Core Insights - The iEdge Singapore Next 50 indices have outperformed the Straits Times Index, returning over 20% as of August, compared to the STI's 17.4% gain [1] - The launch of these indices reflects a growing investor interest in the next tier of companies beyond the blue-chip giants [3] Government's Vision for Market Development - The strategic importance of the new indices was emphasized by Mr. Chee Hong Tat, highlighting their role in creating visibility and tracking performance across different market segments [2] - The government has implemented policies, including a S$5 billion Equity Market Development Programme, to cultivate interest in these next-tier companies [3] Understanding the iEdge Singapore Next 50 Index - The indices track the next 50 largest companies on the SGX Mainboard, excluding the top 30 by market capitalization, ensuring no overlap with STI constituents [4] Key Selection Criteria - The suite includes two indices: the iEdge Singapore Next 50 Index, weighted by market capitalization, and the iEdge Singapore Next 50 Liquidity Weighted Index, weighted by turnover [5] Heavy Hitters at 5% - Six companies hold a maximum 5% weighting in the market cap-weighted index: Netlink NBN Trust, YangZiJiang Financial Holdings, Suntec REIT, Keppel REIT, ComfortDelGro Corporation Ltd, and CapitaLand Ascott Trust [6] - These companies represent diverse sectors, showcasing Singapore's evolving economy [7][8] Market Capitalization and Liquidity - Suntec REIT and Olam Group are the largest companies in the indices, each valued at S$3.9 billion [10] - The Liquidity Weighted Index features four main companies with a maximum 5% weighting: YangZiJiang Financial Holdings, ComfortDelGro Corporation Ltd, iFAST Corporation, and NTT DC REIT [10] Future Prospects - The indices have a reserve list for potential future inclusions, including Banyan Tree Holdings, AEM Holdings, and Q&M Dental Group [11] - The indices are expected to attract income-focused investors, with the iEdge Singapore Next 50 index offering a 5.85% trailing dividend yield and the Liquidity Weighted index offering 5.44%, compared to the STI's 4.1% yield [12]