The fundamental factors used to select index components are being reduced from four to two, namely sales/revenue and net income, which will account for a total of 20% each. The group will no longer consider assets and shareholder equity in the selection process.
In addition, the weight of float-adjusted market capitalization in the component selection process will be increased from 50% to 60%.
The following indexes will be affected by the changes:
- Dow Jones Global Titans 50
- Dow Jones Sector Titans 30
- Dow Jones Asian Titans 50
- Dow Jones Asian Titans 50 (excluding Japan).
The changes will be effective June 24, 2002 with the next annual Titans index review.
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