Investable and benchmark indices provider S&P Dow Jones Indices (SPDJI) has launched six new indices to meet the demand of South African investors for index-based investment strategies and benchmarks.

The new indices formed part of SPDJI’s continuous expansion of its South African indices and followed the launch of nine new South African indices in February.

“SPDJI is aggressively expanding its index offerings in South Africa to meet the growing needs of investors [in the country] for innovative, transparent and representative financial market indices,” SPDJI global equity indices director Michael Orzano said.

The six newly launched indices included S&P South Africa Composite Property, a market capitalisation-weighted index – which included all companies in the S&P South Africa composite that were classified as property companies – the S&P South Africa Composite Property Capped, a modified market capitalisation-weighted index where no single stock weighed more than 10% of the index at each rebalancing, and the S&P global intrinsic value index South Africa Composite – an index designed to track large-, mid- and small-cap companies listed on the JSE while delivering lower volatility and performance weighted by intrinsic stock value, rather than by traditional market capitalisation.

Further, SPDJI launched the S&P South Africa Domestic Shareholder Weighted (DSW) index, a variation of the S&P South Africa Composite, in which the float-adjusted market values of companies were modified to reflect the level of ownership by South African investors.

SPJDI pointed out that ten Global Industry Classification Standard sector indices based on the S&P South Africa DSW index were also being launched.

Meanwhile, the S&P South Africa DSW Capped index – a modified market capitalisation variation of the S&P South Africa DSW index, where no single stock weighed more than 10% of the index at each rebalancing – and the S&P South Africa DSW 50, which was a variation of the S&P South Africa 50, was also launched this week.

The S&P South Africa DSW sector indices would, for first time, allow South African investors to measure sector performance based on the DSW index methodology, SPDJI explained.

“We now offer an extensive set of broad market, tradable, thematic and alternatively weighted indices designed to measure different exposures to South African equities,” Orzano stated.