Free Float

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Free float restrictions include:

• Trade investments in an index constituent either by another constituent (i.e. cross-holdings) or non-constituent company or entity
• Significant long term holdings by founders, their families and/or directors
• Employee share schemes (if restricted)
• Government holdings
• Portfolio investments subject to a lock in clause, for the duration of that clause

The following are not considered as restricted free float:

• Portfolio investments
• Nominee holdings (including those supporting ADRs & GDRs), unless they
• Represent restricted free float as defined above
• Holdings by investment companies

Free float restrictions will be calculated using available published information. The initial weighting of a constituent in the index will be applied in the following bands:

a) Free float less than or equal to 15% = ineligible*
b) Free float greater than 15% but less than or equal to 20% = 20%
c) Free float greater than 20% but less than or equal to 30% = 30%
d) Free float greater than 30% but less than or equal to 40% = 40%
e) Free float greater than 40% but less than or equal to 50% = 50%
f) Free float greater than 50% but less than or equal to 75% = 75%
g) Free float greater than 75% =100%

* However, a company that has a free float greater than 5% but less than or equal to 15% will be eligible for the index providing the company's full market capitalisation (before the application of any investibility weight) is greater than USD 5.0bn.

A constituent's free float will also be reviewed and adjusted if necessary upon identification of information which necessitates a change in free float weighting following a corporate event. If the corporate event includes a corporate action that affects the index, any change in free float will be implemented at the same time as the corporate action. If there is not a corporate action, the change in free float will be applied as soon as practicable after the corporate event.

Following the application of an initial free float restriction, a constituent's free float will only be changed if its actual free float moves to more than 5 percentage points above the minimum or 5 percentage points below the maximum of an adjacent new band. This 5 percentage points threshold does not apply if the change is greater than one band; therefore a movement of 10 percentage points for the bands between 20% and 50% and 25 percentage points for the bands between 50% and 100% will not be subject to the 5 percentage point threshold. The 15% limit will also not be subject to the 5 percentage point threshold.

Foreign ownership limits, if any, will be applied after calculating the actual free float restriction, but before applying the bands. If the foreign ownership limit is more restrictive than the free float restriction, the precise foreign ownership limit is applied. If the foreign ownership limit is less restrictive or equal to the free float restriction, the free float restriction is applied.