MarketGrader Emerging Markets 300 Index


Base Date:

December 31, 2007

No. of Components:

300

Minimum Market Cap:

USD $200 million

Minimum Daily Avg. Liquidity:

USD $2 million

Sector Limit:

20% (60 companies)

Geographic Exposure:

Emerging Market Economies as classified by the International Monetary Fund (IMF, World Economic Outlook Database)

Rebalance Frequency:

Semi-annual

Underlying Universe:

Companies domiciled in emerging market economies, whose countries meet MarketGrader’s eligibility criteria.


Methodology


Selection
All index components are selected based on their overall MarketGrader Grade. Built on a scale between 0 and 100, our Overall Grade is based on our 24 fundamental indicators, which are broken down into four analytical categories: Growth, Value, Profitability and Cash Flow. All of our indicators and our overall grades are calculated daily for all companies under coverage.


Equal Weighting
All index constituents are equally weighted every time the index is rebalanced. No weight modifications or adjustments are made to the portfolio between rebalance periods.


Liquidity
All index constituents must have a minimum total market cap of USD $200 million and a minimum 3-month daily traded value of USD $2 million. At least 25% of all index components must have a market cap of at least USD $3 billion.


Diversification
No more than 20% of the index (20 companies) may belong to the same economic sector. No more than 20% of the index (60 companies) may be domiciled in the same country.


Rebalance Discipline
The index is rebalanced twice a year, on the third Friday of March and September.

Strategy

The MarketGrader Emerging Markets 300 Index seeks to follow the most fundamentally sound companies with the best growth prospects in all of the emerging world. Since its constituents are equally weighted the index gives each company an equal opportunity to contribute to the performance of the portfolio regardless of market size, sector or business model. It was designed to offer investors who follow market cap weighted benchmarks an alternative way to capture the growth of the emerging world’s economies—the fastest growing in the world—and to complement our other broad, core indexes that provide exposure to the developed markets, including the U.S., as a means to build a comprehensive, truly global equity portfolio.




Licensing Opportunities

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Coral Gables, Florida 33134 USA
Phone (888) 529-1767
Licensing@marketgrader.com




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