MarketGrader New China ESG Index


Strategy

The MarketGrader New China ESG Index consists of the 100 most fundamentally sound companies with the best growth prospects, based on MarketGrader's ratings, in China's new economy sectors. All its constituents are domiciled in China and traded publicly in the Shanghai Stock Exchange, the Shenzhen Stock Exchange, the Hong Kong Stock Exchange, Nasdaq or the New York Stock Exchange. The index constituents are selected from what MarketGrader considers to be "New China's" sectors, or those that are expected to drive the country's future economic development in the 21st century. These include the consumer discretionary, consumer staples, health care and technology sectors.



Index constituents are selected on the basis of the strength of their fundamentals as measured by the MarketGrader Score (0 to 100), which seeks to identify high quality companies with strong growth prospects without overpaying for their shares. Additionally, MakretGrader has partnered with OWL Analytics, a pioneer in ESG consensus ratings, to ensure the Index selects only the companies with the highest ESG score in their regional category.

Base Date

December 31, 2007

No. of Constituents

100

Minimum Market Cap

USD 500 million

Minimum Liquidity

3-Month Average Daily Trading Volume of USD 2 million

Sector Limit

30% of constituents (30 companies)

Geographic Exposure

Mainland China

Rebalance Frequency

Semi-annually on the third Friday of March and September

Underlying Universe

All public issues from the MarketGrader Research Universe trading on Mainland China, Hong Kong and US Exchanges with the issuing company domiciled in China according to the entity "ISO Country" code. In addition, issues trading on the Mainland China Exchanges have to be a part of the Hong Kong Stock Connect Program.


Since the Index focuses on the growth sectors of the "New China" economy, only companies from the Consumer Discretionary, Consumer Staples, Health Care and Technology sectors, as identified by the MarketGrader Global Classification System, are eligible for the selection universe into the Index.

Ticker Symbols

MGNCUSPR — Price Return (USD)
MGNCUSTR — Total Return (USD)
MGNCUSNR — Net Total Return (USD)

MGNCEUPR — Price Return (EUR)
MGNCEUTR — Total Return (EUR)
MGNCEUNR — Net Total Return (EUR)



Literature

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