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Index Rules*

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FTSE Japan Index

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The FTSE Japan All Cap Index consists of the top 98% of Japan, by full market value, which are eligible for index inclusion. The FTSE Japan Index covers the Large and Mid Cap securities and forms part of the FTSE Global Equity Index Series rules.

Review Dates

The FTSE Japan Index is reviewed annually in September. Any constituent changes will be implemented on the next trading day following the third Friday of the same month.

Rules for Insertion and Deletion at the Periodic Review

  • Establish the Regional Universe:
    • Rank all companies in a region by market capitalisation. For the purpose of ranking, secondary lines are treated as one company
    • Select the top 98% of the total market capitalisation. Exclude companies in the bottom 2%.
  • · Establish the Index Universe:
    • Include only companies valued at more than USD 100m
    • Apply Liquidity Rule
    • Apply Free Float Rule
    • Apply Multiple Lines Rule

Determining constituents for the indices

Companies currently not in the FTSE Japan Index:

  • Companies ranked at or above the top 68% of the Index Universe will be included in the Large Cap Index
  • Companies ranked below 68% but within the top 86% of the Index Universe will be included in the Mid Cap Index

Existing FTSE Japan Index constituents:

  • Existing Large Cap constituents will remain in the Large Cap Index if the are ranked above the 72% of the Index Universe. If they are ranked between 72% and 92% of the Index Universe they will move to the Mid Cap. If they are ranked below 92% of the Index Universe but within the top 99% of the Regional Universe, they will move to the Small Cap. If they are ranked below 99% of the Regional Universe or are valued at less than USD 75m by full market capitalisation they will be excluded from the index
  • Existing Mid Cap constituents will move to the Large Cap if they fall within the top 68% of the ranking described in 6.8. If they are ranked between 68% and 92% of the Index Universe they will remain in the Mid Cap. If they are ranked below 92% of the Index Universe but within the top 99% of the Regional Universe, they will move out of the index and to the Small Cap.