Indices rejig to provide exposure to yield and China
MSCI will added China A-shares into its global benchmark indices but has not indicated when it would do so stating it still needed to resolves issues relating to market accessibility with the China Securities Regulatory Commission (CSRC).
MSCI said it had formed a working group with the CSRC and would include China A-shares in the MSCI Emerging Markets Index as soon as the issues outlined by the CSRC were resolved.
These issues relate to the quota allocation process, capital mobility restrictions and beneficial ownership of investments with MSCI stating it would partially include China A-shares in the pro forma MSCI China Index and its corresponding composite indexes, including the MSCI Emerging Markets Index, most likely in 2016.
S&P Dow Jones Indices has also launched the S&P/ASX 300 Shareholder Yield Index aimed at representing listed companies with the highest shareholder yields and has licensed the index for use by ANZ ETFS Management.
ANZ ETFS Management is a joint venture between the Australia and New Zealand Banking Group Limited and ETF Securities Group and has released six new exchange traded funds, with the joint venture also licensing two other established market benchmarks for the US and Australian markets.
S&P said the index was based on the universe of S&P/ASX 300 Index and measures the performance of the top 40 stocks with the highest shareholder yields in the past year, within set liquidity and quality criteria.
AUTHOR
Jason Spits
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