INDEX METHODOLOGYMSCI JAPAN HUMAN
AND PHYSICALINVESTMENT INDEX
MSCIApril 2016

APRIL 2016

MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016

CONTENTS

1Introduction ................................................................................ 4

2

MSCI Japan Human and Physical Investment Index Construction 5
2.1

Parent Index ............................................................................................. 5

2.2

Security Exclusion Criteria ........................................................................ 5

2.3

Applicable Universe.................................................................................. 6

2.4

Eligible Universe ....................................................................................... 6

2.4.1

Companies making A high level of physical capital investment .......................6

2.4.2

Companies Making A High Level of Human Capital Investments .....................7

2.4.3

Strong Growth In Physical Capital Investment .................................................7

2.5

Security Selection ..................................................................................... 8

2.5.1

2.6

MSCI ESG research Human Capital Assessment ...............................................8

Security Weighting ................................................................................... 9

2.6.1

Governance Quality Score ................................................................................9

2.6.2

Maximum Issuer Weight Capping ................................................................. 10

3 Maintenance of the MSCI Japan Human and Physical Investment
Index ................................................................................................ 11
3.1

Semi Annual reviews ............................................................................. 11

3.2

Quarterly Index Reviews ........................................................................ 11

3.3

Buffer Rules ............................................................................................ 12

3.4

Ongoing Event-Related Changes ............................................................ 12

3.4.1

IPOs and other early inclusions ...................................................................... 12

3.4.2

Additions and Deletions due to corporate events ......................................... 12

Appendix I: Description of the Quality Score.................................... 13
Appendix II: Description of the Governance Quality Score............... 14
Appendix III: MSCI ESG Research Data ............................................. 15
MSCI ESG Ratings .............................................................................................. 15

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MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016MSCI ESG Controversies.................................................................................... 15

Appendix IV: Definition of Controversy Severity .............................. 16
Appendix V: MSCI ESG Research Human Capital Assessment .......... 17
Appendix VI: Combining the Human Capital Development Score andthe Labor Management Management Score ................................... 19
Appendix VII: Corporate Events Treatment ...................................... 20

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1

INTRODUCTION
The MSCI Japan Human and Physical Investment Index (the “Index”) aims to represent theperformance of Japanese companies that make significant investments in physical andhuman capital. The index aims to include companies which, relative to their sector peers, arespending a high proportion of their revenue on –Physical Capital Investments

Research And Development (R&D) Investments



Human Capital Investments.

Additionally the index targets companies that have strongly increased their investment on
capital goods or R&D while maintaining sales growth. It also targets companies with policies
and programs to develop social and human capital in the labor pool.
Included constituents are weighted using their MSCI Governance-Quality Score to tilt
towards companies with strong governance structure and financial quality. Please refer toAppendix II for a brief description of the Governance-Quality Score. The Governance-Quality
Score is higher for companies with high Return On Equity (ROE), low leverage, sustainableearnings and relatively better board and ownership structure.

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MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016

2

MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEXCONSTRUCTION

2.1

PARENT INDEX
Index construction starts with the MSCI Japan Index (the “Parent Index”). The Index thenexcludes some stocks from the Parent index based on financial, non-financial and liquidity
criteria as listed in section 2.2.

2.2

SECURITY EXCLUSION CRITERIA
Securities from the Parent Index which meet any of the below criteria are not considered forinclusion in the Index.


REITS – Securities that belong to the Industry Group ‘REITS’ in the Global Industry®)
Classification Standard (GICS (GICS codes – 40402010, 40402020, 40402030,
40402035, 40402040, 40402045, 40402050, 40402060, 40402070).



Negative Operating Income – Securities of companies which are operating at a loss
(as measured by the company’s annual operating income) in each of the last 3 fiscal
years.



Net Loss – Securities of companies that have reported a net loss (as measured by
the company’s annual income before extra-ordinary items) in each of the last 3
fiscal years.



Negative Book Value – Securities of companies that have reported a negative bookvalue in any of the last 3 fiscal years.

Frequency of Trading – A security that has traded on fewer than 80% of the trading
days in the twelve months.

Annual Traded Value – 1 year Annualized Traded Value (ATV) is greater than JPY
100,000,000,000.
o

For detailed description of ‘Frequency of Trading’ and ‘Annual Traded
Value’ please refer to the MSCI Index Calculation Methodology at
https://www.msci.com/index-methodology.



ESG Controversies – Securities of companies with a “red flag” as defined by MSCIESG Controversies. Please refer to Appendix III for details.



Labor Rights Controversy – Securities of companies that have faced Very Severe,
Severe ongoing/structural controversies related to labor rights over the past three

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MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016

years (as indicated by a MSCI ESG Research Labor Rights controversy score <=2).
Please refer to Appendix IV for details on the controversy score.


2.3

Human Rights Controversy – Securities of companies that have faced very severe,
severe ongoing/structural controversies related to human rights over the past three
years (as indicated by a MSCI ESG Research Human Rights Controversy score <=2).
Please refer to Appendix IV for details on this controversy score.

APPLICABLE UNIVERSE
Securities from the Parent Index which are not excluded due to the above criteria form theapplicable universe for the Index.

2.4

ELIGIBLE UNIVERSE
Securities from the applicable universe that meet any of the following criteria form theeligible universe. These securities are eligible for inclusion in the Index.

2.4.1

COMPANIES MAKING A HIGH LEVEL OF PHYSICAL CAPITAL INVESTMENT
The level of physical capital investment is assessed using the proportion of company’s sales
accounted for by making investments in physical capital. This metric is calculated as the ratioof average capex over the last 3 years to latest sales.
Capex is the average of capital expenditure made over last 3 years. Capex includes
the expenditure on physical capital investment as well as on research anddevelopment investments.

Sales is measured as the sales reported for the most recent completed fiscal year.
Certain companies do not report Sales: for such companies, Sales is substituted by
the company’s operating income.
As per the MSCI Fundamental Data Methodology, MSCI does not provide sales datafor certain financial sector companies (GICS Industry Group 4010 - Banks, GICS
Industry Group 4020 – Diversified Financials, except sub industry group 40201030 –Multi-Sector Holdings).
For details please refer to MSCI Fundamental Data Methodology at
https://www.msci.com/index-methodology.

Companies which are ranked higher than the bottom 20th percentile by Capex toSales ratio in their respective sectors (GICS Sector) are eligible for inclusion in the
Index.

In the applicable universe, relatively few companies may belong to the Telecom
Services and Utilities sectors industries and these small sectors can cause

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MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016

anomalous inclusion of securities in the Eligible Universe. Hence, securities from
Telecom Services are grouped with securities from Information Technology andsecurities from Utilities are grouped with securities from the Energy sector for the
purposes of sector comparisons on Capex-to-Sales.

2.4.2



The Capex-to-Sales metric is calculated by dividing total Capex over the last three
years by most recent fiscal year Sales. If the Sales for the latest fiscal year isunavailable, then the Capex-to-Sales ratio is not calculated.

When a company changes its fiscal year, the capex and the sales numbers are
considered for the truncated year.

COMPANIES MAKING A HIGH LEVEL OF HUMAN CAPITAL INVESTMENTS
The level of human capital investment is assessed by considering the proportion of acompany’s sales expended on salaries. The metric is calculated as the ratio of latest totalsalaries to the latest company sales.

2.4.3



Salary – As per the most recent reported total salaries (i.e., wage cost) for the full
fiscal year. Salary represents wages paid to employees and officers of the company.
It also includes all employee benefits such as health insurance and contribution topension plans.



Companies which are ranked higher than the bottom 20th percentile in theirrespective sectors are eligible for inclusion in the index



Missing data – Salary data may not be available for some companies: suchcompanies are excluded from the percentile calculation of the level of humancapital investments.

STRONG GROWTH IN PHYSICAL CAPITAL INVESTMENT
Companies which demonstrate strong growth in physical capital investment as well as intheir sales are eligible for selection in the index. These companies meet following conditions
Companies with above sector average growth in capex investment and above sector
average growth in sales.

Capex growth is measured as the percentage change in capex investment over thelast three years.

Sales growth is measured as the percentage change in sales over the last three
years.

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MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016

2.5

If Capex or Sales number for current year or current year – 3 are not available thencapex growth and sales growth are not calculated for that company. Suchcompanies are excluded from the calculation of sector average.

SECURITY SELECTION
From the eligible universe, securities are selected based on their MSCI ESG Research humancapital assessment score. Securities in the eligible universe are sorted in ascending order of
their human capital assessment score. The top 150 stocks are included in the index. In cases
where two stocks have same human capital assessment score, the stock with greater market
capitalization is ranked higher.

2.5.1

MSCI ESG RESEARCH HUMAN CAPITAL ASSESSMENT
MSCI ESG Research provides a human capital assessment score for companies in Japan after
assessing human capital over five dimensions.

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MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016

Figure 1- Five dimensions of the Human Capital score

Source: MSCI ESG Research
For more details on the human capital assessment scores, please refer to Appendix V

2.6

SECURITY WEIGHTING
At each Index Review, all the securities eligible for inclusion in Index are weighted by the
product of their free float market capitalization weight in the Parent Index and Governance
Quality Score. The calculated weights are then normalized to 100%.

2.6.1

GOVERNANCE QUALITY SCORE
Governance Quality Score is calculated asGovernance Quality Score = Governance Score * Quality Score

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MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016

2.6.1.1 GOVERNANCE SCORE
Governance Score is calculated for each security in the Parent Index as per the standard
MSCI Governance Quality Index methodology (available at https://www.msci.com/indexmethodology). For a brief description of Governance Score, please see Appendix II.
2.6.1.2 QUALITY SCOREThe Quality Score for each security in the Parent Index is calculated as per the MSCI Quality
Indexes methodology (available at https://www.msci.com/index-methodology). For a brief
description of Quality Score, please see Appendix I.
2.6.2

MAXIMUM ISSUER WEIGHT CAPPINGThe maximum issuer weight in the Index is capped at 5%.

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3

MAINTENANCE OF THE MSCI JAPAN HUMAN AND PHYSICALINVESTMENT INDEX

3.1

SEMI ANNUAL REVIEWS
The Index is rebalanced on a semi-annual basis, usually as of the close of the last business
day of May and November, coinciding with the May and November Semi-Annual Index
Reviews of the MSCI Global Investable Market Indexes. This approach aims to capture
timely updates to Physical Capital Investment, Human Capital Development, Human Capitaland Labor Management Controversies, Governance and Quality characteristics of thecompanies and coincides with the rebalancing frequency of the relevant MSCI Parent
Indexes. The pro forma Index is in general announced nine business days before theeffective date.

3.2



At each Semi-Annual Index Review – Physical Capital Investment, R&D Investment,
Sales, Operating Income, Net Profit and Book Value are considered as of the latest
annual report from the close of the most recent fiscal year. For the majority ofcompanies in Japan, the fiscal year ends on 31st March.



Governance Quality Score – considered as of the last business day of the previous
month. For May and November Index Reviews, the Governance and Quality Scores
are considered as of last business day of April and October.



Other MSCI ESG Research Data – Impact Monitor Score, Human Rights Controversy
Score, Labor Rights Controversy Score, Human Capital Development Assessment
and Labor Management Management Score are considered as of last business dayof the previous month.

QUARTERLY INDEX REVIEWSThe MSCI Japan Human and Physical Investment Index is reviewed in February andAugust in addition to the Semi-Annual Index Reviews to coincide with the Quarterly
Index Reviews of the Parent Index. During Quarterly Index Reviews, existing constituentsare reviewed for involvement in very severe controversies or a substantial deteriorationof their governance assessment. Existing constituents meeting following conditions aredeleted from the Index during Quarterly Index Reviews –Company’s MSCI ESG Research Labor Rights controversy score is downgraded to 2
or below since the previous Index Review.

Company’s MSCI ESG Research Human Rights Controversy score is downgraded to 2
or below since the previous Index Review.

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MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016

3.3

Company’s ESG Controversy score is downgraded to 0 (‘Red Flag’) since the previous
Index Review.

BUFFER RULES
To reduce Index turnover and enhance Index stability, buffer rules are applied at 20% of the
fixed number of securities in the Index.
For example, the Index targets 150 securities and the buffers are applied between securities
ranked between 120 and 180. The securities in the MSCI Parent Index with a human capitalassessment score rank at or above 120 will be added to the Index on a priority basis. The
existing constituents that have a human capital assessment score rank between 121 and 180
are then successively added until the number of securities in Index reaches 150. If thenumber of securities is below 150 after this step, the remaining securities in the Parent
Index with the lowest human capital assessment score rank are added until the number of
securities in the Index reaches 150.

3.4

ONGOING EVENT-RELATED CHANGES
Ongoing event-related changes in the Parent Index are reflected in the MSCI Japan Humanand Physical Investment Index as follows:

3.4.1

IPOS AND OTHER EARLY INCLUSIONS
IPOs and other newly listed securities will only be considered for inclusion in the Index at thenext Semi-Annual Index Review, even if they qualify for early inclusion in the MSCI Parent
Index.

3.4.2

ADDITIONS AND DELETIONS DUE TO CORPORATE EVENTS
The general treatment of additions and deletions due to corporate events aims to minimize
the turnover in the Index. A constituent deleted from the MSCI Parent Index following a
corporate event or during the Quarterly Index Review of the Parent Index will besimultaneously deleted from the Index.
The exceptions are any spun-off and converted securities, which are added to the Index at
the time of the event.
Please refer to Appendix VII for more details on the treatment of corporate events.
For more information on the implementation of corporate events in the MSCI Global
Investable Market Indexes, please refer to Section 3.3 of the MSCI Global Investable Market
Indexes methodology book available at www.msci.com.

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MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016

APPENDIX I: DESCRIPTION OF THE QUALITY SCORE
The quality score for each security is calculated by combining the z-scores of threefundamental descriptors: Return on Equity, Debt to Equity and Earnings Variability. A given
variable z-score for a security is calculated using the mean and standard deviation of thecorresponding variable computed within the MSCI Parent Index. After calculating
component variable z-scores, a composite z-score for each security is computed by taking anequal-weighted average of the component z-scores. The Quality Score is then computedfrom the composite Z score as follows:
Quality Score =1+Z, 𝑍 >01 − Z −1 , 𝑍 < 0

where Z is the composite z-score described earlier.
For detailed description of the Quality Score please refer to the MSCI Quality Index
Methodology available at available at https://www.msci.com/index-methodology.

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MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016

APPENDIX II: DESCRIPTION OF THE GOVERNANCE QUALITY SCOREThe Governance Quality Score combines the Quality Score and the Governance Score of asecurity and penalizes the Quality Score with a discount factor if the company does not pass
the test on all 11 of the defining MSCI governance measures. The Governance Quality Scoreis thus calculated as below
Governance Quality Score = Quality Score * Governance Score
As the Governance Score ranges between 0 and 1, the Governance Score acts as a discountfactor to a security’s Quality Score. For example, if a company fails the test on only one
governance metric, its Quality Score is discounted by a factor of 0.9.
The Governance Score is calculated on a scale of 0 to 1, such that the scores increase withincreasing standards of corporate governance. The Governance Score of a company ismeasured by combining company’s scores on 10 governance measures. Each Governance
Measure is either directly based on a MSCI ESG Research’s Governance Key Metric score or
combines more than one key metric score. Each key metric is designed as a test (orquestion) and company either passes the test or fails. Company’s key metrics scores are 0 or
1. The 10 governance measures are built on 17 governance key metrics.
For detailed description of Governance-Quality Score, please refer to the MSCI Governance
Quality Index Methodology available at available at https://www.msci.com/indexmethodology.

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MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016

APPENDIX III: MSCI ESG RESEARCH DATA
The Index uses ESG ratings and research provided by MSCI ESG Research Inc. In particular,
the indexes use the following two MSCI ESG Research products: MSCI ESG Ratings and MSCIESG Controversies.
For details on MSCI ESG Research’s full suite of ESG products, please refer to:
http://www.msci.com/products/esg/about_msci_esg_research.html

MSCI ESG RATINGSMSCI ESG Ratings provide research, analysis and ratings of how well companies manage
their environmental, social and governance risks and opportunities.
For more details on MSCI ESG Ratings, please refer tohttp://www.msci.com/resources/factsheets/MSCI_ESG_IVA.pdf

MSCI ESG CONTROVERSIESMSCI ESG Controversies assess controversies concerning the negative environmental, social,
and/or governance impact of company operations, products and services. The evaluation
framework used in MSCI ESG Controversies is designed to be consistent with international
norms represented by the UN Declaration of Human Rights, the ILO Declaration on
Fundamental Principles and Rights at Work, and the UN Global Compact.
For more details on MSCI ESG Controversies, please refer tohttp://www.msci.com/resources/factsheets/MSCI_ESG_Impact_Monitor.pdf

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APPENDIX IV: DEFINITION OF CONTROVERSY SEVERITY
Each controversy case is assessed by MSCI ESG Research for the severity of its impact onsociety or the environment and consequently rated Very Severe (reserved for the very worst
cases), Severe, Moderate, or Minor. To reach these assessments, each case is analyzed
along two dimensions: nature of impact and scale of impact. For more details on MSCI ESG
Controversies, please refer to:
http://www.msci.com/resources/factsheets/MSCI_ESG_Impact_Monitor.pdf

Figure 2 Assessment of Controversy Severity: the severity matrix

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MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016

APPENDIX V: MSCI ESG RESEARCH HUMAN CAPITAL ASSESSMENT
MSCI ESG Research Human Capital Assessment Score is based on MSCI ESG Ratings Human
Capital Development Management Score (0-10) and Labor Management Management Score(0-10). For more details on MSCI ESG Ratings, please refer tohttp://www.msci.com/resources/factsheets/MSCI_ESG_IVA.pdf
MSCI ESG Ratings focus on key ESG issues that can turn into unexpected costs for companies
in the medium to long term. Companies which are assessed on the key issue of Human
Capital Development belong to industries with higher specialization, education, andqualification needs and with higher levels of compensation, based on MSCI ESG Research’s
proprietary database compiled from multiple government sources (e.g. US Bureau of Labor
Statistics). Typical sectors include Financials, IT, Utilities, etc.
For companies which are not assessed on Human Capital Development, Labor Management
is used instead of the Human Capital Assessment Score to evaluate this dimension. The
Labor Management score has a high degree of overlap with Human Capital Development
assessment and is assessed for all companies that are constituents of the MSCI World Index.
Please refer to Appendix VI for details on how the human capital development score andlabor management scores are combined.

Category

Human Capital Development Labor Management

Description

This issue evaluates companies’ ability to
attract, retain, and develop humancapital through strong benefits andtraining programs, efforts to develop
strong employee engagement

1. Training &Development

•
•
•
•
•
•

2. Diversity••

Leadership training & skills
development
Percentage of employees receiving
training*
Training days per employee*
Job-specific development training
programs
Talent pipeline development
strategy
Regular performance appraisals
and feedback processes
Discrimination and workforce
diversity controversies
Percentage of women on executive

This issue evaluates the extent to which
companies invest in human capitalthrough the provision of competitivecompensation, benefits, andperformance incentives; efforts todevelop formal engagement andcommunication channels for employees• Leadership training & skills
development• Percentage of employees
receiving training*• Training days per employee*• Support for degree programs /certification••

Discrimination and workforce
diversity controversies
Labor policy or code of conduct

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MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016••

3. External
Recognition
4.
Compensation& Benefits•

5. Employee
Engagement

•
•
•
•

Controversies

•

•
•
•

•

Other Metrics••

management team*% of women in the leadershiproles**% of female workers in the newhires**
External recognition as employer ofchoice*•••Non-compensation benefits andwork/life balance
Variable component to pay
Employee stock ownership (ESOP)or employee stock purchase plan
(ESPP)
Monitors employee satisfaction
Employee productivity*
Employee turnoverFormal grievance reporting &escalation procedures
Labor management controversies
Collective bargaining controversies•

Average years employed by thecompany for male and female
workers**
Monthly overtime work hours per
employee**

•

•
•

•
•
•

•
•

•
•
•

•

covers anti-discrimination*% of women in the leadershiproles**% of female workers in the newhires**
External recognition as employerof choice*Non-compensation benefits incl.
pension and retirement
Variable component to pay
Employee stock ownership(ESOP) or employee stock
purchase plan (ESPP)
Monitors employee satisfaction
Employee productivity*
Employee turnover*Labor management controversies
Collective bargaining
controversies
Restructuring policies &programs*
Labor-related code of conduct*
Strikes*
Average years employed by thecompany for male and female
workers**
Monthly overtime work hours
per employee**

Source: MSCI ESG Research* Indicates that this metric is collected but may not contribute to score, e.g. due to low data
availability** indicated that this metric is not yet collected nor scored. It is, however, now required bylaw for Japanese companies with more than 300 employees. Based on the assumption thatthe data is provided by the majority of the companies in the MSCI Japan, we will look into
incorporating it into our evaluation of the Human Capital Assessment Score

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MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016

APPENDIX VI: COMBINING THE HUMAN CAPITAL DEVELOPMENTSCORE AND THE LABOR MANAGEMENT MANAGEMENT SCOREMSCI Human Capital Assessment score is computed by combining MSCI Human Capital
Development score and MSCI Labor Management Management Score. The combination is
calculated as follows –Calculate the decile score for each company with a Human Capital Development
Score on a scale of 1st (<10th percentile) to 10th decile ( > 90th percentile)Calculate the decile score for each company with only a Labor Management Score
on a scale of 1st (<10th percentile) to 10th decile ( > 90th percentile)

Select companies at first in the top half (> 5th decile) based on the Human Capital
Development Score and then in top half based (> 5th decile) on the Labor
Management Score.



If the number of selected stocks is fewer than 150 then iteratively first selectcompanies from the 5th decile on Human Development Score and then from 5th
decile on the Labor Management Score.

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MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016

APPENDIX VII: CORPORATE EVENTS TREATMENT
This appendix describes the treatment of the most common corporate events in the MSCI
Indexes. Details regarding the treatment of all other corporate events not covered in thisappendix can be found in the MSCI Corporate Events Methodology book, available athttps://www.msci.com/index-methodology

Event TypeAcquisition

MergerEvent details

ActionIndex constituent acquires anotherIndex constituent

Maintain acquiring
company and remove
acquired company

Index constituent acquiers non
Index constituent

Maintain acquiring
company

Non Index constituent acquiers
Index constituent

Remove acquiredcompany without adding
acquiring company

Index constituent merges with Index
constituent

Add new company with aconstraint factor that is
the weighted average ofthe two constituentsIndex constituent merges with nonIndex constituent

Add new company if MSCI
links its price history to
the Index constituent.
New company not added
if price history is linked to
the non-Index constituent

IPO added to Parent Index

Security will beconsidered for inclusion in
the Index at the next SAIR

Index constituent spins off security

Add spun-off security to
the Index with theconstraint factor of thespinning security, if it isincluded in the Parent

IPO

Spin-off

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MSCI JAPAN HUMAN AND PHYSICAL INVESTMENT INDEX | APRIL 2016

Event TypeEvent details

ActionIndex

Conversion

Security A converted to B, A deleted
from Parent Index, B added

B inherits constraint
factors from A

Country
Reclassification

Domicile of company reviewed:
Security A deleted from country A,
security B added to country B

B inherits constraint
factors from A if it isadded to the Parent Index

Stock exchange
reclassification

Stock exchange (price source) ofcompany reviewed: Security A
deleted, security B added

B inherits constraint
factors from A if it isadded to the Parent Index

Other EventsResulting in Changes
in Number of Sharesand FIFs

Changes in number of shares andsubsequent FIF resulting from otherevents such as share placements
and offerings, and debt-to-equityswaps

No change in Constraint
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APRIL 2016

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