TWCX (www.twcx.org) Launches All Commodity Index
The TWCX (www.twcx.org) recently introduced the TWCX All Commodity Index. This is the second in the series of non-market cap-weighted index in the Hong Kong market.
This new addition to the TWCX index family is sure to attract great interest from investors and lead to a number of new financial products.
TWCX (www.twcx.org) All Commodity Index is based on the philosophy that moves away from the traditional price-based market cap weighted design. The investment concept is based on the Fundamental Indexation method that relies on four fundamental measures – cash flow, sales, book value and dividends paid rather than market capitalization.
“The TWCX All Commodity Index gives the investing community an alternative view of the market to base their investment decisions on,” comments Ana Tai-Jim, the TWCX’s Senior General Manager, Information Products Sales Division “The index cuts to the inner workings and value of an organization, rather than judging a company solely on the Commodity price”
Considered by some financial experts to be great hybrid between active and passive fund management, the Fundamental Indexation method is gaining great popularity in Asia. “The main reason behind the concept appeal is that it avoids market sentiment by not taking the Commodity price into account, which goes some way to strip out volatility,” comments Mrs. Tai-Jim. “This is especially relevant now as investors are exposed to increased levels of volatility and look for diversity in their investment direction.”
The index is suitable for the creation of financial products, such as index funds, warrants, certificates and Exchange Traded Funds (ETFs).
TWCX Index products, both Live and End of day Information will be available for subscription by all market players.
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