Treatment of Company Suspensions - Update to Corporate Actions andEvents Guide for Market Capitalisation Weighted Indexes
28 June 2018
In response to feedback from the January 2018 consultation on the Treatment of Suspensions, the FTSE
Russell Product Governance Board has approved the following methodology change which is effective
immediately (changes are highlighted in bold).
Section 3: Treatment of Index Events
4.18 Suspended Companies*
If a constituent is suspended, FTSE Russell will determine its treatment as follows:If a constituent is declared bankrupt without any indication of compensation to shareholders,
the last traded price will be adjusted down to zero value+ and it will subsequently be removed
from the index with appropriate notice (typically T+2).

In all other cases, the constituent will continue to be included in the index for a period of up
to 20 business days at its last traded price.

If the constituent continues to be suspended at the end of that period, it will be subject toreview and a decision will be taken to either allow the constituent to remain in the index for afurther period of up to 20 business days or to remove it at zero value. In making thisdetermination, FTSE Russell will take into account the stated reasons for the suspension.
These reasons may include announcements made by the company regarding a pending
acquisition or restructuring, and any stated intentions regarding a date for the resumption oftrading.

If the suspension period reaches 60 business days the constituent will be removed
from the index at zero value at the next index review, subject to the the 60th
business day of suspension falling on or before the Friday four weeks prior to theindex review implementation date. Where the 60th business day of suspension falls
after such date the constituent will be reviewed for removal at a subsequent index
review.

In certain limited circumstances where the index weight of the constituent is significant andFTSE Russell determines that a market-related value can be established for the suspended
constituent, for example because similar company securities continue to trade, deletion may
take place at the market-related value instead. In such circumstances, FTSE Russell will set
out its rationale for the proposed treatment of the constituent at the end of the 60 business
day period.

If following the end of the 60 business day period, a suspended constituent
resumes trading in advance of the index review lock-down period (i.e. the two week
period prior to the index review effective date) in March, June, September orDecember, the deletion notice will be rescinded and the constituent will be retained

in the index. However, where the constituent resumes trading during the index
review lock-down period, the constituent will continue to be removed from theindex as previously announced but in these circumstances the deletion will instead
be implemented at market value unless there are barriers that render a market
value irreplicable. In this event, the company will continue to be removed at zero.
If a constituent has been removed from the index and trading is subsequently restored, theconstituent will only be re-considered for inclusion after a period of 12 months from its
deletion. For the purposes of index eligibility it will be treated as a new issue.
*The Suspended Companies policy also applies to constituents which have a price that FTSERussell considers to be unreliable. This includes Indonesian constituents that have reachedthe minimum allowable trade price of IDR 50 per share.

An updated copy of the Corporate Actions and Events Guide for Market Capitalisation Weighted Indexes(v3.7) is now available on the FTSE Russell website: www.ftserussell.com
The following ground rule documents have also been updated:

FTSE MIBFTSE JSE Africa Index Series
FTSE JSE All Africa Index Series
FTSE China A-H 50 Index

For further information please contact FTSE Russell Client Services at info@ftserussell.com or call:
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