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INDEX PRODUCTS AND RELATED LINKS |
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The FTSE/JSE Index Constituents: Latest Review: March 2011 TOP 40 The top 40 shares listed on the JSE by market capitalization RESI The top 20 resources shares listed on the JSE FINI The top 15 financial services shares listed on the JSE INDI The top 25 industrial shares listed on the JSE SA PROPERTY The top 15 property shares listed on the JSE
Alternative Indices CAPI Constituents are limited to a maximum weight of 10% in the Capped All Share (or Top 40) index. For example, both Anglo American plc and BHP Billiton have weights of more than 10% in the conventional market cap indices. Since their weights are limited to the 10% rule, the other constituents’ weights are gradually increased. This index serves as a better and more appropriate benchmark to evaluate fund management performance than the conventional ALSI index because similar security exposure rules apply in the investment management industry; for example, in unit trust investments the maximum exposure to a large-cap security is limited to 10%, otherwise a 5% rule for small and mid-size capitalization stock applies. SWIX The Shareholder Weighted All Share (or Top 40) index was developed primarily for the institutional investment market where the available (investable) pool of securities in the local market is better reflected. Dual-listed shares, for example, Anglo American plc is primarily listed in London with only about 30% of its free float traded on the local bourse. Exchange control regulations make it basically impossible for institutional investors to acquire substantially more than what is locally available. Hence, these factors are taking into account when constructing the SWIX index. The net result is that the large-cap dual-listed shares are down-weighted in this index and a more equally-weighted index is constructed compared to the ALSI (or Top 40) index.
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