Pure-Play
In today's globalised economies, company revenues and assets are no longer primarily derived from the country of origin (where a company is incorporated) or from just one business sector. The unique MVIS pure-play concept reflects this development and responds to changing economic landscapes. It also opens up markets that are traditionally difficult to access.
Pure-Play Exposure on a Country or Regional Level
Local exposure is expanded to include non-local companies that generate at least 50% of their revenues (or, where applicable, assets) in the target country or region.
Pure-Play Exposure on a Sector Level
To achieve pure sector exposure, companies included in a MVIS® sector index must generate at least 50% of their revenues (or, where applicable, assets) from the target sector.
Pure-Play Selection Criteria
(example values based on previous index reviews)
| Country | |
|---|---|
| Company | Fresnillo plc |
| Incorporated | United Kingdom |
| Total Revenues in 2017 | USD 2,093,308,000 |
| Revenues in index country | USD 2,093,308,000 |
| % of Total Revenues | 100% |
| Sector | |
|---|---|
| Company | Aurizon Holdings Ltd. |
| Incorporated | Australia |
| Total Revenues in 2018 | USD 2,413,100,000 |
| Revenues in index sector | USD 1,400,600,000 |
| % of Total Revenues | 58% |
The table above illustrates an example of the pure-play concept applied on a country and sector level, i.e. for the MVIS® Mexico Index (Fresnillo plc) and the MVIS® Global Coal Index (Aurizon Holdings Ltd.).
Fresnillo plc as a non-local component meets the pure-play requirements as well as all other selection as defined in the MVIS® Global Equity Index Guide, and is selected for the MVIS® Mexico Index.
Aurizon Holdings Ltd. also fulfills the pure-play rule and all other rules in the index selection process and is selected for the MVIS® Global Coal Index.