S&P launches BRIC High Yield index, risk control versions of the index

By Tali David

Minneapolis, May 21 - S&P Indices has launched the S&P BRIC High Yield index and risk control versions of the index, according to a press release.

The index is part of the BRIC 40 index family, the emerging market index that measures the performance of 40 leading companies in Brazil, Russia, India and China, together known as the BRIC countries.

The S&P BRIC High Yield index provides exposure to 40 high-dividend-yielding companies in the BRIC countries, while meeting stability, tradability and diversification requirements, the release said.

Among other criteria, a company must have positive earnings per share before extraordinary items over the past 12 months preceding the rebalancing reference date to qualify for inclusion in the index.

The S&P BRIC High Yield Risk Control indexes, meanwhile, provide access to 40 high-dividend-yielding companies in the BRIC countries along with a targeted, specific level of volatility of either 5%, 10%, 15% or 18%. Each index seeks to manage the risk relative to the target, so that if the risk level is too high, the cash level is increased to maintain the target volatility, and if the risk level is too low, the index will employ leverage to maintain the target volatility.

S&P Indices is part of New York-based McGraw-Hill Cos.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.