S&P Changes Include Expansion of Global Equity Index

According to the announcement, the index series goes live October 1, 2008, and will provide coverage of 12,400 companies in 83 countries throughout the world. S&P said it made the decision following extensive market consultation and in recognition of the increased investor interest and liquidity in the emerging and frontier markets.

In addition, Standard & Poor’s announced a series of changes that will impact the methodologies of the S&P/Citigroup Global Equity, S&P Emerging Market and S&P Frontier Indices, including:

• Effective October 1, 2008, Standard & Poor’s will redefine the size splits of the S&P Global country indices into a 70%, 15% and 15% split, representing the large, mid and small cumulative available capital level in each country.
• The current Primary Market Index (“PMI”) will be replaced by the new S&P Large-Mid Cap Index, representing 85% of the cumulative available capital (15% of which will be represented by the new S&P Mid-Cap Index), and the current Extended Market Index (“EMI”) will be replaced by the new S&P Small Cap Index, representing the remaining 15% of the cumulative available capital.
• Effective November 1, 2008, the S&P Emerging BMI Index, will become the continuation of the original S&P/Citigroup Emerging index, which already excludes South Korea. In addition, S&P will offer the S&P Emerging BMI Plus, which will include South Korea.
• The premier, liquid and investable emerging market index, the S&P/IFCI, will retain its name. The Index will be a subset of the S&P Emerging BMI Plus Index and will continue to include Korea, as well as other existing markets.
• The newly enhanced S&P Frontier BMI Index will include additional 11 markets for a total of 35 markets. The methodology for inclusion and deletion from this index will remain unchanged.

A whitepaper detailing the changes can be accessed by visiting www.standardandpoors.com/indices and clicking on Policies and Methodologies.