Future Tech Series 6
iEdge Artificial Intelligence & Robotics 10 EW 5% Decrement NTR Index
The Index is an equally weighted index measuring the performance of the underlying basket of stocks after deducting a constant and pre-determined synthetic dividend at a constant frequency.
The underlying basket of stocks comprises the following 10 US or European listed securities that are involved in artificial intelligence and/or robotics either by providing relevant hardware solutions, software and algorithmic artificial intelligence solutions or are engaged in the industrial applications of artificial intelligence or robotics:
Index Mechanics
- The Index is equally weighted across a basket of 10 securities, ensuring no single stock dominates performance. Each of the components are re-weighted to 10% on a quarterly basis in March, June, September, and December.
- The Index is net total return, meaning it includes the reinvestment of dividends after deducting any withholding taxes.
- The 5% decrement is a synthetic dividend which is subtracted from the index value at a constant rate of 5% per year (accrued daily). This decrement models a regular distribution, impacting returns in a predictable manner.
Investors should be aware that the interest cost on a limited recourse loan provided for an investment linked to the performance of an equivalent index without the 5% decrement mechanism would result in significantly higher interest level payable of ~10% p.a. As such, the decrement mechanism enables investors in Series 6 to gain cost efficient exposure.
Refer to https://www.sgx.com/indices/products/airo10dn for further information.