FTSE Group (“FTSE”), the leading global index provider, and Value Partners Index Services Limited (“Value Partners”), a wholly-owned subsidiary of Value Partners Group, today launched two custom indices that will offer new unique investment opportunities for the Taiwanese and Korean markets - the FTSE Value-Stocks Taiwan Index and FTSE Value-Stocks Korea Index.
The new indices are based on Value Partners’ unique value methodology and calculated and maintained using FTSE expert custom index solutions. They capture the performance of quality, liquid value stocks selected from the investable universe of companies listed on the Taiwan and Korea’s exchanges. The FTSE Value-Stocks Taiwan Index and FTSE Value-Stocks Korea Index will be calculated alongside the FTSE Value-Stocks China Index which was launched in July 2009. The FTSE Value-Stocks China Index is the basis of the Value China ETF which listed in December 2009. The year-to-date performance of the FTSE Value-Stocks China Index is 18.48% which outperforms the FTSE China 25 Index by 7.51%. The key characteristics of the indices are listed in Table 1 in appendix.
Mr. William Chow, Value Partners’ Managing Director of the Value Partners’ ETF business, said, “As pioneering value investors in the Asia-Pacific region, we’ve created the Value Index family of products for investors seeking a basket of value stocks that have been identified using our unique methodology.”
Referring to the latest performance data that showed the FTSE Value-Stocks China Index’s track record, Mr. Chow elaborated by saying that, “The constituents in our new Indices have been chosen using the same methodology we use for the FTSE Value-Stocks China Index, one that uses a unique value screening process that incorporates valuation, quality, and contrarian criteria.”
Jessie Pak, Director, Asia of FTSE Group, said “We are delighted to extend our cooperation with Value Partners to develop an expanded range of indices. These indices combine FTSE’s custom expertise with the investment knowledge of Value Partners to provide investors with a unique way of accessing opportunities in Taiwan and South Korea.”
Mr. Chow also said that, “the constituent stocks in our Taiwan and Korea Value Indices go through a rigorous screening process, so that we can avoid value traps and concentrate on quality stocks. Moreover, as part of our contrarian approach, we make it a point to exclude stocks that most analysts favor with buy calls. Our unique methodology is the engine behind our ongoing commitment to offer investors innovative products.”
Mr. Chow concluded by saying that he would anticipate broader appreciation by the investment community of the Value Index products, and expects the release of similar indices in the future.
For more information on the FTSE Value-Stocks Index Series including the ground rules please visit www.ftse.com/valuestocks.