Top Salary 100 Index sees red on TWSE debut
By Kathryn Chiu, The China Post
August 26, 2014, 12:05 am TWN
TAIPEI, Taiwan -- The Taiwan Top Salary 100 Index (台灣高薪100指數) on Monday slid 5.97 points to 5,159.55 on the back of its arrival on the Taiwan Stock Exchange (TWSE).
The Taiwan Top Salary 100 Index, TWSE's (台灣證券交易所) Corporate Social Responsibility (CSR) index prepared in collaboration with Research Affiliates, LLC (RA) hopes to implicitly guide capital to invest in listed companies offering higher salaries and to encourage companies to increase wages, United Evening News of Taiwan reported yesterday.
TWSE yesterday announced that the top ten constituent stocks of the Index — the world's first index of its kind — are Taiwan Semiconductor Manufacturing Co. (台灣積體電路), Hon Hai Precision Industry (鴻海精密), Chunghwa Telecom (中華電信), Fubon Financial Holding Co. (富邦金控), CTBC Financial Holding Co. (中信金控), Taishin Financial Holding (台新金控), Mega Financial Holding Co. (兆豐金控), Nan Ya Plastics (南亞塑膠), China Steel Corp. (中國鋼鐵) and Quanta Computer (廣達電腦).
According to TWSE backtesting performance, from June 2009 to May of this year, the annualized rate of return on the Taiwan Top Salary 100 Index was 10.56 percent, surpassing the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX,台灣證券交易所發行量加權股價指數) average of 9.3 percent in the same period.
The TWSE pointed out at the beginning of the year that the Financial Supervisory Commission (FSC,金融監督管理委員會) actively called on companies to increase wages, and they developed policies to encourage companies to do so. In response to and in support of the FSC, the TWSE prepared the Taiwan Top Salary 100 Index.
The TWSE indicated that the weighted calculation factors of the Taiwan Top Salary 100 Index are based on total remuneration, the magnitude of salary increases and the net income of constituent stocks. RA's fundamental index approach is utilized to enhance index performance.
Attempt to Attract UK Funds
In an official statement released yesterday, TWSE said it would send a delegation to London early September as part of TWSE investors' outreach program to advocate the development of Taiwan's capital market and investment opportunities in Taiwan. The delegation also aims to attract more international capital to the Taiwan market in order to strengthen its global competitiveness.
During the visit, the TWSE delegation will meet with the London Stock Exchange's (LSE) top management to discuss areas of potential cooperation.
TWSE will also host a seminar with global institutional investors to highlight reforms recently introduced in the Taiwan market and to discuss a roadmap for the rollout o f new financial products. These measures aim to attract more capital inflows to the Taiwan market.