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FTSE announces the change in the capping methodology in the Ground Rules of the FTSE Vietnam Index Series. The change under Ground Rule 4.4.1 and 4.4.2 will be applicable to FTSE Vietnam Index effective from the September 2011 Quarterly Index Review.
Current Rule:
4.4.1 The FTSE Vietnam Index is capped at review, and aims to reduce any concentration levels that may exist. At the quarterly review, the capping process is applied after the close of business on the third Friday based on the starting constituents of the next trading day. The underlying data used in the capping process is as follows:
4.4.2 The security’s closing price adjusted for corporate events after the close of business on the third Friday of each quarter.
4.4.3 The security’s starting shares in issue figure, its investability weight on the next working day following the third Friday of each quarter.
New Rule:
4.4.1 The FTSE Vietnam Index is capped at review, and aims to reduce any concentration levels that may exist. At the quarterly review, the capping process is applied after the close of business on the first Friday based on the starting constituents of the next trading day following the third Friday of the review month. The underlying data used in the capping process is as follows:
4.4.2 The security’s closing price adjusted for corporate events after the close of business on the first Friday of each quarter.
4.4.3 The security’s starting shares in issue figure, its investability weight on the next working day following the third Friday of each quarter.
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