| Index Name |
JPX-Nikkei Index 400
Abbrev.: JPX-Nikkei 400 |
| Index Provider |
JPX Market Innovation & Research, Inc., and Nikkei Inc. |
| No. of Constituents |
400 issues |
| All the eligible constituents |
Common stocks whose main market is the TSE Prime Market, Standard Market, Growth Market |
Constituent Selection/
Review Method |
Constituent selection and review will be conducted as follows.
[Selection Criteria]
Constituents are selected according to the following process and criteria.
-
Screening
a. Screening by Eligibility Criteria
Issues are excluded from selection if they fall under any of the following criteria.
- Listed for under 3 years (excluding technical listings)
- Liabilities in excess of assets during any of the past 3 fiscal years
- Operating deficit in all of the past 3 fiscal years
- Overall deficit in all of the past 3 fiscal years
- Designation as Security to be Delisted, etc.
b. Screening by Market Liquidity Indicator
The top 1000 issues will be selected from those eligible, excluding the above, in consideration of the following 2 items.
- Trading value during the most recent 3 years
- Market capitalization on the base date for selection
-
Scoring based on Quantitative Indicators
The 1,000 issues selected in (1) will be scored according to the ranking of the following 3 items. (1st: 1000 points – 1000th: 1 point). Then, overall score is determined by aggregating those ranking scores with the following weights. (There are handling rules for the overall scoring with negative ROE and operating profit.)
- 3-year average ROE: 40%
- 3-year cumulative operating profit: 40%
- Market capitalization on the base date for selection: 20%
-
Scoring based on Qualitative Factors
Following the scoring in (2), issues will be further scored based on the following matters. This score is complementarily added to the quantitative scores explained above (2)*.
- Appointment of independent directors(Out of the total number of directors, a majority are independent directors.) and female board members/executive officers
- Adoption or Scheduled Adoption of IFRS
- Disclosure of English Earnings Information and/or Corporate Governance Report via TDnet (Company Announcements Distribution Service in English)
* The score is determined so that at most around 10 constituents are different from those chosen with only quantitative score above (2).
-
Determination of Constituents
Following scoring in (3), the 400 issues will be selected as below procedures.
i.Constituents selected in the previous year will be selected as long as their scores are ranked within the top 440.
ii. If 400 issues are not selected in the preceding paragraph i., the top ranking issues according to the rankings in (3) above that meet the two conditions indicated below shall be selected until the number of
constituents reaches 400.
- Either 3-year average ROE or latest ROE surpasses the median ranking in (1).b. above
- Ranking is at or within the top ranking 400 issues in (3) above
iii. If the number of selected issues falls below 400 even after selection according to the preceding paragraph ii., then the top-ranking 400 issues in (3) that were not selected shall be selected according to the rankings of 3-year average ROE until the number of constituents reaches 400.
[Periodic Review]
A constituent review will be conducted on the last business day of August each year with the last business day of June as the base date. (The result of the constituent review will be announced on the 5th business day of August)
Even though the number of constituents in JPX-Nikkei 400 may decrease between
periodic reviews due to the removal of constituents by means other than the periodic review, no supplementary inclusions are made to meet the intended number of constituents (inclusions to meet the intended number of constituents are only made during the periodic review in August).
|
| Calculation Method |
Free-float adjusted market capitalization-weighted (with 1.5% cap) |
| Start of Calculation |
Jan. 6, 2014
Real-time dissemination (per sec) of the index via Tokyo Stock Exchange’s Market Information System |
| Base Date/Base Point |
Aug. 30, 2013 / 10,000 points |
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