Solactive-BlueStar Israel Q317 Economic Exposure Indexes Fact Sheet
The Solactive-BlueStar Israel Domestic Exposure Index (IDEI) and Solactive-BlueStar Global Exposure Index (IGEI) provide investors with two distinct benchmarks for Israeli equities – designed to reflect the segmentation of the Israeli economy between globally-oriented firms and companies primarily focused on serving the domestic economy. These indexes can be used as vital indicators of Israel’s economic cycles and specific economic trends, as well as tools or vehicles to track the potential risk of geopolitical events in the volatile Middle East. Additionally, these indexes provide insight into the different risk, reward, correlation, yield and other technical and fundamental characteristics of Israeli Global Equities representing Israel’s domestic and global economies.
The Solactive-BlueStar Israel Economic exposure indexes utilize the constituents of its parent index, the BlueStar Israel Global Index – Total Investable Market (BITM). The index methodologies define a company’s economic exposure by the percentage of its revenues derived from the target economic zone – revenue from within Israel for IDEI and revenue from outside of Israel for IGEI. In addition the index methodology provides for several diversification and liquidity limitations. Finally, the index methodology takes into account the importance of balanced, yet representative, sector exposure and diversification within sectors.
Israel Economic Exposure Indexes Relative Performance 2008 – Q3 2017 500
450
400
350
300
250
200
150
100
50 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16
Israel Global Exposure Israel Domestic Exposure BIGI TA-125 MSCI EAFE
www.bluestarindexes.com 1 Solactive-BlueStar Israel Domestic Exposure Q317 Index Total Return (IDEITR) Fact Sheet
INDEX OVERVIEW The Solactive-BlueStar Israel Domestic Exposure Index was developed in partnership by BlueStar Indexes and Solactive AG and is calculated, published and distributed by Solactive AG. The objective of the index is to provide an investable benchmark for investors seeking concentrated exposure to the domestic Israeli equity opportunity. The index includes all companies that are constituents of the parent index, the BlueStar Israel Global Total Market Index (BIGI-TIM), a broad and deep benchmark of Israeli Global Equities, and derive 70% or more of annual revenue from within Israel. The index methodology seeks balanced representation of each sector that is important to all non-export-driven sectors of the economy and non-export components of Israel’s GDP represented in the publicly-traded equities markets. The index takes the same global approach to benchmarking as its parent index by considering companies for inclusion regardless of listing venue. The index utilizes proprietary data from FactSet in determining a company’s geographical revenue exposure. The index is published on a price, net total and gross total return basis in USD and recent prices can be found on Solactive’s website or on the Thomson Reuters Eikon system.
Top Ten Index Constituents GICS Sector/Industry Exposure Company Index Weight (%) Sector IDEI Weight (%) BIGI Weight (%) Bank Leumi Le-israel 7.20 Financials 37.11 16.50 Bank Hapoalim Bm 6.55 Industrials 13.95 4.53 Bezeq The Israeli Telecom Co 4.02 Real Estate 11.12 6.21 Discount Investment Corp-reg 4.01 Energy 10.37 3.91 Shufersal Ltd 3.87 Consumer Staples 9.71 1.28 Israel Discount Bank-a 3.43 Telecommunications Services 7.83 2.68 Mizrahi Tefahot Bank Ltd 3.42 Consumer Discretionary 5.59 2.42 Migdal Insurance & Financial 3.37 Information Technology 3.66 34.59 Harel Insurance Investments 3.23 Health Care 0.66 22.25 Phoenix Holdings Ltd/The 2.58 Materials - 3.63 Total 41.69 Utilities - 2.00
As of Sept. 30, 2017 As of Sept. 30, 2017
Internal Index Data Index Statistics No. of Securities 55 Currency USD Total Index Market Cap $75 billion Max Market Cap $9.2 billion Min Market Cap $179 million Average Market Cap $1.4 billion Listing Venue Weight (%) Weight on TASE 96 Dual-Listed 4 Market Cap- Segmentation (%) > $5 Billion 14 $750 Million to $5 Billion 59 < $750 Million 27 As of Sept. 30, 2017
www.bluestarindexes.com 2 Solactive-BlueStar Israel Global Exposure Q317 Index Total Return (IGEITR) Fact Sheet
INDEX OVERVIEW The Solactive-BlueStar Israel Global Exposure Index was developed in partnership by BlueStar Indexes and Solactive AG and is calculated, published and distributed by Solactive AG. The objective of the index is to provide an investable benchmark for investors seeking concentrated exposure to the segment of the Israeli equity opportunity that best represents Israel's global economic footprint. The index includes all companies that are constituents of the parent index, the BlueStar Israel Global Total Market Index (BIGI-TIM), a broad and deep benchmark of Israeli Global Equities, and derive 70% or more of annual revenue from outside Israel. The index methodology seeks balanced representation of each export-driven sector of the Israeli economy and GDP, and to those companies with significant operating activities outside of Israel represented in the publicly-traded equities markets. The index takes the same global approach to benchmarking as its parent index by considering companies for inclusion regardless of listing venue. The index utilizes proprietary data from FactSet in determining a company’s geographical revenue exposure. The index is published on a price, net total and gross total return basis in USD and recent prices can be found on Solactive’s website or on the Thomson Reuters Eikon system.
Top Ten Index Constituents GICS Sector/Industry Exposure
Company Index Weight (%) Sector IGEI Weight (%) BIGI WEIGHT (%) Perrigo Co Plc 7.12 Information Technology 34.66 34.59 Amdocs Ltd 5.12 Health Care 22.61 22.25 Check Point Software Tech 4.83 Industrials 9.08 4.53 Israel Chemicals Ltd 4.31 Real Estate 8.60 6.21 Teva Pharmaceutical Ind Ltd 4.15 Consumer Discretionary 8.49 2.42 Delek Us Holdings Inc 3.73 Materials 6.56 3.63 Elbit Systems Ltd 3.54 Energy 3.78 3.91 Frutarom 2.24 Opko Health Inc 2.22 Utilities 3.41 2.00 Nice Ltd 2.19 Financials 1.54 16.50 Total 39.44 Telecommunications Services 0.67 2.68 Consumer Staples 0.61 1.28 As of Sept. 30, 2017 As of Sept. 30, 2017 Internal Index Data
Index Statistics No. of Securities 73 Currency USD Total Index Market Cap $149 billion Max Market Cap $19 billion Min Market Cap $83 million Average Market Cap $2.0 Billion Listing Venue Weight (%) Weight on NYSE/Nasdaq Only 44 Weight on TASE Only 13 Dual-Listed 36 Weight on LSE/Singapore/ASX 7 Market Cap- Segmentation (%) > $5 Billion 32 $750 Million to $5 Billion 41 < $750 Million 27 As of Sept. 30, 2017
www.bluestarindexes.com 3 Solactive-BlueStar Israel Economic Exposure Q317 Indexes Historical Risk and Returns Data Fact Sheet
IEEI Performance Relative to Israel Total Investable Market Trailing Twelve Month Comparative Total Returns: 160 Index: 2009 – Q3 2017 Period Ending Q3 2017 140 150
140 130
130 120 120 110 110 100 100
90 90
80 80 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 9/30/2016 12/31/2016 3/31/2017 6/30/2017 9/30/2017 Israel Domestic Exposure Israel Global Exposure Israel Domestic Exposure Israel Global Exposure Israel Total Investable Market
IEEI Relative Performance: 2009 – Q3 2017 160
150
140
130
120
110
100
90
80
70 1/1/2009 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017
Israel Domestic Relative to Israel Global 50-Day SMA 200-Day SMA
© 2016 BlueStar Global Investors, LLC 4 Solactive-BlueStar Israel Economic Exposure Q317 Indexes Historical Risk and Returns Data Fact Sheet
INDEX RISK AND RETURN DATA
Long- Term Total Returns (%) Long-Term Risk: (Standard Deviation of Returns)* (%) 2017 YTD 1yr 3yrs.* 5yrs.* 2017 YTD 1yr 3yrs.* 5yrs.* EAFE 20.47 19.65 5.53 8.87 EAFE 4.78 7.15 12.29 11.75 MSCI EM 28.14 22.91 5.28 4.36 MSCI EM 6.88 9.70 15.73 14.41 MSCI Israel** (1.55) (12.59) (5.75) 1.91 MSCI Israel** 20.87 19.45 18.52 16.09 TA-125 9.70 8.79 1.06 6.36 TA-125 9.90 10.45 14.35 12.83 BIGI 11.36 8.59 1.10 7.73 BIGI 10.88 10.87 12.35 11.12 IGEI 17.11 18.23 7.40 10.83 IGEI 7.33 9.68 12.57 12.08 IDEI 23.64 27.58 7.97 15.74 IDEI 14.31 12.79 16.96 16.20
As of Sept. 30, 2017 As of Sept. 30, 2017 *Annualized *Annualized **MSCI Israel Uncapped **MSCI Israel Uncapped
Five Year Correlations MSCI EM EAFE MSCI Israel TA-100 BIGI IGEI IDEI MSCI EM 1.00 EAFE 0.74 1.00 MSCI Israel* 0.09 0.37 1.00 TA-100 0.41 0.69 0.67 1.00 BIGI 0.43 0.70 0.72 0.85 1.00 IGEI 0.47 0.68 0.75 0.55 0.91 1.00 IDEI 0.44 0.67 0.36 0.42 0.74 0.59 1.00 As of Sept. 30, 2017 *MSCI Israel Uncapped
© 2017 BlueStar Global Investors, LLC 5