TWSE Launches a Corporate Social Responsibility Index
Taiwan Stock Exchange (TWSE) launched a new index on Sept. 11 which focused on corporate governance and corporate social responsibility. It has demonstrated a better performance of back history than the leading tradable index and the existing benchmark index in Taiwan.
TWSE RAFI® Taiwan Corporate Operation 101 Index (abbreviated as “Taiwan CO 101 Index”), compiled by TWSE in cooperation with California-based Research Affiliate, LLC, is the exchange’s second index aimed at encouraging listed companies to fulfill their corporate social responsibility, following the TWSE RA Taiwan Employment Creation 99 Index launched at the end of 2010.
The 101 constituents of the new index are selected by corporate operation indicators, and weighted by fundamental values. One key feature of the new index is the adoption of the Information Disclosure Evaluation System, which is expected to encourage listed companies to put more emphasis on the disclosure of operation information.
As to the cumulative return, the Taiwan CO 101 Index outperformed the Taiwan 50 Index and TAIEX by 56.88 percent and 47.09 percent respectively, during the back history period of 7.5 years.