OREANDA-NEWS. October 08, 2015. The MSCI AC Asia ex Japan Growth Index captures large and mid-cap securities exhibiting overall growth style characteristics across the region. The MSCI AC Asia ex Japan Growth Index is free float weighted and made up of more than 300 constituents. With dividends, and in US Dollar terms, the Index has declined 9.7% in the year thus far, similar to the broader MSCI AC Asia ex Japan Index which has declined 9.6%.

The growth investment style characteristics used to construct the MSCI AC Asia ex Japan Growth Index include five variables: long-term forward Earnings Per Share (EPS) growth rate, short-term forward EPS growth rate, current internal growth rate and long-term historical EPS growth trend and long-term historical sales per share growth trend.

According to MSCI, of the variables, long-term forward EPS growth rate is the most systematically associated with the concept of growth and it captures growth style attributes relatively more effectively than other variables. All forward variables are based on consensus analysts’ estimates are provided by specialized data vendors. Currently, the primary vendor for forward variables is Thomson Institutional Brokers' Estimate System (I/B/E/S). For all other fundamental data, MSCI data are used. Methodology applied to the MSCI Growth Indices can be found here.

Within the Index, there is country representation by Singapore, China, Hong Kong, India, Indonesia, Korea, Malaysia, the Philippines, Taiwan and Thailand.  SGX lists fifteen primary listings and one secondary listing that are included in the index. These stocks represent five sectors. Stocks with the largest free float among the five sectors are Genting Singapore PLC (Consumer Discretionary), DBS Group Holdings (Financials), IHH Healthcare Berhad (Healthcare), ComfortDelGro (Industrials) and Singapore Telecommunications (Telecommunications).

Together these five stocks have averaged a 5.6% decline in total return in the year thus far, taking their average three-year total return to 31.3%. The average dividend yield of the five stocks is 2.6% while the average Price-to-Earnings (P/E) ratio is 28.4. As noted in the most recent SGX My Gateway report (click here), IHH Healthcare Berhad maintains the highest Price-to-Earnings ratio of the 29 stocks that make up the SGX Indicative Healthcare Index.