SGI Methodologies

Our indices follow a set of common rules in a move to make the indices fully transparent, but also fully investable by reducing uncertainity and thus operationnal and market risks associated with ordinary and exceptionnal events.

Equity Indices
The Equity Indices are indices designed to reflect the performance of a basket of equities; such indices are always managed in a three layer manner:
The first layer is the selection layer, where potential index members are screened for relevance in entering the Index.
The second layer is the allocation layer, where index members are weighted according either to their market value with free float and capping adjustments, or are weighted according to a fundamental scoring.
The third layer is the calculation in itself: weights and adjustments are transformed into a number of shares; index level is computed using a classical Laspeyres framework; ongoing maintenance is performed on a daily basis by our Index Calculation Agents using the rules set out in the methodology.

Version 1.0 of the methodology introduced the common management rules of Equity Indices;

Version 1.1 made clearer how some specific cases of rights distributions impact the Index;

Version 1.2 introduced a two stage rebalancing process, where the number of shares are determined ahead of the rebalancing date, and Index Divisor is adjusted for continuity on the rebalancing date.
SGI Methodology