NEW YORK, Aug. 10, 2015 /PRNewswire/ -- S&P Dow
Jones Indices today announces changes to the S&P U.S. Indices
methodology and additions to the S&P 100, S&P 500, S&P
MidCap 400 and S&P SmallCap 600:
As previously announced in a press release dated January 21, 2015, S&P Dow Jones Indices will
include all publicly listed multiple share class lines separately
in its float market cap (FMC) weighted indices subject to liquidity
and float criteria currently in place for each index. This change
will be effective after the close of trading on Friday, September 18 to coincide with the
September quarterly rebalance. Index membership eligibility for a
company with multiple share class lines will continue to be based
on the total market capitalization of the company including all
publicly listed and unlisted share class lines. The decision to
include each publicly listed line in an index will be evaluated
line by line; the weight of each line will only reflect its own
float, not the combined float of all company lines. There will no
longer be consolidated lines in S&P U.S. FMC indices. It is
possible that one listed share class line may be included in an
index while a second listed share class line of the same company is
excluded. Unlisted share class lines will not be combined with any
other listed share class lines, but unlisted share class lines will
be included when determining a company's total market
capitalization.
For S&P 1500 constituents, listed share class lines not
currently in the index would need to pass current liquidity and
float criteria, but not market capitalization criteria (which is
only considered at the company level). Listed share class line
deletions will be at the discretion of the governing Index
committee and as a result a listed share class may continue to be
included in the index even if it subsequently fails to meet
addition criteria. Alternatively weighted indices that follow the
composition of an S&P Dow Jones FMC index will continue to
utilize the same composition as the parent index.
Below is a summary of the index changes resulting from this
methodology change. All changes will be implemented with the
quarterly rebalance effective after the close of trading on
Friday, September 18:
S&P 100
There are currently four companies with
two or more publicly listed share class lines in the S&P 100.
One of these companies, Google Inc. (NASD:GOOG/ GOOGL) is already
represented by two share class lines in the index.
After the methodology change, current S&P 100 index
constituents Comcast Corp. (NASD:CMCSA/CMCSK), and Twenty-First
Century Fox Inc. (NASD:FOXA/FOX) will each have an additional
listed share class line added to the S&P 100. The current
weight of these companies in the S&P 100 will be distributed
between the two lines representing the company in the index. The
second share class lines of these companies all meet current
liquidity and float criteria for the index. Market capitalization
is measured at the company level only.
Under current methodology, there are 100 companies and 101
trading lines in the index. Effective with the methodology change,
there will be 100 companies and 103 trading lines in the index.
Due to turnover and liquidity concerns, S&P 100 constituent
Berkshire Hathaway Inc. (NYSE:BRK.B) will be an exception to
this rule. S&P Dow Jones Indices will continue to consolidate
the share count for this company under the B share class line.
S&P 500
There are currently thirteen companies
with two or more publicly listed share class lines in the S&P
500. Two of these companies, Discovery Communications Inc. (NYSE:
DISCA/DISCK) and Google Inc. (NASD:GOOG/ GOOGL) are already
represented by two share class lines each in the index.
After the methodology change, current S&P 500 index
constituents Comcast Corp. (NASD:CMCSA/CMCSK), Twenty-First Century
Fox Inc. (NASD:FOXA/FOX) and News Corp. (NASD:NWSA/NWS) will each
have an additional listed share class line added to the S&P
500. The current weight of these companies in the S&P 500 will
be distributed between the two lines representing the company in
the index. The second share class lines of these companies all meet
current liquidity and float criteria for the index. Market
capitalization is measured at the company level only.
Under current methodology, there are 500 companies and 502
trading lines in the index. Effective with the methodology change,
there will be 500 companies and 505 trading lines in the index.
Due to turnover and liquidity concerns, S&P 500 constituent
Berkshire Hathaway Inc. (NYSE:BRK.B) will be an exception to
this rule. S&P Dow Jones Indices will continue to consolidate
the share count for this company under the B share class line.
S&P MidCap 400
There are currently seven companies
with two or more publicly listed share class lines in the S&P
MidCap 400. No additional listed share class lines meet the
necessary liquidity and float thresholds for index inclusion.
S&P SmallCap 600
There are currently eight
companies with two or more publicly listed share class lines in the
S&P SmallCap 600. S&P SmallCap 600 index constituent
Central Garden & Pet Inc. (NASD:CENTA/CENT) will have an
additional listed share class line added to the S&P SmallCap
600. This second listed line meets current liquidity and float
criteria for the index. Market capitalization is measured at the
company level only.
For the above indices, it is possible that certain multiple
share class companies will see a weight decrease in the indices
reflecting the lower market cap impact of only including the share
count from a single listed share class line rather than the current
consolidated share count. Turnover for this change across indices
is expected to be minimal as most currently consolidated lines
already reflect float shares.
For weekly share reviews, 5% share changes will be based on each
multiple share class line rather than total company shares.
A summary of the methodology change can be found in the
following table:
Change
|
Current
Methodology
|
New
Methodology
|
Multiple Share Class
Lines: Effective with the September 2015 rebalance, S&P Dow
Jones Indices is allowing certain listed multiple share class lines
to be included separately in its indices. There will no longer be
consolidated lines in S&P U.S. FMC indices.
|
Companies that have
more than one class of common stock outstanding are represented
only once in an index. The stock price is based on one class, and
the share count is based on the total shares outstanding of all
classes.
|
There will no longer
be consolidated lines in the index. All multiple share class
companies that have listed share class lines will be adjusted for
shares and float such that each share class line will only
represent that line's shares and float. All multiple share class
companies that have an unlisted class line will also be
adjusted.
|
The S&P U.S. Indices methodology document has been updated
on www.spindices.com to reflect these changes.
About S&P Dow Jones Indices
S&P Dow Jones Indices LLC, a part of McGraw Hill Financial,
is the world's largest, global resource for index-based concepts,
data and research. Home to iconic financial market indicators, such
as the S&P 500® and the Dow Jones Industrial Average®, S&P
Dow Jones Indices LLC has over 115 years of experience constructing
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indices than any other provider in the world. With over 1,000,000
indices covering a wide range of asset classes across the globe,
S&P Dow Jones Indices LLC defines the way investors measure and
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www.spdji.com.
S&P® is a registered trademark of Standard & Poor's
Financial Services LLC ("S&P"), a part of McGraw Hill
Financial. Dow Jones® is a registered trademark of Dow Jones
Trademark Holdings LLC ("Dow Jones"). These trademarks have
been licensed to S&P Dow Jones Indices LLC. It is not possible
to invest directly in an index. S&P Dow Jones Indices LLC, Dow
Jones, S&P and their respective affiliates (collectively
"S&P Dow Jones Indices") do not sponsor, endorse, sell, or
promote any investment fund or other investment vehicle that is
offered by third parties and that seeks to provide an investment
return based on the performance of any index. This document does
not constitute an offer of services in jurisdictions where S&P
Dow Jones Indices does not have the necessary licenses. S&P Dow
Jones Indices receives compensation in connection with licensing
its indices to third parties.
For more information:
David
Blitzer
Managing Director and Chairman of the Index Committee
S&P Dow Jones Indices
(+) 212 438 3907
david.blitzer@spdji.com
David R. Guarino
Communications
S&P Dow Jones Indices
(+1) 212 438 1471
dave.guarino@spdji.com
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SOURCE S&P Dow Jones Indices