These changes include a reduction in the market capitalization of Berkshire Hathaway by 25% to reflect corporate cross-holdings. The adjustment will be implemented in five monthly increments beginning with February month-end share adjustments and continue by approximately 5% on each subsequent month-end until the total 25% reduction is achieved. The exact amount of the change will be announced during Wilshire’s standard pre-announcement process.
Also, as of June 30, 2003, Wilshire will adjust its shares to account for Rule 144A restrictions with a market capitalization of $100 million or greater. This is a change from Wilshire’s previous adjustment threshold of a market capitalization of $1 billion or greater.
Finally, securities that stop trading for extended periods will see an adjustment in how they are listed. If a security’s price is no longer “readily” available, in any given month, it will stay in the index for two month-ends at the last trade price. On the second month end, if it has not resumed trading then it will be dropped from the index and given the last pink sheet price. If a pink sheet price does not exist then a price of $0 will be used.
More information can be found at www.wilshire.com .