption Expenditures and how the series looks today (red line) following the revisions issued subsequently by the source.



With the Economics Point in Time dataset you can create a vintage view of the data – ie see how the data looked at some point back in time. For example in the chart below, the blue line shows how the series looked back in January 2005 and the red line shows how the series looks today.

If you have any specific questions or issues, please contact:

Paritosh Patel – Product Manager (M I&A)Telephone: +44 (0)20 7542 0840 Email: [email protected]



DATASTREAM EQUITY CONTENT: MARKET VALUE BY COMPANY AVAILABLE AS A TIME SERIES

Market value by company (datatype MVC) and the equity shares outstanding at a company level (datatype NOSHC) are being released as a time series item for the G7, Scandinavian, Chinese and Hong Kong markets on Datastream in Q1 2011. Histories are calculated from start date 03.01.00, or the start date of the company if later.

Additionally, the newly created MVC history indicator flag (datatype MVCH) should be used to indicate whether MVC is available as a time series for a given company.

Market value by company (MVC)Market value by company is available as a time series for:

• US• Canada• UK• Germany• France• Japan• Italy• Denmark• Finland• Norway• Sweden• China• Hong Kong

Historical MVC – the sum of the shares outstanding at company level multiplied by the price of the primary quote – are available back to the start date of a company or the beginning of 2000, whichever is later.

CONTENT ENHANCEMENT


MVC history is calculated for all companies, irrespective of whether they comprise single or multiple securities. So for example MVC is provided for single-security company IBM, and the figure is identical to market value (datatype MV).

For each company, and for each eligible security of the company, the MVC history is provided on the primary quote codes only. Secondary quotes continue to display a static value, updated daily.

Companies which are fully dead (ie which do not have any active securities) at the time of the calculation of the MVC history, do not have an MVC history calculated.

For companies with a mixture of live and dead securities, a history has been calculated. These include the market value of eligible dead securities up to the date of their delisting. The history is available on the live securities only.

For companies with multiple securities and where the base dates of the securities are different, the MVC history starts at 03.01.00 or the earliest base. This is with the exception of China, where previously unquoted, state-held shares which have become quoted cannot be included in the calculation. In these instances, MVC begins from the most recent base date.

For companies with unquoted securities, the MVC history includes the unquoted securities in the calculation, but MVC history is provided on the primary quote code of the quoted security only, not on the unquoted security code. As with the current calculation, unquoted securities are valued using the prices of the associated quoted securities.

For dual-listed companies (DLC), the MVC history combines the companies from the start date of the DLC agreement until the end date of the DLC agreement (if any).

The history is subject to revision in the event of a retrospective change (for example correction or late update) to the price or number of shares outstanding historically of a primary quote code. The histories are automatically refreshed from the date of amendment.

Shares outstanding by company (NOSHC)Number of shares outstanding by company (NOSHC) is a new time series datatype, available since 20 February 2011, which retrieves the consolidated number of shares outstanding for a given company.

NOSHC is available under the same circumstances and wherever MVC is available as a time series.

Market value by company history indicator (MVCH)The market value by company history indicator retrieves the value 1 where MVC is available as a time series and 0 where it is not. This enables users to distinguish whether the MVC value is being retrieved as a value and date pair, or as the most recent value.


James Gwinnell – Equity Content Manager (M I&A)Telephone: +44 (0)20 7542 8451Email: [email protected]


EQUITY INDICES – UPDATE FOR FEBRUARY 2011

Recent additions to the Datastream Database include the release of MSCI ESG indices, CSI 300 constituent lists, German DAX Prime Sector indices, German Credit Suisse Global Alternative Energy indices, and additional indices from S&P/TSX and S&P 500.

GlobalMSCI ESG IndicesMSCI ESG index series are added to the current MSCI indices in Datastream. The new indices are calculated daily in local currency and are available for PI, RI, NR, MV, NE, MA and MD datatypes* from August 2010.

INDEX NAME MNEMONICMSCI World ESG MSWESGLMSCI World ex ESG MSWXUELMSCI EAFE ESG MSEESGLMSCI Europe ESG MSEUSGLMSCI North America ESG MSNMSGLMSCI Pacific ESG MSPFSGLMSCI United States of America ESG MSUESGLMSCI United States of America Large Cap ESG MSULSGLMSCI United States of America Mid Cap ESG MSUMSGLMSCI United States of America Small Cap ESG MSUSSGLMSCI United States of America: Z ESG United States Dollar MSUZSGLMSCI United States of America Investable Market ESG MSUISGLMSCI United States of America Broad ESG MSUBSGLMSCI Global Climate MSGLOCLMSCI USA Catholic Values MSUSACL

The KLD indices which were previously calculated and distributed by FTSE are now calculated and distributed by MSCI. History for these indices shall be retained.

*Expanded name of datatypes

INDEX NAME PREVIOUS MNEMONIC NEW MNEMONICMSCI USA ESG SELECT FTCKSEL MSCKSELMSCI KLD 400 SOCIAL FTCK4SL MSCK4SL

DATATYPES LONGER NAMEPI Price IndexRI Gross Total Return IndexNR Net Total Return IndexMV Closing Market CapNE Number of EquitiesMA Adjusted Market CapMD Initial Market Cap


S&P 500 Telecom & IT Indices – February 2011S&P 500 Telecom and IT equity indices are now available on Datastream.

The indices are available with datatypes as listed below.

German – Credit Suisse Global Alternative Energy – January 2011Thomson Reuters has released Credit Suisse Global Alternative Energy indices for Germany on Datastream.

Credit Suisse Global Alternative Energy – the index encompasses five sectors (Natural Gas, Wind, Solar, Bio-energy/Biomass and Geothermal/Hydropower/Fuel cells/Batteries). At the inception date and then at each rebalancing date, all five sectors will be capped to 20% to prevent individual sectors from dominating the index.

The index is calculated and maintained by Deutsche Börse based on rule-based methodology developed by Credit Suisse Private Banking Research.

The universe of Alternative Energy stocks includes companies of significant size, trading volume and access to stock exchange. The CSGAE will consist of the largest 30 Alternative Energy companies in this universe – six companies from each sector whose selection is based on a well-defined index rule book, which includes market capitalisation, free float and average daily volume. Thus, the CSGAE shortlists the most liquid and representative stocks in the Alternative Energy universe.

INDEX NAME MNEMONIC DATATYPE START DATES&P 500 TELECOM & IT S&PTLIT PI, RI, NE, IDV, MV 11.09.89

DATATYPE DESCRIPTIONPI Price indexRI Return indexNE Number of equitiesIDV Index divisorMV Market capitalisation

INDEX NAME MNEMONIC DATATYPE START DATECredit Suisse Global Alternative Energy (CHF) Index CSGBAEC PI 22.01.07Credit Suisse Global Alternative Energy (EUR) Index CSGBAEE PI 29.12.00Credit Suisse Global Alternative Energy (USD) Index CSGBAEU PI 29.12.00Credit Suisse Global Alternative Energy Index (Synthetic Price) CHF CSGAESC PI 29.12.00Credit Suisse Global Alternative Energy Index (Synthetic Price) EUR CSGAESE PI 29.12.00Credit Suisse Global Alternative Energy Index (Synthetic Price) USD CSGAESU PI 22.01.07Credit Suisse Global Alternative Energy Performance-Index (CHF) CSGAEPC RI 22.01.07 Credit Suisse Global 5 Energy Performance-Index (EUR) CSGAEPE RI 29.12.00Credit Suisse Global Alternative Energy Performance-Index (USD) CSGAEPU RI 29.12.00


Canada S&P/TSX Equity Indices – February 2011 Thomson Reuters has released additional Canada S&P/TSX Equity indices on Datastream.

S&P/TSX 60 Equal Weight IndexThe S&P/TSX 60 is the headline equity market index in Canada, representing blue-chip Canadian stocks. Its equal-weighted version equally weights all parent index constituents at every rebalance.

S&P/TSX Clean Technology IndexThe S&P/TSX Clean Technology Index measures the performance of companies listed on the TSX whose core business is in the development and deployment of green technologies and whose activities provide value-added solutions to environmental problems.

The indices are available with datatypes as listed below.

INDEX NAME MNEMONIC DATATYPE START DATES&P/TSX 60 EQUAL WEIGHT INDEX TTOSP6E PO, PH, PL, PI, RI, RW, PE, DY 04.06.10S&P/TSX CLEAN TECHNOLOGY INDEX TTOSPCT PO, PH, PL, PI, RI, RW, PE, DY 24.03.10

Middle EastKuwait Global Investment House Equity Indices – February 2011Kuwait Global Investment House Indices are now available on Datastream from February 2011.

Datatypes as listed below are released from 2 January 1984.

INDEX NAME MNEMONICKuwait Global Investment House Banking KUGIHBNKuwait Global Investment House Food KUGIHFDKuwait Global Investment House General KUGIHGNKuwait Global Investment House Industrial KUGIHIDKuwait Global Investment House Insurance KUGIHISKuwait Global Investment House Investment KUGIHIVKuwait Global Investment House Kuwaiti KUGIHKTKuwait Global Investment House Large Cap KUGIHLCKuwait Global Investment House Non-Kuwaiti KUGIHNKKuwait Global Investment House Real Estate KUGIHREKuwait Global Investment House Service KUGIHSRKuwait Global Investment House Small Cap KUGIHSC

DATATYPE DESCRIPTIONPO Price OpenPH Price HighPL Price LowPI Price Index


EuropeGerman DAX Prime Sector Equity Indices – February 2011Thomson Reuters has released additional datatypes for German Prime Sector Equity Indices – Market Value (MV) and Number of Equity (NE) on Datastream.

The indices are updated around 22:30 GMT on Datastream. Market value and number of equity datatypes are available as listed below.

INDEX NAME MNEMONIC DATATYPE START DATEDAX Automobile (Xetra) PRIMAUT MV, NE 30.12.02DAX Banks (Xetra) PRIMBNK MV, NE 30.12.02DAX Basic Resources (Xetra) PRIMRES MV, NE 30.12.02DAX Chemicals (Xetra) PRIMCHM MV, NE 30.12.02DAX Construction (Xetra) PRIMCON MV, NE 30.12.02DAX Consumer (Xetra) PRIMCYC MV, NE 30.12.02DAX Financial Services (Xetra) PRIMFIN MV, NE 30.12.02DAX Food and Beverages (Xetra) PRIMBEV MV, NE 30.12.02DAX Industrial (Xetra) PRIMIND MV, NE 30.12.02DAX Insurance (Xetra) PRIMINS MV, NE 30.12.02DAX Media (Xetra) PRIMMED MV, NE 30.12.02DAX Pharmaceutical and Healthcare (Xetra) PRIMHLT MV, NE 30.12.02DAX Retail (Xetra) PRIMRET MV, NE 30.12.02DAX Software (Xetra) PRIMSFT MV, NE 30.12.02DAX Technology (Xetra) PRIMTCH MV, NE 30.12.02DAX Telecommunications (Xetra) PRIMTEL MV, NE 30.12.02DAX Transport and Logistic (Xetra) PRIMTRN MV, NE 30.12.02DAX Utilities (Xetra) PRIMUTL MV, NE 30.12.02

INDEX NAME MNEMONIC DATATYPE START DATEDAX Advanced Industrial Equipment IG PRIMAIP MV, NE 21.03.03DAX Advertising IG PRIMADP MV, NE 21.03.03DAX Airlines IG PRIMALP MV, NE 21.03.03DAX Auto Parts and Equipment IG PRIMAPP MV, NE 21.03.03DAX Automobile Manufacturers IG PRIMAMP MV, NE 21.03.03DAX Beverages IG PRIMBVP MV, NE 21.03.03DAX Biotechnology IG PRIMBIP MV, NE 21.03.03DAX Broadcasting IG PRIMBDP MV, NE 21.03.03DAX Building Materials IG PRIMBMP MV, NE 21.03.03DAX Chemicals, Commodities IG PRIMCCP MV, NE 21.03.03DAX Chemicals, Specialised IG PRIMCSP MV, NE 21.03.03DAX Clothing Footwear IG PRIMCFP MV, NE 21.03.03DAX Communications Technology IG PRIMCTP MV, NE 21.03.03DAX Consumer Electronics IG PRIMNEP MV, NE 21.03.03DAX Construction and Engineering IG PRIMCEP MV, NE 21.03.03DAX Containers and Packaging IG PRIMCPP MV, NE 21.03.03DAX Credit Banks IG PRIMCBP MV, NE 21.03.03DAX Diversified Finance IG PRIMDFP MV, NE 21.03.03

DAX Standard Sectors Indices

DAX Standard Industry Group Indices


INDEX NAME MNEMONIC DATATYPE START DATEDAX Electronics Components and Hardware IG PRIMECP MV, NE 21.03.03DAX Electricity IG PRIMELP MV, NE 21.03.03DAX Fixed-Line Telecommunications IG PRIMFTP MV, NE 21.03.03DAX Food IG PRIMFDP MV, NE 21.03.03DAX Forest and Paper Products IG PRIMFPP MV, NE 21.03.03DAX Healthcare IG PRIMHCP MV, NE 21.03.03DAX Heavy Machine IG PRIMHMP MV, NE 21.03.03DAX Home Construction and Furnish IG PRIMHFP MV, NE 21.03.03DAX Household Appliances and Housewares IG PRIMHAP MV, NE 21.03.03DAX Industrial, Diversified IG PRIMIDP MV, NE 21.03.03DAX Industrial Gases IG PRIMIGP MV, NE 21.03.03DAX Industrial Machine IG PRIMIMP MV, NE 21.03.03DAX Industrial Products and Services IG PRIMIPP MV, NE 21.03.03DAX Insurance IG PRIMISP MV, NE 21.03.03DAX Internet IG PRIMINP MV, NE 21.03.03DAX Information Technology Services IG PRIMITP MV, NE 21.03.03DAX Leisure Goods and Services IG PRIMLGP MV, NE 21.03.03DAX Logistics IG PRIMLOP MV, NE 21.03.03DAX Medical Technology IG PRIMMTP MV, NE 21.03.03DAX Mining IG PRIMMNP MV, NE 21.03.03DAX Mortgage Banks IG PRIMMBP MV, NE 21.03.03DAX Movies and Entertainment IG PRIMMEP MV, NE 21.03.03DAX Multi-Utilities IG PRIMMUP MV, NE 21.03.03DAX Oil and Gas IG PRIMOGP MV, NE 21.03.03DAX Personal Products IG PRIMPPP MV, NE 21.03.03DAX Pharmaceuticals IG PRIMPHP MV, NE 21.03.03DAX Publishing and Printing IG PRIMPUP MV, NE 21.03.03DAX Real Estate IG PRIMREP MV, NE 21.03.03DAX Real Estate-Insurance IG PRIMRNP MV, NE 21.03.03DAX Renewable Energy IG PRIMRWP MV, NE 21.03.03DAX Retailers, Internet IG PRIMRIP MV, NE 21.03.03DAX Retailers, Multi-Line IG PRIMRMP MV, NE 21.03.03DAX Retailers, Specialised IG PRIMRSP MV, NE 21.03.03DAX Retailers, Catalogue IG PRIMRCP MV, NE 21.03.03DAX Retailers, Food Drug IG PRIMRFP MV, NE 21.03.03DAX Securities BRKS IG PRIMSBP MV, NE 21.03.03DAX Semiconductor IG PRIMSCP MV, NE 21.03.03DAX Software IG PRIMSWP MV, NE 21.03.03DAX Steel and Other Metals IG PRIMSOP MV, NE 21.03.03DAX Telecommunication Services IG PRIMCMP MV, NE 21.03.03DAX Transportation Services IG PRIMTSP MV, NE 21.03.03DAX Water IG PRIMWAP MV, NE 21.03.03DAX Wireless Telecommunications IG PRIMWTP MV, NE 21.03.03DAX REIT IG PRIMRTP MV, NE 21.03.03DAX Private Equity and Venture Capital PRIMPVP MV, NE 21.03.03

DATATYPE DESCRIPTIONMV Market ValueNE Number of Equity


AsiaChina – CSI 300 Constituent Lists – October 2010CSI 300 constituent lists are now available on Datastream. Constituent list datatypes include weightings (WTIDX).

Month-end constituent lists are stored from February 2010.

NAME DS MNEMONICChina Securities 300 LCHSS300


DATASTREAM ECONOMICS CONTENT NEWS DATASTREAM + ECOWIN – EUROPEAN POWERHOUSE

Thomson Reuters has completed the combining of Datastream and EcoWin content into a single, comprehensive Economic database of 2.3 million series. Nearly one million of those form a powerhouse of statistics for the Euro Area, European Union and member states. The bulk of the coverage is newly available and from Eurostat, the statistical office of the European Union, encompassing these themes:

• Economy and Finance – macro statistics on balance of payments, government finance, national and sector accounts, prices and purchasing power parities

• External Trade• Industry, Trade and Services – production indexes, producer prices, construction permits and price indexes

for new residential buildings, labour input and cost indexes, new orders, wholesale and retail turnover• Environment and Energy, Transport• Population and Social Conditions The European Commission’s Directorate General for Economic and Financial Affairs conducts regular tendency surveys for sectors of the EU economies. The resulting statistics are leading indicators and the most followed consumer and business confidence indexes for the EU and members. Complete coverage is now available, providing:

• Consumer confidence, with detail by age, education, income and other subgroups • Business confidence from representatives of the industry/manufacturing, services, retail trade and

construction sectors• Investment survey results including plans by structure and type of goods• Economic Sentiment Index (ESI) – a composite of consumer and business climate indicators The European Central Bank produces statistics on the Eurosystem in support of monetary policy and its role as central banker for the euro. Coverage on Datastream includes:

• Monetary aggregates and weekly financial statement• Economic and financial developments and flows by institutional sector• MFI balance sheets, loan and deposit volumes and interest rates• Securities and Investment Fund statistics• Bank Lending Survey of senior loan officers, providing expectations for credit and loans

The first phase of the Datastream + EcoWin project brought together nationally sourced series for 118 markets by early 2010. That set totals about 313,000 and contains the indicators released and discussed in the economic press in addition to component detail. The second phase involved the addition of just over 1.3 million series from third-party sources – with the majority coming from Eurostat as discussed above. The other datasets are listed below with links to announcements where you’ll find descriptions of the content:


CONTENT UPDATE # SOURCE AND DATASET4192 Baker Hughes Oil Rig Database4191 British Petroleum World Energy Database4284 European Commission Survey Series4268 Eurostat Series4215 IMF Direction of Trade Series4182 IMF World Economic Outlook (WEO) Database4195 OECD Annual National Accounts Database4250 OECD National Accounts Complementary Series4232 US Bureau of Economic Accounts Series4149 US Bureau of Labor Statistics Series4184 US MBA Delinquency & Foreclosure Series by State4244 World Bank Development Finance (GDF) Database4222 World Bank Development Indicators (WDI) Database

All the series can be found in the Economics Explorer on Navigator.

http://extranet.datastream.com/ContentUpdate/detail.asp?MainID=4192














EURO AREA MEMBERSHIP AT 17 – EURO AREA PROFILE IN EXPLORER

Euro Area (EA) membership numbers 17 nations effective from 1 January 2011, when Estonia adopted the euro as its legal tender. Euro Area totals on Datastream currently reflect 1) the EA definition as it evolved over time – area code EM in series mnemonics; or 2) a fixed EA definition with consistent history – area code EK; or 3) the different compositions over time. Over the course of the next several months, national and international sources will modify aggregate series to reflect the new composition. Changes will take place in the Economics database as described below.

The Euro Area series in the National Source section of the Economics Explorer have been reviewed and lists modified to provide more series and a basic economic profile of the EA. In addition, the Press Release section has been added, showing concepts contained in those timely publications. These series come from the sources discussed above – European Central Bank, European Commission and Eurostat – and others providing market indexes for the area.

As agencies begin to publish the new 17-member EA definition, the following will occur for the profile series:

• The EM series will simply be updated with the new aggregate values for January 2011 and forward. EM history will continue to reflect 11 members from January 1999 to December 2000, 12 from January 2001, 13 from January 2007, 15 from January 2008 and 16 from January 2009.

• The EK series under the national profile will be historically revised with data from the official sources and thereafter reflect an aggregate of 17. In cases where the source provided less history, start dates will be changed so the entire history is on a consistent definition. EA17 will be added to the series name to indicate it is on the new basis. And the 16-member aggregate data will be preserved under market code Z5.

The first observations of 2011 will be released as per this schedule:

27 January Consumer and business surveys31 January Flash estimate of HICP25 February Money supply28 February Inflation1 March Unemployment2 March PPI3 March Retail trade14 March Industrial production17 March Construction output18 March Monthly balance of payments18 March Foreign trade23 March New orders13 May Flash estimate of GDP8 June GDP/National Accounts16 June Employment 20 June Labour costs


COMMODITIES AND ENERGY

LME Asian BenchmarksThomson Reuters has released London Metal Exchange Asian Benchmark reference prices for three-month copper, aluminium and zinc markets on Datastream.

It is based on trading activity on the Exchange during the Asian time zone. The new Asian Benchmark prices, a set of three-month futures prices, will act as regional indicators and bring added transparency to these markets.

• New reference prices will provide the market with Asian trading indicators and add transparency on base metals prices in the region.

• Asian Benchmark prices to complement existing official, unofficial and closing prices.

Datastream has expanded considerably its coverage of steel in the last few years and now offers prices from exchange-traded sources such as LME, Multi Commodity Exchange in India and Shanghai SE, as well as OTC sources including Metal Bulletin, Platts, Steel Business Briefing, CRU, Metal Expert and specialised local market quotes such as Asian Metal and Steel Home from China.

Adding to those sources, Datastream has now included prices from The Steel Index (TSI), a premier resource for independent steel, scrap and iron ore reference prices worldwide. TSI publishes weekly reference prices for a range of steel products in the USA, Northern and Southern Europe, Turkey and Asia, with prices based on actual transactions, collecting data from over 500 companies which submit their prices confidentially. Histories are available from mid-2006.

MNEMONIC TITLE DATATYPE BASE DATELAH3MAB LME 3-Month Aluminium Asia Benchmark U$/MT UF 24.01.11LCP3MAB LME 3-Month Copper Asia Benchmark U$/MT UF 24.01.11LZZ3MAB LME 3-Month Zinc Asia Benchmark U$/MT UF 24.01.11

Steel Prices from The Steel Index


The Nikkei-TOCOM Commodity IndexThe Nikkei-TOCOM Commodity Index is based on the price of all the listed commodities at TOCOM for each market division (precious metals, aluminium, oil and rubber) and therefore gives an overall indication of the price levels on the TOCOM market as a whole. The Nikkei-TOCOM Index is the first comprehensive commodity index developed and published by a commodity futures exchange in the world.

The index is composed of all the TOCOM listed commodities and has a weight percentage for each component based on the relative size of the cash and futures market, which is multiplied by the fluctuation rate of each component’s settlement price in the core contract month (fifth or sixth contract month), from base date (31 May 2002) to the applicable date, and is the aggregated figure of all the components.

The New Fisher: Bank of Canada Commodity IndicesThe prices of commodities produced in Canada have important implications for the performance of the Canadian economy. Given Canada’s substantial comparative advantage in natural resource production, changes in commodity prices reflect important relative price changes that significantly affect the allocation of resources and production in the Canadian economy. The interpretation of commodity market developments is therefore critical for the conduct of monetary policy, and requires an accurate measure of overall commodity price movements.

MNEMONIC TITLE BASE DATE SOURCE CURRENCY FREQUENCYTOCOMID Nikkei-TOCOM Commodity Index 30.05.86 TCE Japanese Yen Daily


The new Bank of Canada commodity price index (BCPI) is a chain Fisher price index of the spot or transaction US dollar prices of 24 commodities produced in Canada and sold in world markets, with weights updated on an annual basis. The new index is a more-comprehensive, flexible and accurate means of measuring changes in global prices for commodities produced in Canada, and effectively replaces the previous fixed-weight Bank of Canada commodity price index (FWBCPI) incorporating 23 commodities, whose weights were updated infrequently.

Weekly updated indices with full histories are available commencing from January 1972.

MNEMONIC DESCRIPTIONBCPITOT Bank of Canada Weekly Total IndexBCPIEXC Bank of Canada Weekly Excluding EnergyBCPINRG Bank of Canada Weekly Energy IndexBCPIMET Bank of Canada Weekly Metals and Minerals IndexBCPIFOR Bank of Canada Weekly Forestry IndexBCPIAGR Bank of Canada Weekly Agriculture IndexBCPIFIS Bank of Canada Weekly Fish Index


Oil Market Report Rhine Freight RatesThomson Reuters has released Oil Market Report Rhine Freight Rates for Gas Oil and Motor Gasoline (MoGas) barges.

The Rhine Freight Rates give shipping price information for Gas Oil and MoGas river transport to six major European ports. They are: Basel, Cologne, Dortmund, Duisburg, Frankfurt and Karlsruhe.

Oil Market Report (OMR) has been an independent provider of news and quotes to the German oil industry and the European oil industry since 1985. OMR publishes prices for all major products; for cargoes cif NWE and for barges fob ARA; also inland price quotations free on truck covering the main refinery/storage centres of Germany. Prices cif Basel are also reported. A measure of OMR’s success in gaining the respect of major market participants is that its prices are used in contracts and by institutions.

MNEMONIC EXPANDED NAMEGOFDUIS Gas Oil Barge Rates, Rhine to Duisburg 1000>1200MT €/MTMOFDUIS MoGas Barge Rates, Rhine to Duisburg 1000>1200MT €/MTGOFDORT Gas Oil Barge Rates, Rhine to Dortmund 1000>1200MT €/MTMOFDORT MoGas Barge Rates, Rhine to Dortmund 1000>1200MT €/MTGOFKOLN Gas Oil Barge Rates, Rhine to Cologne 1000>1200MT €/MTMOFKOLN MoGas Barge Rates, Rhine to Cologne 1000>1200MT €/MTGOFFRNK Gas Oil Barge Rates, Rhine to Frankfurt 2000MT €/MTMOFFRNK MoGas Barge Rates, Rhine to Frankfurt 2000MT €/MTGOFKARL Gas Oil Barge Rates, Rhine to Karlsruhe 2000MT €/MTMOFKARL MoGas Barge Rates, Rhine to Karlsruhe 2000MT €/MTGOFBASL Gas Oil Barge Rates, Rhine to Basel 2000MT CHF/MTMOFBASL MoGas Barge Rates, Rhine to Basel 2000MT CHF/MT

Updated daily with bid (PB), ask (PA) and Datastream mid calculated price (DSP) with histories available from October 2004.

World Bunker Fuel Prices Datastream has expanded considerably its coverage of bunker fuel prices (technically bunker fuel is any type of fuel oil used aboard ships) to cover regional prices from Asia (Korea, Japan, Hong Kong and Taiwan), Europe (Germany, Holland and Denmark), Middle East (Saudi Arabia), Africa (South Africa) and North America (USA).

Quotes on offer are for Bunker 380 (380 Centistoke Bunker Fuel), BUNK 180 (180 Centistoke Bunker Fuel), MDO (Marine Diesel Oil) and MGO (Marine Gas Oil).

An additional 42 time series are now freely available to all Datastream clients, with histories starting as early as 1986 on some series, updated daily with bid (PB), ask (PA) and Datastream mid calculated price (DSP).


Belgian Electricity Prices Thomson Reuters has released Belpex – Belgian Power Exchange series – on Datastream with history commencing in 2006 with close prices in €/MWh and volume data.

Belpex is the short-term, physical power exchange for the delivery and off-take of electricity on the Belgian hub and a full subsidiary of APX-ENDEX. Belpex facilitates anonymous, cleared trading in two different market segments, namely the Day-Ahead Market segment (DAM) and the Continuous Intraday Market segment (CIM). The Belpex DAM provides standardised products (hourly instruments) for producers, distributors, industrial groups, traders and brokers to sell and purchase electricity to be delivered the day after. The Belpex DAM is coupled with APX-ENDEX in the Netherlands and EPEX Spot in France and Germany.

New Biofuels ContentBiodiesel is the name of a clean-burning alternative fuel, produced from renewable resources. Biodiesel contains no fossil fuel, but it can be blended at any level with petroleum diesel to create a biodiesel blend. Biodiesel is simple to use, biodegradable, non-toxic and, if pure and unadditivated, essentially free of sulphur and aromatics.

The most commonly used feedstocks are rapeseed, soybean and palm oil. Corn and tallow are also used. Rapeseed methyl ester (RME) is mainly produced in Europe, soybean methyl ester (SME) comes mainly from the Americas and palm methyl ester (PME) from Asia.

Fatty acid methyl ester (FAME) refers to European blends of biodiesel. These blends contain different quantities of the pure vegetable and/or tallow oil methyl esters depending on the cold filter plugging point (cfpp) desired.

Asian biodiesel is made mostly from palm oil (PME). Palm oil producing countries such as Malaysia and Indonesia are the main Asian biodiesel producers.


Three new sources have been added to the Datastream product:

• Sugar, FAME, PME and RME are provided by Kingsman, which is well known throughout the industry for its reliable and independent market reports, which are widely used as a benchmark in the fixing of contract prices between industry participants. Kingsman advises many of the world’s sugar and biofuels producers and industrial users, as well as banks, trade houses, oil companies, private equity and hedge funds.

• FAME, SME, RME, PME, glycerine and methanol quotes are provided by HBI brokers, who specialise in biodiesel, glycerine and fatty acids.

• FAME, RME and PME content is provided by Oil Brokerage, which covers biodiesel physical and paper contracts on all grades, physical gasoline and MoGas swaps.

Prices are updated on a weekly basis, with histories commencing in January 2007.

Volatility Indices Implied volatility is a key driver of options prices, and volatility indices help investors gauge how expensive they are. New volatility indices added to Datastream include the Russian RTS stock market index. In addition the Chicago Board Options Exchange has used the same methodology to create volatility indexes for five companies.

MNEMONIC VOLATILITY INDEX VXAPLVL Apple VXAZNVL Amazon VXGSVOL Goldman Sachs VXGOGVL Google VXIBMVL IBM RTSVXVL Russia RTS Index CVOLEVL Citi Excess ReturnCVOLTVL Citi Total Return


THOMSON REUTERS PRICING SERVICE EVALUATED PRICES NOW AVAILABLE FOR OVER 110,000 FIXED INCOME SECURITIES

Proven high-quality prices from the Thomson Reuters Pricing Service (TRPS) for over 110,000 fixed income securities in 32 bond markets have been added to Datastream.

TRPS evaluated prices are provided daily for a global universe of fixed income securities, using evaluation models developed and maintained by the renowned EJV fixed income development team at Thomson Reuters. Dealer quotes are obtained from the extensive IDN contributions network, supplemented by direct market relationships between evaluators and sell-side participants.

TRPS prices are used in other premium Thomson Reuters fixed income products such as Eikon, 3000Xtra and DataScope. More detailed information is available at the end of this article.

New Datastream price datatypesThe following additional time series price datatypes are available in Datastream products:

• TRPB – Thomson Reuters Price Service Evaluated Bid• TRPA – Thomson Reuters Price Service Evaluated Ask• TRPM – Thomson Reuters Price Service Evaluated Mid

Improvement to default prices and MPD datatype used to calculate Datastream yields, Datastream bond indices and Datastream stored yield curvesExisting default price logic (as used in datatype MPD and for yield calculations) has been improved to use Thomson Reuters Composite bid prices as primary source where available, followed by Thomson Reuters Evaluated bid prices where available, Iboxx prices and finally local market price sources. This will deliver the best and most liquid price available for all fixed income securities in Datastream.

Limited TRPS price historyTRPS pricing data is available from 1 December 2010 on an ongoing basis. Additional history prior to this date is not available at this point.

Details of MPD datatype and default price selection rulesThe following priority is used to select the best “default” price to use in calculations in Datastream sourced products:

1: MPD will retrieve the Thomson Reuters Composite bid price CMPB, if the price is defined as liquid (ie a price change has occurred within the last five business days).

2: MPD will retrieve the Thomson Reuters Evaluated bid price TRPB, if the price is defined as liquid (ie a price change has occurred within the last five business days).

3: MPD will retrieve the iBoxx mid price IBOX, if the price is defined as liquid (ie a price change has occurred within the last five business days).

4: If the CMPB, TRPB or IBOX mid prices above are not available, or do not meet the liquid criteria, then a local market specific “default” price will be retrieved (if one exists). These prices are set according to the best sources for a given market.


5: If there is no specific “default” price set, then historical average mid prices ICMA are used.6: If no ICMA average mid price exists, the MP price is returned (usually the primary stock exchange).7: If no MP price is available, then the historical traded MPTX price is used.8: If none of the above prices is available with base date on the day of retrieval, then the illiquid TRPB

price will be used.

Datastream Fixed Income Price Sources

REGIONAL MARKETS SOURCE CODE DESCRIPTION PRICE TYPE DATATYPEGlobal Thomson Reuters Pricing Service Bid TRPBGlobal Thomson Reuters Pricing Service Mid TRPMGlobal Thomson Reuters Pricing Service Ask TRPAGlobal Iboxx Bid IBXBGlobal Iboxx Mid IBOXGlobal Iboxx Ask IBXAAmericas Thomson Reuters Composite (New York) Bid CMPBAmericas Thomson Reuters Composite (New York) Mid CMPMAmericas Thomson Reuters Composite (New York) Ask CMPAAsia Thomson Reuters Composite (Tokyo) Bid CMPBAsia Thomson Reuters Composite (Tokyo) Mid CMPMAsia Thomson Reuters Composite (Tokyo) Ask CMPAEMEA Thomson Reuters Composite (London) Bid CMPBEMEA Thomson Reuters Composite (London) Mid CMPMEMEA Thomson Reuters Composite (London) Ask CMPA

LOCAL MARKETS SOURCE CODE DESCRIPTION PRICE TYPE DATATYPEAustralia Market Maker Mid MPAustria Vienna SE Close MPBelgium Brussels SE Close MPBelgium (OLO Govt) Securities Regulation Fund Bid MPCanada Thomson Reuters Pricing Service Bid MPCanada Thomson Reuters Pricing Service Ask MP1Czech Republic Thomson Reuters Pricing Service Mid MPDenmark Copenhagen SE Close MPEurobonds Thomson Reuters Pricing Service Mid TRPMEurobonds Thomson Reuters Pricing Service Bid TRPBEurobonds Thomson Reuters Pricing Service Ask TRPAFinland Thomson Reuters Pricing Service Close MPFrance Paris SE Close MPFrance (BTAN Govt) Thomson Reuters Pricing Service Close MPFrance (T-Bills) Thomson Reuters Pricing Service Mid MPFrance (T-Bills) Thomson Reuters Pricing Service Ask TWPAFrance (T-Bills) Thomson Reuters Pricing Service Bid TWPBGermany Berlin SE Close MP4Germany Dusseldorf SE Close MP5Germany Frankfurt SE Close MP2Germany Stuttgart SE Close MP3Germany Munich SE Close MP6Germany Hamburg SE Close MP9Germany Hanover SE Close MP7Germany (T-Bills) Thomson Reuters Pricing Service Mid MPGermany (T-Bills) Thomson Reuters Pricing Service Ask TWPAGermany (T-Bills) Thomson Reuters Pricing Service Bid TWPBGreece Bank of Greece Close MPHong Kong Hong Kong SE Close MP


LOCAL MARKETS SOURCE CODE DESCRIPTION PRICE TYPE DATATYPEHungary Budapest SE Close MPIreland Thomson Reuters Pricing Service Mid MPItaly Milan SE Close MPItaly Milan SE (Riferimemto) Ask MP1Japan Tokyo SE Close OPJapan Osaka Close MP1Japan Nagoya SE Close MP2Japan JSDA Close MPLuxembourg Luxembourg SE Close OPMalaysia Kuala Lumpur SE Close MPNetherlands Amsterdam SE Close MPNew Zealand Market Maker Mid MPNew Zealand (CVs) New Zealand SE Mid MPNorway Oslo SE Close MPPoland Warsaw SE Close MPPortugal Lisbon SE Close MPRussia MICEX Close MPSingapore Singapore SE Close MPSouth Africa (Prices) Thomson Reuters Pricing Service Close MPSouth Africa (Yields) Bond Exchange South Africa Bid Yield BYSpain (Corp) AIAF (MEFF) Close MPSpain (Govt) Banco de Espana Close MPSpain (Letras & Bonos) Thomson Reuters Pricing Service Close MPSweden Thomson Reuters Pricing Service Close MPSweden (Yields) Thomson Reuters Pricing Service Bid Yield BYSwitzerland Swiss SE Close MPTaiwan Gre Tai SE Close MPUnited Kingdom Gemma Close MPUnited Kingdom London SE Close OPUnited Kingdom London SE Close MPUnited Kingdom (Debs & Bulldogs) Thomson Reuters Pricing Service Mid MPUnited States Thomson Reuters Pricing Service Mid MP1United States Thomson Reuters Pricing Service Bid MPUnited States Thomson Reuters Pricing Service Ask MP2


Paul Godden – Fixed Income Content Manager (M I&A)Telephone: +44 (0)20 7542 1960 Email: [email protected]

Mark Farmer – Fixed Income Timeseries (Enterprise)Telephone: +44 (0)20 7068 4144Email: [email protected]


Thomson Reuters Pricing Service – Detailed InformationThomson Reuters Pricing Service meets your need for validated end-of-day evaluated prices to support portfolio, fund and single security valuations. One hundred fixed income professionals in New York, London, Tokyo, Singapore, Sydney and Bangalore provide evaluated prices on over two million taxable and non-taxable issues, including government, corporate and convertible bonds.

Evaluations are available daily at all industry standard valuation cut-off times. Customers include banks, brokers, insurance companies, mutual funds, fund administrators, custodians and software vendors. Evaluations are used for net asset value calculations, research, statement processing, portfolio valuation and risk management.

Thomson Reuters pricing methodologies incorporate bond terms and conditions, proprietary pricing models and real-time quotes from contributing dealers. Evaluations are produced by expert staff with market experience working to rigorous quality assurance procedures. Terms and conditions are collected and maintained by our global team of data analysts.

Evaluation models are developed and maintained by the renowned EJV fixed income development team at Thomson Reuters. Dealer quotes are obtained from our extensive IDN contributions network, supplemented by direct market relationships between evaluators and sell-side participants.

What is an evaluated price?It is an assessment at a specific time of the fair market value of a security. Evaluated prices provide a superior price compared to composite or contributed prices, which may be out of date at the valuation cut-off.

The fair market value assessment is consistent with the accounting guidelines outlined in FAS 157 and IAS 39, and takes into account:

• dealer quotes and trade prices• the inherent risk of each security including credit, prepayment, industry, market and liquidity• the terms and conditions of each security• prices of other instruments by the same issuer, or issuers of similar industry sector

Pricing methodologyThomson Reuters produces evaluations using two primary methodologies: model and “dollar” pricing. Most issues are priced by the model approach, which incorporates risk-free benchmarks, credit spreads, option adjustments and liquidity premiums.

Thomson Reuters evaluators adjust the inputs for each issue according to daily market movements, rather than relying on algorithms or automated contributions. The result is superior accuracy compared to matrix-based pricing or other purely model-based approaches.

Dollar pricing is applied mainly to issues that are unique in their structure, or to high-yield securities, particularly when the issuer of those securities has defaulted on a bond or has fallen below investment grade. These issues are individually priced. Inputs include quotes from the primary dealer and other market makers, and traded prices in the security or related benchmark issues.

Price challengesThe ability to challenge prices is an important part of Thomson Reuters’ customer service. Thomson Reuters evaluators respond to your price challenges prior to the next day’s pricing cycle and customers are encouraged to discuss pricing levels directly with evaluators.


Service and qualityThomson Reuters evaluators and analysts work to a series of metrics relating to:

• new issue timeliness• new issue accuracy• pricing accuracy• factor accuracy and timeliness• price challenge response times• customer satisfaction with quality of response

Thomson Reuters pricing models include a series of intra-day and end-of-day quality and tolerance checks to ensure price accuracy. A daily tolerance report is distributed that alerts you to any price moves outside usual tolerances.

To give you additional insight into market moves for the day and help you anticipate how your portfolio will move, Thomson Reuters Pricing Service also produces a daily commentary that outlines major market moves and trading information.

Valuation RiskThomson Reuters evaluated prices are part of the Valuation Risk offering from Thomson Reuters. The credit crunch and ensuing global financial crises have raised new challenges for our customers in valuing their assets and assessing their exposure to the marketplace.

Thomson Reuters has a number of compelling propositions, which will help you understand and manage your exposure across the enterprise:

• Thomson Reuters Pricing Service to value existing assets• Comprehensive reference and counterparty data through Thomson Reuters DataScope to assess market

and credit risk• Thomson Reuters risk solutions, market data platforms and analytics libraries to integrate proprietary

data and models alongside those provided by vendors and third parties

This combination enables your organisation to achieve transparent, consistent and accurate valuations from front to back office and ensure that all users of that information across the enterprise are supported by common underlying data and pricing. As a result you will be better placed to comply with regulatory requirements, manage your exposures and maximise risk-adjusted returns.

ASSET CLASS COVERAGE METHODOLOGYInvestment Grade All Australasian, EMEA and American markets Evaluated on nominal spread,

discount margin or OAS basis depending on how the market trades a security or sector.

High Yield Major markets priced on customer request Individually evaluated, mostly on a price basis using the lead underwriter as primary source of information.

Emerging Markets Major markets priced on customer request Evaluated on spread or price basis.Money Markets T-Bills Evaluated on spread or discount

rate basis.Convertible Bonds Convertible Bonds and Convertible Preferred Stocks Thomson Reuters internal

convertible pricing model uses dealer quotes and a delta model incorporating a real-time equity feed.

Global: Asia-Pacific, EMEA, Americas


ASSET CLASS COVERAGE METHODOLOGYTreasuries Bills, Notes, Bonds, STRIPS Thomson Reuters receives daily

valuations on bills, notes, bonds and STRIPS from multiple contributors.

Agencies Discount Notes, Bonds, Medium-Term Notes Agencies individually evaluated on an OAS basis or nominal spread for non-callable issues.

Fixed-Rate Mortgage Pools

Adjustable-Rate Mortgage Pools

Hybrid – Adjustable Rate Mortgage Pools

Agency CMO

GNMA, FNMA, FHLMC: TBA, Fixed Rate, Balloon and Graduated Payment

GNMA, FNMA, FHLMC: COFI, CMT, LIBOR, MTA

GNMA, FNMA, FHLMC: 3-1, 5-1,7-1, 10-1

GNMA, FNMA, FHLMC: Fixed Rate, IO/PO (Interest Only/Principal Only) Simple and Complex Floaters and Inverse Floaters

All seasoned pools are priced off MBS TBA prices. TBA prices are obtained from market makers and live trading systems. Seasoned quotes are obtained from dealer community and trade prices.

Individually evaluated on a BEEM (Bond Equivalent Effective Margin) basis.

Priced by Z spread to balloon date.

Individually evaluated using OAS and nominal spread. OAS valuations use the Andrew Davidson prepayment model and Thomson Reuters OAS calculator. Cash flows are calculated internally.

Americas

Contact details for Thomson Reuters Pricing Services:

Americas [email protected], Middle East and Africa [email protected] Pacific [email protected]


WORLDSCOPE – EXPANSION OF COVERAGE USING DATA SOURCED FROM REUTERS FUNDAMENTALS

The active company population of the Worldscope database, the source of Fundamentals data in Datastream, is to be increased by approximately 25% as a result of data being mapped into Worldscope from the Reuters Fundamentals database.

This process of coverage expansion began on 29 November 2010 and is scheduled to be completed by the end of March 2011.

The dataset provided is similar to that already used for limited dataset companies. Full details are provided in the newly updated Worldscope Data Definitions Guide, a link to which may be found in the Guides and Other Useful Documents section on the Worldscope page of the Datastream Extranet at: http://extranet.datastream.com/Data/Worldscope/index.htm

In total, data on over 8,000 active companies will be added and 2,174 had been added by 5 January 2011, the date of the Company Additions to Worldscope table in this edition of Infostream.

As a result of this exercise, data on the following markets will be added to Worldscope for the first time:

In addition, new companies will be added to over 60 markets already covered by Worldscope. Particularly noteworthy is the great expansion being made in markets such as Russia, Ukraine and other East European markets, some Middle Eastern and African markets such as Egypt, Israel and Botswana, and also Vietnam – all requested by Worldscope clients. Also some 1,500 companies on the Canadian Venture Exchange will be added.

Other key features of the new data are:

• Up to five years’ annual and interim data is being added initially, and this will of course grow over time.• The data provided will be at company-level only, not security-level.• The companies added will be mainly publicly traded, but there will also be some private companies

and others that trade only preferred or debt securities.• Datastream Equities datatypes which incorporate Worldscope data, such as PC and PTBV, are also

being generated for these companies.

Algeria Fiji Montenegro Bahamas Georgia Namibia Barbados Ghana Palestine Bolivia Guatemala Panama Bosnia and Herzegovina Guyana Paraguay Costa Rica Honduras Sudan Côte D’Ivoire Isle of Man Swaziland Cyprus Jamaica Tanzania Dominican Republic Latvia Trinidad and Tobago Ecuador Macedonia Uganda El Salvador Malawi Zambia Faroe Islands Malta


Data comparability It is important to be aware that because the data is mapped from a different database, it will not always be the case that full Worldscope adjustment methodology is followed. For example, one common Worldscope adjustment that will not be made is the moving of deferred tax assets to the liabilities side of the balance sheet.

However, it is difficult to generalise about the level of adjustments made, as much depends on the balance of detail reported on the face of the financial statements compared to in the notes.

In order to allow users to identify Reuters Fundamentals-sourced data and certain characteristics of that data, the following new datatypes have been added to Worldscope:

11528 Indicator – Non-Traded Company/Security11563 Indicator – Reuters Data Company 11564 Latest Reuters Data Year11565 Indicator – Period Sourced from Reuters Content 11568 Indicator – Pricing Unavailable

These may be used, for example, as part of data requests on constituent lists or user-created lists to highlight the data which has been sourced from Reuters Fundamentals.

Full information about these new data items may be found in the Worldscope Data Definitions Guide, a link to which is provided above.

We are also planning to add a “fast search” item based on 11563, Indicator – Reuters Data Company, to Equity Screening and information about this will also be added to the Worldscope page of the Datastream Extranet once it is available.


COMPANY ADDITIONS TO WORLDSCOPE

During the October-December period, 2,400 companies were added to the Worldscope database, including 2,174 with data mapped from the Reuters Fundamentals database.

For more information on the Reuters Fundamentals data, please refer to the article entitled Worldscope – Expansion of Coverage Using Data Sourced from Reuters Fundamentals, on page 43. The additions included 581 Vietnamese, 438 Russian, 217 Bulgarian and 122 Romanian companies, as well as companies from Cyprus, Latvia, Malta and Costa Rica for the first time.

Worldscope’s total coverage at 5 January 2011 consisted of 64,141 companies, 39,536 of which were active companies; 12,181 of these companies were limited dataset companies (9,130 active).

COUNTRY TOTAL COMPANIES ACTIVE INACTIVE TOTAL TOTAL ACTIVE FROM ADDED REUTERS FUNDAMENTALS 8 OCT 2010 OCT-DEC 2010 5 JAN 2010 5 JAN 2010 5 JAN 2011 5 JAN 2011

ARGENTINA 122 1 86 37 123 3

AUSTRALIA 2647 13 1871 789 2660 4

AUSTRIA 204 1 92 113 205 1

BAHRAIN 42 0 41 1 42 0

BELGIUM 316 2 153 165 318 3

BERMUDA 94 0 72 22 94 2

BOTSWANA 1 0 1 0 1 0

BRAZIL 634 4 370 268 638 0

BULGARIA 2 217 219 0 219 219

CANADA 2838 39 1504 1373 2877 25

CAYMAN ISLANDS 30 4 22 12 34 4

CHILE 266 0 204 62 266 1

CHINA 2584 103 2593 94 2687 11

COLOMBIA 62 1 38 25 63 3

COSTA RICA 0 2 2 0 2 2

COTE D’IVOIRE 8 0 8 0 8 8

CROATIA 11 45 56 0 56 45

CYPRUS 0 121 121 0 121 116

CZECH REPUBLIC 91 0 19 72 91 0

DENMARK 376 7 196 187 383 41

EGYPT 98 6 92 12 104 1

ESTONIA 11 6 15 2 17 6

FINLAND 241 1 128 114 242 1

FRANCE 1740 5 811 934 1745 7

GERMANY 1611 2 1007 606 1613 14

GREECE 437 0 294 143 437 66

HONG KONG 1239 10 1062 187 1249 0

HUNGARY 63 0 37 26 63 0

ICELAND 20 0 4 16 20 0

INDIA 2462 80 2365 177 2542 0

INDONESIA 468 8 416 60 476 0

IRELAND 163 1 65 99 164 0

ISRAEL 289 14 239 64 303 6

ITALY 552 4 284 272 556 3

JAPAN 4964 6 3720 1250 4970 2

JORDAN 48 2 49 1 50 1

KAZAKHSTAN 2 11 13 0 13 11


KENYA 18 3 21 0 21 0

KOREA (SOUTH) 1472 51 1240 283 1523 45

KUWAIT 185 0 184 1 185 0

LATVIA 0 15 15 0 15 15

LEBANION 6 0 6 0 6 0

LITHUANIA 16 9 24 1 25 9

LUXEMBOURG 79 0 47 32 79 0

MALAYSIA 1261 10 972 299 1271 0

MALTA 0 6 6 0 6 6

MAURITIUS 3 0 3 0 3 0

MEXICO 234 1 128 107 235 0

MOROCCO 41 3 40 4 44 0

NETHERLANDS 421 1 179 243 422 0

NEW ZEALAND 252 1 139 114 253 0

NIGERIA 39 38 77 0 77 39

NORWAY 478 3 213 268 481 0

OMAN 69 49 117 1 118 50

PAKISTAN 185 13 172 26 198 15

PERU 120 2 86 36 122 2

PHILIPPINES 277 1 249 29 278 0

POLAND 428 15 375 68 443 17

PORTUGAL 149 0 58 91 149 0

QATAR 44 0 41 3 44 0

ROMANIA 5 122 127 0 127 126

RUSSIAN FEDERATION 314 438 701 51 752 445

SAUDI ARABIA 124 9 131 2 133 1

SERBIA 2 59 61 0 61 60

SINGAPORE 841 6 643 204 847 0

SLOVAKIA 42 0 20 22 42 0

SLOVENIA 22 9 28 3 31 5

SOUTH AFRICA 882 1 347 536 883 0

SPAIN 331 0 146 185 331 1

SRI LANKA 39 105 142 2 144 129

SWEDEN 774 11 441 344 785 12

SWITZERLAND 470 0 273 197 470 0

TAIWAN 1855 4 1550 309 1859 0

THAILAND 671 1 541 131 672 0

TUNISIA 7 1 8 0 8 0

TURKEY 278 1 237 42 279 0

UKRAINE 4 5 9 0 9 5

UNITED ARAB EMIRATES 84 0 82 2 84 0

UNITED KINGDOM 4839 15 1937 2917 4854 3

UNITED STATES 19530 95 8778 10847 19625 0

VENEZUELA 53 0 38 15 53 0

VIETNAM 10 581 591 0 591 583

VIRGIN ISLANDS (BRITISH 13 0 9 4 13 0

ZIMBABWE 38 0 35 3 38 0

OVERALL TOTALS 61741 2400 39536 24605 64141 2174


PRODUCT MANAGEMENT

PAUL BACON [email protected]+44 (0)20 7542 8254

JULIAN RICKARDS DATASTREAM ADVANCE, DSWINDOWS, [email protected]+44 (0)20 7542 8934

CASEY PEARCE DATASTREAM INTERACTIVE [email protected]+44 (0)20 7542 9825

CONTENT MANAGEMENT

NICOLAS DE LAURENS CASTELET GLOBAL CONTENT [email protected]+44 (0)20 7542 8397

STEPHEN CARTER COMPANY [email protected]+44 (0)29 2063 1943

ANNE SIEBER EQUITIES, EQUITY INDICES, FUNDS & 3RD-PARTY [email protected]+44 (0)20 7324 9741

CONTRIBUTORSJAMES BRIGHT I/B/E/S GLOBAL AGGREGATESESTIMATES [email protected]+44 (0)20 7542 8397

NELSON SALSINHA COMMODITIES, FUTURES, OPTIONS & [email protected]+44 (0)20 7542 6791

MADELEINE DISARIO [email protected]+1 301 545 4255

TONY MCCORMACK FIXED INCOME [email protected]+44 (0)20 7542 1979

PAUL GODDEN FIXED INCOME [email protected]+44 (0)20 7542 1960