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

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SECTION 10 10.5.3 The algorithm is applied to each constituent of the indices listed below that requires capping, i.e. any constituent whose uncapped weight is greater than the maximum respective weight permitted by each index: • FTSE Renaissance Global IPO Capped Index (IPOSGC) • FTSE Renaissance US IPO Investable Index (IPOST) • FTSE Renaissance US IPO Capped Index (IPOSC) • FTSE Renaissance Hong Kong/China Top IPO Index (IPOSHKT) • FTSE Renaissance Asia ex HK/China ex Japan IPO Index (IPOSA) • FTSE Renaissance EMEA IPO Capped Index (IPOSEC) The Constituent Capping Factor c is given by: Where, = I × ( p × s × f ) • i denotes the security to be capped. • j denotes an uncapped security. c i i Z i ( p × s × f ) Ground Rules for the Management of the FTSE Renaissance Global IPO Index Series 22 Version 1.4 April 2013 i ∑ j∈J • J is the subset of securities that are uncapped. • p is the official closing price of the k security. • s is the number of shares in issue of the k security. • f is the free float factor of the k security. • I is the percentage of the index represented by all uncapped constituents. • Z is the percentage capping level. j j j
SECTION 10 STAGE ONE STAGE TWO In Stage One, any constituents whose weights are greater than the maximum weight permitted are capped at the maximum weight permitted. The weights of all lower ranking constituents are increased as a consequence of reducing the weights of the bigger stocks. The remaining lower ranking constituents are then checked and if they exceed the maximum weight permitted they are also capped at the maximum weight permitted. This process is repeated until no constituent weight exceeds the maximum weight permitted. Indices that impose a 20% cap on their constituents move on to stage two below: a) If it is necessary to apply the provisions of Stage Two, only one constituent will have a 20% weight in the index. If more than one stock is capped at 20%, then weights of all subsequent constituents previously capped at 20% are changed in accordance with the rules detailed below. For example, if the second largest stock is capped at 20% its weight will be reduced to 15% as given in (c) below. The process is then continued from the relevant point in the steps below. b) If the weight of the largest constituent is greater than 20% the constituent’s weight is capped at 20% and the weights of the lower ranking constituents are increased correspondingly. c) If the weight of the second largest constituent is greater than 15% the constituent’s weight is capped at 15% and the weights of the lower ranking constituents are increased correspondingly. d) If the weight of the third largest constituent is greater than 10% the constituent’s weight is capped at 10% and the weights of the lower ranking constituents are increased correspondingly. e) If the weight of the fourth largest constituent is greater than 5% the constituent’s weight is capped at 5% and the weights of the lower ranking constituents are increased correspondingly. f) If the weights of the fifth largest constituent and any lower ranking constituents are greater than 4% those constituents’ weights are capped at 4% and the weights of lower ranking constituents are increased correspondingly. g) Following the application of Stage Two, the weights of each constituent are checked and Stage Two is repeated until no threshold is breached. The process is repeated until the total index weight of those constituents whose individual weights exceed 5% is not greater than 50% in aggregate. Ground Rules for the Management of the FTSE Renaissance Global IPO Index Series 23 Version 1.4 April 2013
Page 1 and 2: Version 1.4 April 2013 GROUND RULES
Page 3 and 4: SECTION 1 1.0 INTRODUCTION 1.1 This
Page 5 and 6: SECTION 1 ASIA PACIFIC FTSE Renaiss
Page 7 and 8: SECTION 1 EMERGING MARKETS FTSE Ren
Page 9 and 10: SECTION 3 3.0 INDEX MANAGEMENT 3.1
Page 11 and 12: SECTION 4 4.3 Stapled Units 4.3.1 F
Page 13 and 14: SECTION 5 5.5 Screening Process 5.5
Page 15 and 16: SECTION 6 6.5 Changes in Free Float
Page 17 and 18: SECTION 7 7.4.3 In the case of a co
Page 19 and 20: SECTION 9 9.0 FTSE RENAISSANCE GLOB
Page 21: SECTION 10 10.4.2 When a corporate
Page 25 and 26: SECTION 12 12.0 INDEX QUALIFICATION
Page 27 and 28: APPENDIX A INDEX OPENING AND CLOSIN
Page 29 and 30: APPENDIX B Emerging Europe Country
Page 31 and 32: APPENDIX C Developed Europe continu
Page 33 and 34: APPENDIX E CLOSING PRICES USED FOR
Page 35: APPENDIX F FURTHER INFORMATION For

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

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