Fast-Forward to The Potential-Packed Future

The automotive industry serves not only as a pillar of value flow in society, but also as a strategic base for advanced manufacturing upgrades. Under the themes of intelligence, electrification, and globalization, automotive cross-industry integration makes it a crucial hub for economic growth and a key focus for investment.

The PRMC Automotive Index, as a part of the Primary PRMC Index, includes three Sub-Indices and over 600 equity securities. Built on scientific, systematic compilation and precise equity composition, it aims to provide the capital ecosystem with comprehensive data and tools that are both forward-leading and industry-representative, empowering investors and professionals to navigate and act with confidence.

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PRMC Auto Index Methodology

Eligible Equity Securities Identification

Index Complication

Index Maintenance

Eligible Equity Securities Identification

The equity securities from the Premier Global Investable Company Pool undergo a three-step evaluation process to assess their eligibility for investment in the automotive sector. Companies with securities that successfully pass the systematic assessment are added to the global pool of automotive investable companies.

Upon completion of the screening criteria above,
the retained is the global pool of investable companies.

Index Complication

The Index compilation process consists of four specific steps: Global Industry Classification Standard (GICS®) matching, Sub-Index allocating, industry exposure score & weight setting.

GICS^® Matching

The GICS^® Code of each listed company is matched against the investable companies in the global automotive industry. Only the companies with GICS^® codes that align with the listed industries are eligible for inclusion in the Primary Index.

Industry Exposure Score Setting

After completing the GICS^® matching, the Premier Index Committee, in collaboration with industry experts, assigns an automotive industry exposure score to each selected company. This score measures the company's influence within the global automotive industry and serves as the basis for the subsequent matching of constituent stocks with Sub-Indexes. It is also linked to the component weight limits to ensure that the Index scientifically and accurately reflects the overall performance of the global automotive industry.

Sub-Index Allocating

Upon completion of the GICS^® matching, each listed company is allocated to the appropriate Sub-Index based on its industry exposure score. This allocation is driven by the company's exposure across sub-industries, with the highest score determining its final placement within the Sub-Index.

Weight Setting

The Premier Automotive Index employs a market capitalization weighting method to prevent companies with larger capitalizations from holding excessive weight in the Index, which could affect the overall industry representation. The market capitalization weights for each constituent stock are determined based on the assigned industry exposure scores.

Index Maintenance

The Premier Index Committee regularly updates and optimizes the structure and constituents of the Index to ensure that it accurately reflects the overall state of the global automotive stock market. This comprehensive process involves four main aspects: rebalancing, spin-offs, additions, and deletions.

Rebalancing

The Index is rebalanced on an annual basis and is effective after the last trading day of June. The reference date for rebalancing is the last trading day of May. The Index shares are calculated based on the prices from the seven trading days preceding the rebalancing effective date.

Spin-offs

Securities of spin-off companies are incorporated into the Index at zero price on the day before the ex-dividend date, as part of the parent company's securities. The weight of the spin-off company in the Index is determined based on the spin-off ratio. If a spin-off company is confirmed to be ineligible to remain in the Index, it is removed after at least one day of regular trading.

Additions

Companies that meet the screening criteria can be included in the Index during the annual rebalancing.

Deletions

The weight of deleted companies is proportionally redistributed among the remaining Index constituents to ensure that the relative weights of all Index constituents remain unchanged.

Index Maintenance

PRMC Index Committee

The Premier Index Committee is responsible for the maintenance of the Index. All members of the Committee are full-time professionals from Premier Consulting. The Committee holds regular meetings to review and assess various matters. During each meeting, the Committee evaluates potential corporate actions that could impact Index constituents, compares the Index composition with relevant market statistics, considers potential candidates for inclusion in the Index, and addresses any significant market events. Additionally, the Committee has the authority to revise Index policies related to the selection of companies, handling dividends, the number of shares, or other pertinent matters.

The Premier Index considers information regarding changes to the Index and related issues as potential market indicators and material data. Therefore, all discussions conducted by the Index Committee are required to be kept confidential.

The Premier Index Committee reserves the right to make exceptions to the Index calculation methodology when deemed necessary. Any deviations from the general rules outlined in this document or supplementary materials are to be communicated to clients with as much advance notice as possible.

In addition to the daily management of the Index and maintenance of its calculation methodology, the Committee conducts a review of the methodology at least once every 12 months to ensure that the Index continues to meet its objectives, while data and methodology remain effective.