S&P Dow Jones Indices (S&P DJI) has launched the S&P Korea Dividend Opportunities Index. As the latest addition to S&P DJI’s expanding South Korea index offering, the Index has been licensed to Hanwha Asset Management for the launch of an index fund.

 

As part of the established S&P International Dividend Opportunities Index family, the S&P Korea Dividend Opportunities Index is designed to measure the performance of high yielding common stocks from the South Korean market, while meeting diversification, stability and liquidity requirements. The Index is comprised of 50 investible stocks from the index universe of the S&P Korea BMI (Broad Market Index). Eligible stocks should offer high dividend yields that meet the Index’s profitability and dividend growth requirements.

 

“After decades of economic development, today’s South Korea boasts an increasingly sophisticated investment community that is keen to incorporate a long-term income strategy in their portfolios,” comments Tianyin Cheng, associate director, strategy indices, at S&P Dow Jones Indices.  “Apart from being a representative measure of market performance, the S&P Korea Dividend Opportunities Index can also serve as the basis upon which passive investment products can be created.”

 

“Passive investment has gained traction in South Korea in recent years and dividends continue to draw significant investor interest,” says Seung-Han Jang, team leader at Hanwha Asset Management. “We are pleased to facilitate access to such market opportunities by leveraging S&P DJI’s proven track record in index development.”