S-Network International Sector Dividend Dogs Index

Transcription

1 S-Network International Sector Dividend Dogs Index June S-Network Global Indexes, 267 Fifth Avenue, New York, NY

2 Index Rationale Well-Qualified Universe of Index Candidates Captures Stocks Accounting for 70% of Stock Market Capitalization in World Bank High Income Countries Screened for Price Screened for Liquidity Diversified by Sector Five Stocks with Highest Dividend Yields in Each of the Ten GICS Sectors Selected for Inclusion in IDOGX, Assuring Diversification Across All Sectors Pure Yield No Qualitative Screens IDOGX Does Not Include Any Qualitative Screens, such as Dividend Growth, Dividend Consistency or Coverage Ratio Based Entirely on Dividend Yield, Making IDOGX the Only Pure Play Dividend Index Available Entirely Rules-Based Depends on a Clearly Defined Rules-Based Methodology No Discretion is Exercised in Compiling the Index Pre-Defined Screening Protocol Assures a Consistent, Transparent and Arms-Length Compilation Process Equal Weighting Methodology Constituents Equally Weighted as of Record Date The S-Network International Sector Dividend Dogs Index Offers the First Pure Play, Rules-Based High Dividend Index S-Network Global Indexes, 267 Fifth Avenue, New York, NY

3 Index Construction 70-73% of Market Cap in 22 Developed Markets Eliminates Stocks Whose Share Price < $1 Eliminates Stocks Whose ADTV < $10 Million Select 5 Highest Yielding Stocks in Each of 10 GICS Sectors Equally Weighted The S-Network International Sector Dividend Dogs Index Methodology Is Totally Transparent and Includes Screens Designed to Mitigate Risk and Lower Transaction Costs S-Network Global Indexes, 267 Fifth Avenue, New York, NY For Broker Dealer use only

4 Historical Performance 4,000 S-Network International Sector Dividend Dogs Total Return Index vs. MSCI EAFE Total Return Index (12/31/1999-6/30/2015) 3,500 3,000 2,500 2,000 1,500 1, S-Network International Sector Dividend Dogs TR MSCI EAFE TR The S-Network International Sector Dividend Dogs Index Offers Consistent Performance Over Time, Regularly Outperforming the MSCI EAFE S-Network Global Indexes, 267 Fifth Avenue, New York, NY

5 Current Dividend Yield Comparison Index Name Dividend Yield S-Network International Sector Dividend Dogs TR +5.58% MSCI EAFE TR +3.15% The S-Network International Sector Dividend Dogs Index Offers a Higher Dividend Yield than the MSCI EAFE S-Network Global Indexes, 267 Fifth Avenue, New York, NY

6 Dividend Yield 10.00% 9.00% S-Network International Select Dividend Dogs Index Dividend Yield vs. MSCI EAFE Dividend Yield (12/31/1999-6/30/2015) 8.77% 8.00% 7.00% 7.06% 6.80% 6.00% 5.00% 4.43% 4.52% 4.34% 4.69% 4.65% 5.08% 4.98% 6.01% 5.86% 6.04% 6.04% 5.58% 4.00% 3.00% 2.00% 3.76% 3.52% 2.86% 2.25% 1.55% 1.61% 2.60% 2.44% 2.43% 2.38% 2.49% 2.74% 3.20% 3.17% 3.96% 3.16% 3.05% 3.36% 3.15% 1.00% 0.00% Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Jun-15 S-Network International Sector Dividend Dogs MSCI EAFE Over an Extended Time Frame, the S-Network International Sector Dividend Dogs Index Has Consistently Offered Higher Yield Than the MSCI EAFE S-Network Global Indexes, 267 Fifth Avenue, New York, NY

7 Index Constituents Consumer Discretionary Consumer Staples Energy Financials Health Care Pearson Imperial Tobacco Woodside Petroleum Gjensidige Forsikring ASA Eisai Co ProSiebenSat.1 Media Wesfarmers Ltd BP Plc Insurance Australia Group Takeda Pharmaceutical Co Marks & Spencer Group Orkla OMV AG Westpac Banking Corp AstraZeneca Plc SJM Holdings British American Tobacco Eni SpA National Australia Bank Ltd Sanofi-Aventis Li & Fung Ltd Woolworths Ltd Repsol SA Banco Santander GlaxoSmithKline Industrials Information Technology Materials Telecommunication Services Banco Santander SA Utilities BAE Systems Cap Gemini SA Fortescue Metals Group Telstra Corp Ltd Centrica Ferrovial SA Ericsson Rio Tinto Ltd Orange AGL Energy Ltd Atlantia SpA Amadeus IT Holding Antofagasta PLC Proximus National Grid PLC Bouygues SA Ricoh Co BHP Billiton Ltd TeliaSonera AB Scottish & Southern Energy Sandvik AB Canon Inc UPM-Kymmene OYJ Telefonica SA GDF Suez The S-Network International Sector Dividend Dogs Index Offers Diversification by Sector and Company, Avoiding Concentrated Risk S-Network Global Indexes, 267 Fifth Avenue, New York, NY

8 Universe Sector Count Universe Counts Per Sector Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecomm Services Utilities Total * *Qualifying Securities After Application of Various Screens to Original S-Network Developed Markets International Universe Source: S-Network, as of 12/31/2014 The S-Network International Sector Dividend Dogs Universe Currently Includes Nearly 500 International Stocks, with All Sectors Strongly Represented S-Network Global Indexes, 267 Fifth Avenue, New York, NY

9 Dividend Paying Securities in Universe Dividend Paying Securities in Universe Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecomm Services Utilities Total Universe Total * *Qualifying Securities After Application of Various Screens to Original S-Network Developed Markets International Universe Source: S-Network, as of 12/31/ S-Network Global Indexes, 267 Fifth Avenue, New York, NY

10 Sector Distribution S-Network International Sector Dividend Dogs Index: Sector Distribution MSCI EAFE: Sector Distribution* Materials 9.56% Financials 10.38% Health Care 11.26% Materials 7.36% Consumer Discretionary 9.76% Telecomm 10.23% Consumer Staples 10.93% Energy 5.19% Industrials 9.86% Health Care 10.17% Consumer Discretionary 13.20% Information Technology 4.72% Utilities 3.61% Energy 9.86% Information Technology 10.06% Consumer Staples 10.06% Utilities 10.06% Industrials 12.70% Financials 26.17% *Cash in USD includes 0.11% weight S-Network Global Indexes, 267 Fifth Avenue, New York, NY

11 Country Distribution S-Network International Sector Dividend Dogs Index: Country Distribution MSCI EAFE: Country Distribution* United Kingdom 23.92% France 9.50% Germany 8.87% Germany 2.12% Others 6.19% Switzerland 9.77% Australia 7.01% Spain 3.45% Hong Kong 3.67% Italy 4.07% Australia 21.80% United Kingdom 18.24% Netherlands 3.45% Hong Kong 3.22% Norway 4.18% Sweden 2.90% Sweden 5.77% Japan 8.25% Spain 9.94% France 10.09% Japan 22.87% Others 10.71% *Cash in USD includes 0.11% weight S-Network Global Indexes, 267 Fifth Avenue, New York, NY

12 Index Fundamentals Market Capitalization Profile Number of Constituents 50 Total Market Capitalization 1.90 Trillion USD Largest Market Capitalization Billion USD Smallest Market Capitalization 4.58 Billion USD Average Market Capitalization Billion USD Median Market Capitalization Billion USD Solid Fundamentals and a Large Capitalization Bias Help Mitigate Risks in the S-Network International Sector Dividend Dogs Index S-Network Global Indexes, 267 Fifth Avenue, New York, NY

13 Statistical Profile Year-On-Year Price Appreciation S-Net International Sector Div Dogs TR MSCI EAFE TR Out/Underperformance 12/31/ % % 10.11% 12/31/ % % 8.26% 12/31/ % % 5.58% 12/31/ % 39.17% 5.45% 12/31/ % 20.70% 4.25% 12/31/ % 14.02% -3.22% 12/31/ % 26.86% 6.72% 12/31/ % 11.63% 2.04% 12/31/ % % 5.93% 12/31/ % 32.46% 21.63% 12/31/ % 8.21% 3.52% 12/31/ % % 6.57% 12/31/ % 17.90% -2.48% 12/31/ % 23.29% -2.54% 12/31/ % -4.48% -0.29% YTD 6/30/ % 5.88% -4.10% The S-Network International Sector Dividend Dogs Index has Outperformed the MSCI EAFE Index in Eleven of the Last Fifteen Years S-Network Global Indexes, 267 Fifth Avenue, New York, NY

14 Statistical Profile Total Return Appreciation S-Net Intl Sector Div Dogs TR MSCI EAFE TR S&P Intl Div Opps TR** DJ EPAC Sel Div TR Since Inception* % 64.23% 71.36% % 10 Year % 72.45% 75.23% 5 Year 61.68% 61.26% 22.61% 58.21% 3 Year 33.82% 42.20% 12.38% 26.46% 1 Year % -3.82% % % Compound Annual Growth Rate S-Net Intl Sector Div Dogs TR MSCI EAFE TR S&P Intl Div Opps TR** DJ EPAC Sel Div TR Since Inception* 7.73% 3.25% 3.54% 8.62% 10 Year 8.70% 5.60% 5.77% 5 Year 10.09% 10.03% 4.16% 9.61% 3 Year 10.20% 12.45% 3.97% 8.14% 1 Year % -3.82% % % Standard Deviation (Monthly) S-Net Intl Sector Div Dogs TR MSCI EAFE TR S&P Intl Div Opps TR** DJ EPAC Sel Div TR Since Inception* 17.59% 17.27% 22.67% 19.28% 10 Year 19.03% 18.23% 21.32% 5 Year 15.89% 15.71% 18.58% 17.35% 3 Year 11.88% 10.52% 14.05% 13.02% 1 Year 11.19% 10.27% 16.63% 12.06% *From 12/31/1999 **Inception Date 10/08/2008 Calculated Using Net Total Return. All Other Indexes Calculated Using Gross Total Return. IDOGX Net Total Return Calculation Available Upon Request S-Network Global Indexes, 267 Fifth Avenue, New York, NY

15 Statistical Profile Sharpe Ratio (Monthly) S-Net Intl Sector Div Dogs TR MSCI EAFE TR S&P Intl Div Opps TR** DJ EPAC Sel Div TR Since Inception Year Year Year Year Information Ratio (vs MSCI EAFE TR, Monthly) S-Net Intl Sector Div Dogs TR S&P Intl Div Opps TR** DJ EPAC Sel Div TR Since Inception* Year Year Year Year Alpha (vs MSCI EAFE TR, Monthly) S-Net Intl Sector Div Dogs TR S&P Intl Div Opps TR** DJ EPAC Sel Div TR Since Inception* 0.35% 0.49% 0.46% 10 Year 0.25% 0.05% 5 Year 0.02% -0.51% -0.07% 3 Year -0.23% -0.78% -0.46% 1 Year -0.82% -0.81% -0.95% *From 12/31/1999 **Inception Date 10/08/2008 Calculated Using Net Total Return. All Other Indexes Calculated Using Gross Total Return. IDOGX Net Total Return Calculation Available Upon Request S-Network Global Indexes, 267 Fifth Avenue, New York, NY

16 Statistical Profile Correlation S-Net Intl Sector Div Dogs TR MSCI EAFE TR S&P Intl Div Opps TR** DJ EPAC Sel Div TR S-Net Intl Sector Div Dogs TR MSCI EAFE TR S&P Intl Div Opps TR** DJ EPAC Sel Div TR Beta S-Net Intl Sector Div Dogs TR MSCI EAFE TR S&P Intl Div Opps TR** DJ EPAC Sel Div TR S-Net Intl Sector Div Dogs TR MSCI EAFE TR S&P Intl Div Opps TR** DJ EPAC Sel Div TR R-Squared S-Net Intl Sector Div Dogs TR MSCI EAFE TR S&P Intl Div Opps TR** DJ EPAC Sel Div TR S-Net Intl Sector Div Dogs TR MSCI EAFE TR S&P Intl Div Opps TR** DJ EPAC Sel Div TR *From 12/31/1999 **Inception Date 10/08/2008 Calculated Using Net Total Return. All Other Indexes Calculated Using Gross Total Return. IDOGX Net Total Return Calculation Available Upon Request S-Network Global Indexes, 267 Fifth Avenue, New York, NY

17 Index Construction - Methodology Universe Consists of Stocks Representing the Top 70-73% of Market Capitalization in 22 High Income Countries Identified by the World Bank Criteria for Admission to Universe Includes Requirements for Sector Inclusion, Primary Exchange Listing, Minimum Market Capitalization, Minimum Average Daily Trading Volume, Minimum Share Price and Other Factors Individual Securities Included in IDOGX Selected Based on Ranking System Within Each Sector Selects the Five Stocks in Each Sector with Highest Dividend Yield as of Last Trading Day of November Dividend Yield is Computed Based on Regular Cash Dividends Paid by the Company Over Previous Twelve Month Period, Divided by Share Price (Special Dividends Not Included) The S-Network International Sector Dividend Dogs Index Uses A Stable and Transparent Construction Methodology S-Network Global Indexes, 267 Fifth Avenue, New York, NY

18 Index Construction Weighting and Deletions Share Weights Based on Prices as of Close of Trading on Second Friday of Rebalancing Month Index Is Rebalanced Quarterly on the Third Friday of the Last Month of Each Calendar Quarter Index Is Rebalanced Quarterly Back to Equal Weights Stocks Deleted From the Universe Are Deleted from IDOGX Effective Upon Deletion From the Universe Stocks That Have Failed to Pay a Quarterly Dividend Are Deleted from IDOGX as of Next Quarterly Rebalancing If Less Than Five Eligible Securities are Represented in any GICS Sector as of Snapshot Date Only Those Securities Which Qualify are Included A Detailed Methodology and Rules Is Available at S-Network Global Indexes, 267 Fifth Avenue, New York, NY

19 Index Details & Data Distribution Index Values Distributed in Real Time (15 second snapshots) in USD and EUR Total Return Index Calculated Daily in USD and EUR Index Values Distributed via Consolidated Tape Comprehensive Historic Data (including simulated back-tests from 12/31/1999) Daily Prices for Price-Only + TR Indexes in USD + EURO Quarterly Portfolio Snapshots (Historic Constituents and Weights) Extensive Analytic support Quarterly Reports ( Index Insights ) Industry Overviews Extensive Statistical Data Comprehensive website: Broad data distribution via third party vendors S&P/Bloomberg/Yahoo, etc. S-Network contribution page on Bloomberg: SNET S-Network Global Indexes, 267 Fifth Avenue, New York, NY

20 Company History S-Network Global Indexes S-Network Global Indexes, Inc. (SNGI) is a publisher and developer of proprietary and custom indexes. Founded in 2005, SNGI publishes over 200 indexes, which provide the foundations for ETFs and other financial products with approximately $4 billion in assets under management. Key clients in this capacity include some of the world s leading providers of ETFs, UIT, Structured Products and SMAs. SNGI is an industry leader in the development of smart beta indexes, which isolate key investment factors to produce indexes with unique performance characteristics. The firm is also a leader in sustainable and impact investing, its most recent accomplishment being the development and maintenance of the Thomson Reuters Corporate Responsibility Ratings and Indexes, which create new common denominators for environmental, social, and governance benchmarking. SNGI produces several important Impact Indexes, including the S-Network Global Water Indexes and the Ardour Global Alternative Energy Indexes, which have been continuously published longer than any other indexes of their type S-Network Global Indexes, 267 Fifth Avenue, New York, NY