The FTSE Global Sustainable Yield Index Series has been designed to measure the performance of an index consisting of securities exhibiting relatively high and sustainable yields.
The indexes were developed to address the inclusion of stocks in some high yield indexes without reference to the likelihood that a dividend will be paid. The FTSE Global Sustainable Yield Index Series excludes extreme yielding stocks. FTSE Russell also examines the financial and operating strength of prospective constituents with specific emphasis on companies with strong balance sheets and the ability to generate cash flow. Other screening criteria include the payout ratio and incidence of historic or forecast dividend cuts as, historically, such stocks are susceptible to falling dividends and consequently yield disappointment.
Net of tax Total Return Indexes are also calculated, and an additional series of capped indexes
Each index comprises up to 150 securities with the highest financial and operational strength scores selected from the relevant regional index. The indexes follow screening criteria applied to the FTSE Global Sustainable Yield Indexes Series. Companies are capped at 10% on a semi-annual basis to avoid over-concentration.
Index rules should be read in conjunction with supportingFTSE Russell noticesThese notices advise of advance changes in index methodology, which may not be reflected in index rules until the change effective date. The notices may also communicate revisions in index treatment in the period up to a rule change.