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 2015 | USD 1,583,300,000 |
| Revenues in index country | USD 1,583,300,000 |
| % of Total Revenues | 100% |
| Sector | |
|---|---|
| Company | Aurizon Holdings Ltd. |
| Incorporated | Australia |
| Total Revenues in 2016 | USD 2,576,555,800 |
| Revenues in index sector | USD 1,401,533,100 |
| % of Total Revenues | 54% |
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.