TOKYO, Jan. 22, 2015 /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI"), one of the world's leading providers of financial market indices, today announced the launch of the S&P Japan 500 GIVI Index. As the latest addition to S&P DJI's diversified Japan index fleet, the Index provides Japanese and international investors with an innovative, multi-factor measure that combines intrinsic value with low volatility.

The launch of the S&P Japan 500 GIVI Index also underlines the continuing popularity of the GIVI strategy in Japan, epitomized by the Government Pension Investment Fund (GPIF)'s decision to adopt the S&P GIVI Japan Index as one of the performance benchmarks in 2014.

The S&P Japan 500 GIVI Index is part of the renowned S&P GIVI (Global Intrinsic Value Index) family. It brings together low volatility and an alternative weighting scheme that weights a stock by its calculated intrinsic value, rather than market capitalization, and seeks to provide better risk adjusted exposure to the Japan market. It is designed as a complement to the existing, more extensive S&P GIVI Japan Index and represents the market in a more targeted manner. 

"Mega market trends such as a highly sophisticated investor base and an aging population are driving the gradual change of investment objectives in Japan," observes Vinit Srivastava, Senior Director of Strategy Indices at S&P Dow Jones Indices. "The design of the S&P Japan 500 GIVI Index is intended to provide for higher risk-adjusted returns in the mid- to long-term at a lower level of risk. As an investable benchmark, the new index opens the door to potential product development based upon it."

Low volatility and value are two well-documented, persistent anomalies in the equity markets. In recent years, the two factors have gained greater recognition globally as investors increasingly look for equity exposure at lower risk.

In an overhaul of their portfolio in 2014, the GPIF of Japan announced that they will include factor-based strategies in their mandates and select the S&P GIVI Japan Index as one of the performance benchmarks. This move highlights Asia's increasing awareness and acceptance of the GIVI strategy and factor-based indices in general.

To learn more, please visit: www.spdji.com.

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S&P Dow Jones Indices LLC, a part of McGraw Hill Financial, is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of investors. More assets are invested in products based upon our indices than any other provider in the world. With over 1,000,000 indices covering a wide range of asset classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com.

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SOURCE S&P Dow Jones Indices

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