LONDON--(BUSINESS WIRE)--IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions, today announced the launch of two new stock indices – KRX-IHS Markit KOSPI 200 Dividend Forecast Yield Top 30 and KRX-IHS Markit KOSPI 200 Dividend Forecast Growth Top 30 – in alliance with Korea Exchange (KRX), a leading cash and derivatives exchange based in Seoul, South Korea.
The KRX-IHS Markit indices enable exchange-traded funds (ETFs) and other market participants to track publicly traded Korean companies with the strongest dividend prospects based on IHS Markit research. Both indices are derived from the KOSPI 200, the flagship KRX index, using the forward-looking figures of Top 30 dividend performers.
“Integrating IHS Markit dividend forecasting into the stock selection process is a natural progression for smart beta indices,” said Sang Hwan An, president and CEO of the Management Strategy Division at KRX. “By measuring the potential for future performance, these new indices provide investors with an opportunity to upsize dividends.”
In 2014, the Korean government introduced a profits tax to promote more progressive dividend polices and transparency in cooperate governance. Since then, nearly half of all blue-chip KOSPI 200 firms increased dividends by more than 10 percent. For 2017, the IHS Markit Dividend Forecasting team is projecting an estimated collective 16 percent dividend increase from KOPSI 200 firms.
“The recent growth in Korean dividends inspired us to collaborate with KRX on an innovative approach for index-based investing that can offer a strong value for ETFs with Korean exposure,” said Pierre Khemdoudi, managing director of securities finance at IHS Markit. “As the IHS Markit dividend forecasting team continues to measure dividend growth trends in other global markets, we plan to launch additional indices based on forward-looking data.”
About IHS Markit (www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
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About Korea Exchange (KRX) (http://global.krx.co.kr)
Korea Exchange Inc. (KRX), a leading cash and derivatives exchange, is the sole venue of the cash and derivatives market in Korea. KRX is also responsible for clearing and settlement facilities in those respective markets. KRX clears and settles all transactions on its markets as a one-stop service. As a leading derivatives exchange, KRX offers diverse product groups including individual equities, stock index, bonds/interest rate, foreign currencies and commodities.