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Need of the Atherstone BRIC Index |
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High Growth rates |
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Increased Foreign Direct Investments |
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High Currency Appreciation expected |
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40% of the world population |
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Abundant agri/mineral resources |
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Huge investments in infrastructure |
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Huge middle class boosting demand |
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Abundant supply of skilled workforce |
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High potential for outsource work |
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Domestic Mergers & Acquisitions |
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Regulatory compliance becoming more transparent and vigorous |
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| GUIDELINES FOR ATHERSTONE BRIC INDEX: |
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Index Universe
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| For Atherstone BRIC Index four countries blue chip index are taken as the basis for selecting the constituents of the Atherstone BRIC Index. The indices for these four countries are Brasil: IBrX 100, Russia: RTS 50, India: Nifty, China: SSE 50. |
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Inclusion: |
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| Since all the constituents of the above blue chip indices are selected on the basis of market capitalization and turnover, we need not filter it again on the basis of turnover. The top 15 companies on the basis of market capitalization of each country (four indices as stated above) would form part of the Atherstone BRIC 60 Index. |
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Specifics |
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| The index is calculated on full market capitalization methodology in USD terms. The index will comprise of 60 companies. The index has been calculated from 01-07-2004. The daily historical indices value is calculated from 01-07-2004. The base composition of the index is selected by taking average market capitalization of the companies between 1st April, 2004 to 30th June, 2004. Before the selection of composition of index all the local currency market cap of the 4 countries have been converted into USD Market Cap by taking USD to local currency rate from Reuters. The market capitalization used in Index calculation is calculated in USD Currency. The index number is set as 1000. |
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Review Frequency |
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| The index is reviewed on a yearly basis. The initial composition of the index is selected from average market capitalization for the quarter ending 30-06-2004. Subsequently, the indices are reviewed by taking into account preceding three months average market capitalization. |
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About Atherstone BRIC Sectoral Indices: |
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| Looking at the need for BRIC Indices, it was felt that Atherstone should simultaneously construct Sectoral Indices for BRIC Economies. As of now, Atherstone has constructed indices on Three (3) major and important sectors of these economies viz, |
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Atherstone Oil & Gas, |
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Atherstone Power and |
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Atherstone Bankex |
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| In the near term we intend to launch many more sectoral indices on BRIC Economies.
These indices are constructed on the following guidelines. |
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Index Universe |
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| The universe of these sectors is companies forming part of these sectors as already classified by Reuters. |
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Inclusion |
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| The constituents of the index are selected on the basis of market capitalization. Top Twenty (20) companies in terms of market capitaliastion will form part of the index. |
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Specifics |
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| The index is calculated on full market capitalization methodology in USD terms. Each BRIC Sector index will comprise of 20 companies. The index has been calculated from 01-04-2006. The daily historical indices value is calculated from 01-04-2006. The base composition of the index is selected by taking average market capitalization of the companies between 1st Jan, 2006 to 31st March, 2006. Before the selection of composition of index all the local currency market cap of the 4 countries have been converted into USD Market Cap by taking USD to local currency rate from Reuters. The market capitalization used in Index calculation is calculated in USD Currency. The index number is set as 1000. |
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Review Frequency: |
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| The Constituents of the index are reviewed on a half-yearly basis. The initial composition of the index is selected from average market capitalization for the quarter ending 31-03-2006. Subsequently, the indices are reviewed by taking into account preceding three months average market capitalization. |
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