Dow Jones Indexes and Brookfield Asset Management Inc. (NYSE: BAM, TSX: BAM.A, Euronext: BAMA), a global asset management company focused on property, power and infrastructure assets, announced the launch of an…...
index that measures the highest-yielding stocks in the Dow Jones Brookfield Global Infrastructure Composite Index.
“We’ve seen continued interest in infrastructure assets as a growing investment niche, along with the need for accurate measurement tools. The new Dow Jones Brookfield Global Infrastructure Composite Yield Index takes a yield-oriented approach to measuring the performance of infrastructure companies. This focus makes the index a suitable benchmark for clients and market participants seeking the extra benefit of strong dividends in their infrastructure portfolios,” said Michael A. Petronella, president, Dow Jones Indexes.
“The appeal of global infrastructure securities lies in predictable and growing cash flows. The strength of these cash flows results in strong dividend components, which are particularly attractive to investors given the recent volatility in broader equity markets,” said Craig Noble, managing director of Brookfield’s global infrastructure securities platform.
The index universe is defined as all stocks in the Dow Jones Brookfield Global Infrastructure Composite Index. Companies are ranked in descending order by indicated annual yield, and the top 70% of the stocks are selected as index components. The index is weighted by float-adjusted market capitalization. The weight of individual components is capped at 10% on a quarterly basis.
The Dow Jones Brookfield Global Infrastructure Indexes measure the performance of companies that exhibit strong infrastructure characteristics. The index family includes a composite index, regional indexes for the Americas, Europe, the Asia-Pacific and Global ex-U.S., and eight sector indexes for airports, communications, diversified, oil and gas storage and transportation, ports, toll roads, electricity transmission and distribution and water. Also included is the Dow Jones Brookfield Infrastructure MLP Index, which tracks master limited partnerships.
The Dow Jones Brookfield Global Infrastructure Composite Yield Index is reviewed semi-annually in March and September. Index composition and weighting adjustments are also made on an as-needed basis to account for corporate actions such as delistings, bankruptcies, mergers or takeovers. Daily historical data for the Dow Jones Brookfield Global Infrastructure Composite Yield Index is available back to December 31, 20021.
1The Dow Jones Brookfield Global Infrastructure Composite Yield Index was first published on October 13, 2009. All estimated daily historical closing prices prior to that date are based on back-testing (i.e., calculations of how the index might have performed in the past if it had existed). Backtested performance information is purely hypothetical and is solely for informational purposes. Backtested performance does not represent actual performance, and past performance is not indicative of future results.
Source: ETFWorld – Dow Jones Indexes