NZX initiated the review, which included extensive consultation with brokers, fund managers and listed companies, to bring its methodology more closely into line with international best practice.
“The way indices are calculated varies widely across exchanges and economies. NZX has elected to align our practices with the methodology of major international index providers Standard and Poors and MSCI, and we'll review our indices on a regular basis to ensure they keep up with the demands of our evolving market,” said NZX Index Manager Sam Brodie.
Amongst the changes to be phased in are new liquidity criteria designed to reduce unnecessary index turnover, the removal of imputation credits in calculations of returns, and a new name for the NZSX indices.
“NZX recognises the value of having our company brand more closely linked with the leading index names, hence the decision to rename the primary indices,” said Brodie. “
Consistent with this change, the NZSX SCI Index will become the NZX SmallCap Index, comprising companies with a market capitalisation of up to $150 million. They include companies such as Metlifecare, Skellmax Industries and NZX itself.
Changes to the liquidity criteria will take effect immediately. The new calculation for returns will come into force on 1 October 2005. The index name change phase-in period will commence on 1 July, with final implementation by 1 October.
|
Current name |
New name |
| NZSX 50 Index | NZX 50 Index |
| NZSX 15 Index | NZX 15 Index |
| NZSX 50 Portfolio Index | NZX 50 Portfolio Index |
| NZSX 10 Index | NZX 10 Index |
| NZSX MidCap Index | NZX MidCap Index |
| NZSX SCI Index | NZX SmallCap Index |
| NZSX All Index | NZX All Index |
| NZAX All Index | No change |
| NZX Debt Indices | No change |
