30/03/2007

New Equity Index May Overcome Problems of Capitalization-Weighted Indexing

Financial Research Department  Chief financial engineer Shingo Ide 

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We apply a new indexing method developed in the U.S. to Japanese equities. Backtesting of the new index indicates a significant improvement in risk-return efficiency over the TOPIX index. While TOPIX is now the prevailing benchmark for equity investment, the new method offers an opportunity to consider alternatives.

Financial Research Department    Chief financial engineer

Shingo Ide

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03-3512-1852

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