Asia Index joint venture launches four S&P BSE Factor indexes

By Tanya Meyer

Chicago, Dec. 14 – Asia Index Private Ltd., a joint-venture between S&P Dow Jones Indices and the Bombay Stock Exchange, has launched four new indexes under the S&P BSE Factor Indices suite.

The S&P BSE Factor Indices offer access to non-market factors, such as value, momentum, quality and low volatility while ensuring reasonable liquidity. Each index includes 30 companies based on their respective factor scores calculated by the index methodology.

• The S&P BSE Enhanced Value Index measures company performance with valuations based on ratios, specifically book value to price, earnings to price, and sales to price.

• The S&P BSE Low Volatility Index comprises companies with the least amount of volatility.

• The S&P BSE Momentum Index measures companies that show persistent relative performance.

• The S&P BSE Quality Index tracks high quality stocks based on return on equity, accruals ratio and financial leverage ratio.

The weight of a stock in each index is capped at 5%, while each BSE sector in the S&P BSE Enhanced Value Index and the S&P BSE Quality Index is capped at 30%.

Index composition is reviewed semi-annually in March and September, and valued in dollars and rupees. The first value of the indexes is Sept. 16, 2005.

All four indexes are drawn from the S&P BSE LargeMidCap Index, a sub-index of the S&P BSE AllCap.

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