Beacon Global Timber Index (CME: CGTBR)

Index Methodology

The Global Timber Index methodology is comprised of global stocks traded on developed market exchanges that own and/or manage forests and harvest trees for lumber, pulp and other wood-based products. They may also create finished products such as lumber, paper and packaging. The Index constituent selection methodology was developed by Beacon Indexes as a quantitative approach to selecting stocks from a universe of all global timber companies that considers the geographic dispersion of trees. The Index constituent selection model evaluates and selects stocks from a universe of global timber companies using a proprietary, 100% rules-based methodology. The Index constituent selection methodology utilizes multi-factor proprietary selection rules that seek to identify those stocks that offer the greatest potential from a risk/return perspective. The constituent selection process is performed annually and Index rebalance is repeated semi-annually.

Index Construction

  1. Potential Index constituents include all equities trading on major global exchanges from within the defined Index universe and may include ADRs and/or GDRs.
  2. Minimum average daily trading volume greater than or equal to 75,000 shares and minimum average daily trading volume of over $500,000 over the past month.
  3. Market capitalization greater than or equal to $300 million at the time of reconstitution.
  4. Each company is ranked for inclusion using a 100% rules-based methodology.
  5. The companies selected are given a modified market cap weighting. Each company can have a maximum weight of 4.5% at the time of reconstitution.


 

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