OREANDA-NEWS. Nomura Securities Co., Ltd., a wholly owned subsidiary of Nomura Holdings, Inc., today announced that it will publish a new index named the Nomura Enterprise Value Allocation Index. The index is a market cap-weighted Japanese equity index (with weightings capped at 3%) comprising stocks in highly profitable companies that have taken proactive steps to improve shareholder returns, for example by making appropriate investments in physical and human capital.

The composing companies are expected to sustain growth through appropriately distributing their enterprise value, which is created by proactive investment to shareholders and employees. The index aims to track the performance of such companies’ stocks by passive investment.

The index consists of the top stocks (capped at 300 stocks) which are selected from a universe of all common stocks listed on Japanese stock exchanges by using quantitative indicators based on factors such as profits, dividends, personnel expenses, capex, and R&D expenditure.

To ensure objectivity and accuracy, only commonly available actual financial data is used to select the stocks. In order to accommodate operating businesses of the index-related products, the index is designed to consider the tradability of constituents in terms of market capitalization and liquidity. Additionally, individual stock weights are capped to prevent excessively investing in specific stocks.

The index is released by Nomura, where the Quantitative Research Dept. is in charge of the development and the Index Operating Dept. is in charge of the calculation.

Nomura will continue to provide services that meet investors’ needs through developing financial products linked with the index.

Nomura

Nomura is an Asia-headquartered financial services group with an integrated global network spanning over 30 countries. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its three business divisions: Retail, Asset Management, and Wholesale (Global Markets and Investment Banking). Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership.