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FTSE NAREIT US Real Estate Index Series - Update to Free Float Definitions 22 June 2012 |
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In order to provide further transparency in the determination of the free float figures used in the calculation of FTSE NAREIT indices, please note the following clarifications to Section 4 of the FTSE NAREIT US Real Estate Index Series Ground Rules with immediate effect. Existing Rule Free float restrictions include: Shares directly owned by State, Regional, Municipal and Local governments (excluding shares held by independently managed pension schemes for governments). Shares held by Sovereign Wealth Funds where each holding is 10% or greater. If the holding subsequently decreases below 10%, the shares will remain restricted until the holding falls below 7%. Shares held by directors, senior executives and managers of the company, and by their family and direct relations, and by companies that they control. Shares held within employee share plans. Shares held by public companies or by non-listed subsidiaries of public companies. Shares held by founders, promoters, former directors, founding venture capital and private equity firms, private companies and individuals (including employees) where the holding is 10% or greater. If the holding subsequently decreases below 10%, the shares will remain restricted until the holding falls below 7%. All shares where the holder is subject to a lock-in clause (for the duration of that clause). Shares held for publicly announced strategic reasons, including shares held by several holders acting in concert. For clarity, holdings not considered as restricted free float include: Portfolio holdings (such as pension and insurance funds) Nominee holdings (unless they represent restricted free float as defined by Rule 4.8.1.A) Holdings by investment companies ETFs New Rule Free float restrictions include: Shares directly owned by State, Regional, Municipal and Local governments (excluding shares held by independently managed pension schemes for governments). Shares held by Sovereign Wealth Funds where each holding is 10% or greater. If the holding subsequently decreases below 10%, the shares will remain restricted until the holding falls below 7%. Shares held by directors, senior executives and managers of the company, and by their family and direct relations, and by companies with which they are affiliated. Shares held within employee share plans. Shares held by public companies or by non-listed subsidiaries of public companies. Shares held by founders, promoters, former directors, founding venture capital and private equity firms, private companies and individuals (including employees) where the holding is 10% or greater. If the holding subsequently decreases below 10%, the shares will remain restricted until the holding falls below 7%. All shares where the holder is subject to a lock-in clause (for the duration of that clause). Shares held for publicly announced strategic reasons, including shares held by several holders acting in concert. Shares that are subject to on-going contractual agreements (such as swaps) where they would ordinarily be treated as restricted. For clarity, holdings not considered as restricted free float include: Portfolio holdings (such as pension and insurance funds) * Nominee holdings (unless they represent restricted free float as defined by Rule 4.8.1.A) Holdings by investment companies * ETFs * Where any single portfolio holding is 30% or greater it will be regarded as strategic and therefore restricted. The shares will remain restricted until the holding falls below 27%. An updated version of the FTSE NAREIT US Real Estate Index Series Ground Rules can be accessed via the FTSE website.
For index related enquiries or further information about FTSE NAREIT US Real Estate Index Series please contact:
Or, email your enquiries to info@ftse.com, info@nareit.com or visit our website at www.ftse.com |
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