Portfolio managers can benchmark their portfolio performance against indexes to see how well they have excelled in making return.
Diversification is good in minimize the
unsystematic risk, especially in those markets with less correlation. For those who are investing in international stock market, here are some indexes you can look into:
- Asean - FTSE/ASEAN 40 Index
- Asia Pacific - MSCI AC (All Country) Asia ex Japan Index
- Euro - FTSEurofirst Index Series
- US - S&P500, Dow Jones Industrial Average (DJIA), NASDAQ-100
According to
SGX doc, FTSE/ASEAN 40 Index consists of the largest 40 companies by full market value from the eligible markets that qualify as eligible for inclusion in the FTSE/ASEAN Index.
Securities that are members of the FTSE All-World Index for Indonesia, Malaysia, Philippines, Singapore and Thailand are potentially eligible for the Index. If, at the time of the Index review, a review of the FTSE All-World Index has been carried out but not implemented, the new FTSE All-World Index constituent list will be used.
Securities are subject to a liquidity screen. Each security must turn over at least 20% of its shares in issue, after adjusting for free float, in the twelve months prior to the review.
