FTSE Renaissance Global IPO Index Series Ground Rules v1.4x

SECTION 10
10.4.2 When a corporate event causes the investable market capitalization of a constituent to exceed
the maximum weight permitted of the total index market capitalization intra-review, it is
capped at the maximum weight permitted; concurrently, any existing constituents whose
weights are greater than the maximum weight permitted are capped at the maximum weight
permitted. The following data is used in the capping algorithm:
a) a security’s price and free float are used as at the close of business on the date the
corporate action takes effect in the index.
b) a security’s shares in issue and its investability weight adjusted for corporate events are
used as at the close of business on the date the corporate action takes effect in the
index.
If it is the review month, the index will be capped again after the close of business on the
third Friday of the review month.
10.5 Interim capping outside of the review process
10.5.1 Companies added to the Index intra-review that would have a weighting of more than the
maximum weight permitted are capped; concurrently, any existing constituents whose
weights are greater than the maximum weight permitted are also capped at the maximum
weight permitted. When there is an interim addition outside of the review process that
requires capping, it will be capped based on the price and free float as at the close of business
on the first day of trading. It will be added to the index after the close of its first trading day.
If the interim addition does not require capping, the capping factor of the existing index
constituents (if any) will remain the same. The following data is used in the capping
algorithm:
a) a security’s price and free float are used as at the close of business on the first day of
trading.
b) a security’s shares in issue and its investability weight adjusted for corporate events are
used as at the close of business on the first day of trading.
10.5.2 When a corporate event causes the investable market capitalization of a constituent to exceed
the maximum weight permitted intra-review, it is capped at the maximum weight permitted;
concurrently, any existing constituents whose weights are greater than the maximum weight
permitted are also capped at the maximum weight permitted. If the interim corporate action
does not require capping, the capping factor of the existing index constituents (if any) will
remain the same. The following data is used in the capping algorithm:
a) a security’s price and free float are used as at the close of business on the date the
corporate action takes effect in the index.
b) a security’s shares in issue and its investability weight adjusted for corporate events are
used as at the close of business on the date the corporate action takes effect in the
index.
Ground Rules for the Management of the FTSE Renaissance Global IPO Index Series 21
Version 1.4 April 2013