The Singapore Exchange (SGX) has announced the launch of SGX Thematic Indices, a suite of equity indices under its index business, SGX Index Edge.
Launched in October 2015, SGX Index Edge offers comprehensive index services for issuers, asset managers and investors in Asia. SGX Index Edge gives SGX an unprecedented capability to better profile key segments of its securities market and deliver bespoke calculation capabilities that will enable clients to build tailored indices. As part of this, SGX Thematic Indices will now offer a suite of equity indices based on the Real Estate, Healthcare, Minerals, Oil & Gas and Maritime & Offshore sectors. These are sectors that have traditionally featured prominently across the SGX securities market and contribute significantly to the Singapore economy.
The 11 new indices will help to profile the underlying securities and offer insights into both risk and performance associated with the sectors. They will further enhance the understanding of investment opportunities and what drives returns in these markets.
Targeting the growing ETF market in Asia, the indices will also provide benchmarks linked to key themes in Singapore and encourage the creation of ETF products that are invested in Singapore stocks.
Loh Boon Chye, Chief Executive Officer of SGX, said, “These indices enhance SGX’s existing sector strengths and provide valuable profiling of some of the most vibrant areas in our securities market, where we see an opportunity to enhance liquidity. The themes covered by these indices complement SGX’s educational initiatives as well as listings and securities strategy. This launch is an important step that supports our priority of strengthening our business and we continue to explore new ways of enhancing access to, and understanding of, our markets.”
