Yuanta Funds Licenses New TIP TAIEX+ Customized High Dividend Minimum Variance Index 2017/07/03 00:00
Taiwan – July 3, 2017 – Taiwan Index Plus Corporation (TIP), a wholly owned subsidiary of the Taiwan Stock Exchange (TWSE), announced today that Yuanta Funds, one of the largest passive asset management firms in Taiwan with over USD 7.7 billion in assets under management, has licensed the TIP TAIEX+ Customized High Dividend Minimum Variance Index* for a new ETF to be launched shortly. The official contract signing press conference took place at the Information Exhibition Center on the first floor of TWSE, during which the CEO of TIP, Eric Chen, and the Chairman of Yuanta, Huang Guh-bin, signed the contract in the presence of a witness, President Lee of the TWSE.
During his welcoming speech, President Lee explained that the nation is on course to go from being an “aging society” to an “aged society.”; promoting ETF-related financial products with low volatility and high dividend appreciation will aide in gaining attention of the conservative investors seeking for stable returns for their retirement plan.
Chairman Huang Guh-bin of Yuanta Funds stated that the size of Taiwan’s ETF market has grown significantly in the last two years following the introduction of more diversified products, such as leveraged and inverse ETFs. He further explained the core value of this custom index is not only an asset allocation tool for institutional investors, but it is also to offer investors with a tool for planning their retirement portfolio.
* a custom index calculated by TIP based on the 50 companies with high quality, high dividend, and minimum volatility characteristics listed on the Taiwan Stock exchanges.
About the index:
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Summary of TIP TAIEX+ Customized High Dividend Minimum Variance Index |
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Universe |
Top 250 constituents of TAIEX |
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Weighting method |
Minimum variance weighted |
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Calculation frequency |
Real Time value |
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Launch date |
2017.7.10 |
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Base date |
2017.6.30 |
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Base value |
5,000 |
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Number of Constituents |
50 |
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Periodical review |
The TIP TAIEX+ Customized High Dividend Minimum Variance Index will be reviewed annually |
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Index type |
Smart Beta index |
Performance Comparison Chart:
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TIP TAIEX+ Customized High Dividend Minimum Variance Index |
TAIEX |
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5-Year Total Return |
83.92% |
55.93% |
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Annualized Std. Div. |
11.89% |
13.58% |
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Average Annual Return |
13.17% |
10.01% |
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Beta |
80.28% |
100.00% |
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Sharpe Ratio |
110.75% |
73.72% |
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2016 Dividend Yield |
5.93% |
4.61% |
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5-Year Dividend Yield |
5.84% |
3.86% |
About Taiwan Index Plus Corporation
Established in 2016, TIP is a professional index and information services provider and wholly-owned subsidiary of the TWSE. It is responsible for index development, maintenance, licensing, and marketing in both domestic and foreign markets. It aims to provide investors with high-quality, comprehensive indices and information services, satisfy growing investor appetite for indexing strategies, and create innovative products for Taiwan's capital market. Investors are welcome to visit the Taiwan Index Plus Co. official website for more detailed information at http://www.taiwanindex.com.tw. Live video streaming is available at http://webpro.twse.com.tw/.
For further information, please contact:
Alissa Hsu
Phone:+886-2-8729-9001
Email:[email protected]
Annie Hsia
Phone: +886-2-8729-9002
E-mail: [email protected]