The Taiwan Stock Exchange (TWSE) said that its TWSE RA Taiwan Employment Creation 99 Index beat the weighted index on the main board in terms of total investment returns

January 26, 2014 Leave a comment

TWSE’s employment index beats main board in returns

CNA
January 24, 2014, 12:06 am TWN

TAIPEI — The Taiwan Stock Exchange (TWSE) said Thursday that its TWSE RA Taiwan Employment Creation 99 Index beat the weighted index on the main board in terms of total investment returns last year.

The TWSE said the employment index garnered 22.3 percent in total returns in 2013, compared with 15.1 percent in returns generated by the Taiwan Stock Exchange Capitalization Weighted Stock Index.

According to the TWSE, the employment index in returns closed at 5,670.82 points at the end of 2013, up from 4,637.07 at the end of the previous year.

The exchange said the employment index also beat 11.9 percent in returns posted by the FTSE TWSE Taiwan 50 Index, which is comprised of the top 50 stocks in Taiwan in terms of market capitalization.

The employment index, which was co-compiled by the TWSE and U.S.-based investment management firm Research Affiliates, was launched in December 2010 and includes the top 99 employers in Taiwan as its constituents.

The employment index covers companies in the high-tech sector, the old economy sector and the financial sector. It uses Research Affiliates methodology that determines the constituents and their weightings based on the number of employees, to show how corporations are fulfilling their social responsibilities.

The employment index is also able to reflect how local enterprises are pursuing long term development through their efforts to cultivate talent for future growth, the exchange said.

The TWSE said the Research Affiliate’s innovative methodology is highly regarded in the major equity markets around the world as it can generate satisfactory returns in line with the fundamentals of its constituents.

The exchange said other corporate responsibility-related stock indexes largely focus on issues such as social justice, corporate earnings and environmental protection efforts, which can take too much time to evaluate.

As the assessment process for these indexes can also be expensive, the exchange said, it is not easy for these corporate responsibility-related indexes to generate stable investment returns.

Filed under Macro Trends

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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