S&P Dow Jones Indices (‘S&P DJI’) is conducting a consultation with members of the investment community on a potential change to the S&P Sri Lanka 20.
S&P DJI is considering revising the index methodology in order to reduce single sector concentration in the index. The company is seeking consultation particularly for a proposal to add a 35% GICS sector cap which impacts constituent weightings.
As per the proposed methodology, constituent company and GICS sector weights are capped at 15% and 35%, respectively, at each quarterly rebalancing.
Currently, constituent company weights are only capped at 15% at each quarterly rebalancing.
Constituent company and GICS sector weights are capped at 15% and 35%, respectively, at each quarterly rebalancing.
All comments from this consultation will be reviewed and considered before a final decision is made; however there is no obligation to comply with any of the responses, the company said.
S&P Dow Jones Indices further said that an announcement will be made if they decide to change the index methodology.
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