OREANDA-NEWS. May 18, 2015. The FTSE Value-Stocks ASEAN Index is a value-based index designed by Value Partners Index Services and created, calculated and maintained by FTSE International.  

The FTSE Value-Stocks ASEAN Index consists of 50 stocks amongst liquid and tradable ASEAN companies listed on the Indonesia Stock Exchange, Bursa Malaysia, the Philippine Stock Exchange, Singapore Exchange (SGX) and the Stock Exchange of Thailand. The ground rules for the index can be obtained here.

The Index is free float weighted and constituent stocks are capped at 5% weightings to avoid over-concentration in any one stock. More than half the index weighting is represented by the Financials Sector through banks and real estate. There are a total of 10 stocks listed on SGX that are currently included in the FTSE Value-Stocks ASEAN Index.

These 10 stocks are detailed in the table below. Together the 10 Singapore constituent stocks have averaged an 2.4% total return in the 2015 year thus far, taking their average three year total return to 25.9%. Based on StockFacts data, which can be accessed by clicking on the constituent name in the table, the average price-to-earning (P/E) ratio of the stocks is 10.7, average Return on Equity (ROE) is 13.5 and average dividend yield is 4.1%.

Company Name SGX Code Mkt Cap S\\$M % Price Change YTD % Change - Dividend Adj.
YTD		 % Change  Div Adj. 
[1 Year]		 % Change Div Adj.      [3 Years] P/E Ratio ROE % Div Yld
Oversea-Chinese Banking Corporation Limited O39 41,452 0.0 1.7 14.4 34.0 10.3 13.0 3.4
United Overseas Bank Limited U11 38,534 -1.4 0.8 11.3 46.7 12.3 11.2 2.9
Keppel Corporation Limited BN4 16,015 -0.3 3.7 -13.4 2.9 8.5 18.3 5.4
Jardine Cycle & Carriage Limited C07 14,520 -3.6 -1.4 -5.9 -1.9 13.7 16.0 2.8
Sembcorp Industries Ltd U96 7,468 -5.4 -3.1 -20.9 -3.6 10.1 14.2 3.8
Sembcorp Marine Ltd S51 6,308 -7.4 -4.9 -21.3 -26.6 11.6 18.7 4.3
UOL Group Limited U14 5,874 7.9 9.9 12.9 84.5 9.2 9.9 2.0
Yangzijiang Shipbuilding (Holdings) Ltd. BS6 5,709 24.1 24.1 33.0 63.0 7.6 16.7 3.8
Mapletree Logistics Trust M44U 2,957 1.3 4.3 10.0 50.1 10.2 9.3 6.3
CDL Hospitality Trusts J85 1,672 -2.3 0.9 4.3 9.7 13.9 7.5 6.5

Source: FTSE Group, SGX StockFacts

For a full list of the constituents of the FTSE Value-Stocks ASEAN Index, please click here.

Value-Stock Criteria

As maintained by the Index Rules, each security must be a current constituent of the FTSE Global All Cap Index and the securities from an ASEAN Country will be eligible for Index inclusion on the size, liquidity and free float investability screens.

Constituents of the FTSE Value-Stocks Indices must also pass a proprietary value screening process which includes valuation, quality, and contrarian factors:

  • Contrarian Factors – in avoiding ‘going with the herd’ the screen excludes stocks with consensus analyst “buy” calls. More specific information can be found in Section 5.1 in the Index ground rules here.
  • Quality Factors - screening is designed to reduce value traps and focuses on ‘quality’ so that highly leveraged and thin profit companies are avoided. Screens are based on three year average ROE, operating profit margin and net gearing. More specific information can be found in Section 5.2 in the Index ground rules here.
  • Valuation Factors – screening is designed to help select relatively undervalued constituents. Both dividend yield and forecast P/E is taken into account. More specific information can be found in Section 5.3 in the Index ground rules here.

As stated in the Index Rules, from the ASEAN Investable Universe, the companies passing through all the screenings above are ranked by PE ratio and the 50 companies with the lowest P/E ratio are selected to be the constituents of the Index. Value Partners is responsible for undertaking the Index screening review of the Index.

Recent Performance

The FTSE Value-Stocks ASEAN Index has generated 0.6% total return in the year thus far, with longer term three year total return at 12.4%.

Source: FTSE Group (Data as of 14 May 2015)

The FTSE Value-Stocks ASEAN Index has a base value of 1000 and base date of 17 October 2003.

Index Reviews

Effective today Mapletree Logistics Trust has been added to the FTSE Value-Stocks ASEAN Index replacing Mapletree Industrial Trust.  There were a total of 12 inclusions and 11 exclusions in the semi-annual Index review which became effective with the open today.

Index reviews are conducted on a semi-annual basis in May and October using data as at the last working day in April and September, respectively. To keep abreast of reviews and change please click here. The FTSE Value-Stock indices are designed for the basis of ETFs and other derivatives.