New Index to Capture Dividend Returns of STI Constituents
Singapore Press Holdings (SPH), SingaporeExchange (SGX) and FTSE Group (FTSE) jointly announce the launch of the Straits Times Index (STI) Dividend Index today.
The new STI Dividend Index represents the cumulative value of ordinary dividends paid by
stock components of the underlying STI Index. Capturing returns in this way makes the
index ideal for creating products like derivatives, tracker funds, Exchange Traded Funds and
other structured products. This allows investors to take a view on the expected dividends of
its constituents and to create new investment opportunities.
The index runs for a one-year period and is calculated from the first trading day of the calendar year and is reset after the last trading day of the calendar year. However, the underlying constituents will be reviewed in line with the STI and FTSE ST Index Series in March and September. The index value will be expressed in terms of index points using end of day pricing. The new STI Dividend index is launched with a value that is based on January 2010 data.
For more information about the STI and FTSE ST Index Series including index ground rules,
please visit www.ftse.com/st