Dow Jones Asian Titans 50 Index

The Dow Jones Asian Titans 50 Index is an equity index reflecting the pulse of the Asia/Pacific markets. The Dow Jones Asian Titans 50 Index represents 25 companies from Japan and 25 companies from the other Asia/Pacific countries. The Dow Jones Asian Titans 50 Index was introduced in December 2000. The base value of the Dow Jones Asian Titans 50 Index was set at 100 retroactive to a base date of December 31, 1991. The Dow Jones Asian Titans 50 Index is a free-float market capitalization-weighted index. Each Dow Jones Asian Titans 50 Index company’s weight is capped at 10%. The Dow Jones Asian Titans 50 Index weights are reviewed each quarter. Dow Jones Asian Titans 50 Index companies are selected from a pool of 100 Asia/Pacific companies included in the Dow Jones World Index. 50 of those Dow Jones Asian Titans 50 Index eligible companies are listed in Japan.

The Dow Jones Asian Titans 50 Index is reconstituted on an annual basis in June in accordance with a set of transparent criteria. First, two lists of 50 Dow Jones Asian Titans 50 Index eligible companies are compiled. One list is for Dow Jones Asian Titans 50 Index eligible companies from Japan and the other list for Dow Jones Asian Titans 50 Index eligible companies not listed in Japan. The top 50 Japan-listed companies are based on the 25 current Japan-listed Dow Jones Asian Titans 50 Index companies and the top 25 Dow Jones World Index Japan-listed companies, based on float-adjusted market capitalization, not already included in the Dow Jones Asian Titans 50 Index being reconstituted.

This list of 50 Japan-listed Dow Jones Asian Titans 50 Index eligible companies is then ranked three different ways. The first ranking of the Japan-listed Dow Jones Asian Titans 50 Index eligible companies is based on float-adjusted market capitalization. The second-ranking of the Japan-listed Dow Jones Asian Titans 50 Index eligible companies is based on sales & revenue. The third-ranking of the Japan-listed Dow Jones Asian Titans 50 Index eligible companies is based on net profit. Finally, each Japan-listed Dow Jones Asian Titans 50 Index eligible companies ranking is assigned the following weight to determine the final ranking. The float-adjusted market capitalization rank is weighted at 60%. The sales & revenue rank and the net profit rank are each weighted at 20%.

Once the final ranking of the Japan-listed Dow Jones Asian Titans 50 Index eligible companies is complete, buffer rules are applied prior to selecting the new 25 Japan-listed Dow Jones Asian Titans 50 Index companies. Buffer rule #1: if a company is not already included in the Dow Jones Asian Titans 50 Index it is ranked within the top 15 of the final ranking of Japan-listed Dow Jones Asian Titans 50 Index eligible companies, then such company will replace the current Japan-listed Dow Jones Asian Titans 50 Index company with the lowest ranking. Buffer rule #2: if a current Japan-listed Dow Jones Asian Titans 50 Index company is ranked 36 or lower then such company will be replaced with the highest-ranked company not already included in the Japan-listed Dow Jones Asian Titans 50 Index. The same process is followed for non-Japan listed companies to select the 25 non-Japan listed companies to be included in the Dow Jones Asian Titans 50 Index. The Dow Jones Asian Titans 50 Index is computed using the Laspeyres’ formula and is published in real-time in both euros and US dollars.

The Dow Jones Asian Titans 50 Index is only one of many that are part of the Dow Jones Titans Index family.

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