Copenhagen Stock Exchange: Future KAX And KBXcap Portfolios, Including Number Of Shares Per Share Class

As announced in their press release of 2 December 2003, the Copenhagen Stock Exchange will in future calculate the weights for the capped indices KAXcap and KBXcap every week as opposed to every six months. At the same time the Exchange lowers the capping thresholds of a company's maximum weight, and the thresholds for how much companies with significant shares in the index may weight in the aggregate.

The capped indices are primarily used for benchmarking by investment funds, which are subject to the so-called UCITS rules or the 40-10-5 rule. According to the UCITS rules a single company may not weight more than 10 per cent of the portfolio. In addition, the group of companies that weight more than 5 per cent may not exceed 40 per cent in the aggregate.

With a view to reducing the probability that a capped portfolio will have to be re-balanced at the weekly control calculation, the Copenhagen Stock Exchange sets up a framework or a buffer within which the group of capped companies may move.

The framework means that the Exchange will initially cap the index portfolios at thresholds of 36-9-4.5, and only if the 40-10-5 thresholds of the UCITS rules are exceeded will the Exchange re-balance the portfolio to the thresholds of 36-9-4.5.

The new weights
The weights for the capped indices have now been fixed on the basis of today's index prices at the close of business. The portfolios become effective on 2 January 2004.

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