Ground Rules

March 2024

FTSE 100 Cumulative
Dividend Points Index
v1.3

lseg.com/en/ftse-russell

FTSE 100 Cumulative Dividend Points Index, v1.3, March 2024

Contents

Section 1 Introduction ......................................................................................................................................................... 3
Section 2 Management responsibilities .............................................................................................................................. 4
Section 3 FTSE Russell Index policies ............................................................................................................................... 5
Section 4 Index methodology ............................................................................................................................................. 6
Appendix A Further information .......................................................................................................................................... 7

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Section 1Introduction

1.

Introduction

1.1

FTSE 100 Cumulative Dividend Points Index

1.1.1

This methodology is to be read in conjunction with the FTSE UK Index Series Ground Rules, which areavailable using the following link: FTSE_UK_Index_Series.pdf

1.1.2

The FTSE 100 Cumulative Dividend Points Index does not take account of ESG factors in its design.

1.2

FTSE Russell
FTSE Russell is a trading name of FTSE International Limited, Frank Russell Company, FTSE Global Debt
Capital Markets Limited (and its subsidiaries FTSE Global Debt Capital Markets Inc. and FTSE Fixed
Income Europe Limited), FTSE Fixed Income LLC, FTSE (Beijing) Consulting Limited, Refinitiv Benchmark
Services (UK) Limited, Refinitiv Limited and Beyond Ratings.

1.3

FTSE Russell hereby notifies users of the index series that it is possible that circumstances, including
external events beyond the control of FTSE Russell, may necessitate changes to, or the cessation of, theindex series and therefore any financial contracts or other financial instruments that reference the index
series or investment funds that use the index series to measure their performance should be able towithstand, or otherwise address the possibility of changes to, or cessation of, the index.

1.4

Index users who choose to follow this index series or to buy products that claim to follow this index series
should assess the merits of the index’s rules-based methodology and take independent investment advice
before investing their own or client funds. No liability whether as a result of negligence or otherwise isaccepted by FTSE Russell for any losses, damages, claims and expenses suffered by any person as aresult of:– any reliance on these Ground Rules;– any inaccuracies in these Ground Rules;– any non-application or misapplication of the policies or procedures described in these Ground Rules;
and/or– any inaccuracies in the compilation of the index or any constituent data.

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Section 2

Management responsibilities

2.

Management responsibilities

2.1

FTSE International Limited (FTSE)

2.1.1

FTSE is the benchmark administrator of the index 1.

2.1.2

FTSE is responsible for the daily calculation, production and operation of the index series, and will:– maintain records of the index weightings of all constituents;– make changes to the constituents and their weightings in accordance with the Ground Rules;– carry out the periodic index reviews of the index series and apply the changes resulting from the reviews
as required by the Ground Rules;– publish changes to the constituent weightings resulting from their ongoing maintenance and theperiodic reviews; and– disseminate the indices.

2.2

Amendments to these Ground Rules

2.2.1

These Ground Rules shall be subject to regular review (at least once a year) by FTSE Russell to ensurethat they continue to best reflect the aims of the index. Any proposals for significant amendments to theseGround Rules will be subject to consultation with FTSE Russell advisory committees and other stakeholders
if appropriate. The feedback from these consultations will be considered by the FTSE Russell Index
Governance Board before approval is granted.

1The term administrator is used in this document in the same sense as it is defined in Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on
indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (the European Benchmark Regulation) and The
Benchmarks (Amendment and Transitional Provision) (EU Exit) Regulations 2019 (the UK Benchmark Regulation).

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Section 3

FTSE Russell Index policies

3.

FTSE Russell Index policies
These Ground Rules should be read in conjunction with the following policy documents, which can beaccessed using the links below.

3.1

Queries and complaints

3.1.1

FTSE Russell’s complaints procedure can be accessed using the following link:
Benchmark_Determination_Complaints_Handling_Policy.pdf

3.2

Index policy for trading halts and market closures

3.2.1

Guidance for the treatment of index changes in the event of trading halts or market closures can be foundusing the following link:
FTSE_Russell_Index_Policy_for_Trading_Halts_and_Market_Closures.pdf

3.3

Index policy in the event clients are unable to trade a market or a security

3.3.1

Details of FTSE Russell’s treatment can be accessed using the following link:
Index_Policy_in_the_Event_Clients_are_Unable_to_Trade_a_Market_or_a_Security.pdf

3.4

FTSE Russell policy for benchmark methodology changes

3.4.1

Details of FTSE Russell’s policy for making benchmark methodology changes can be accessed using thefollowing link:
FTSE_Russell_Policy_for_Benchmark_Methodology_Changes.pdf

3.5

FTSE Russell governance framework

3.5.1

To oversee its indices, FTSE Russell employs a governance framework that encompasses product, serviceand technology governance. The framework incorporates the London Stock Exchange Group’s three lines ofdefence risk management framework and is designed to meet the requirements of the IOSCO Principles forFinancial Benchmarks2, the European benchmark regulation3 and the UK benchmark regulation4. The FTSE
Russell governance framework can be accessed using the following link:
FTSE_Russell_Governance_Framework.pdf

234

IOSCO Principles for Financial Benchmarks Final Report, FR07/13 July 2013.
Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or tomeasure the performance of investment funds.
The Benchmarks (Amendment and Transitional Provision) (EU Exit) Regulations 2019.

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Section 4Index methodology

4.

Index methodology

4.1

Review Methodology FTSE 100 Cumulative Dividend Points Index

4.1.1

The index will represent the cumulative value of ordinary declared cash dividends announced and paid by
the individual constituents of the underlying FTSE 100 Index, calculated in terms of index points. No
adjustment for withholding taxes will be made.

4.2

Ex-dividend adjustment

4.2.1

The ex-dividend (XD) adjustment represents the value of dividends declared by constituent companies on
the XD date expressed in index points. The XD adjustment calculated on a cumulative basis after the closeof the index initiation date on 18 December 2020. XD adjustments are based on declared dividends.
The XDadjustment is calculated as follows:
Market value of dividends
Latest index divisor
If a company declares a dividend in a currency other than GBP, the published GBP equivalent will be used,
if available prior to the XD date. If there is no GBP equivalent, the dividend will be converted to GBP using
the WMR FX Benchmarks 16:00 rate the day before the stock goes XD.

4.3

Corporate actions adjustment

4.3.1

The index will follow the standard FTSE Russell corporate action adjustments as detailed in the following
document except there will be no corrective dividend adjustment after the XD date*:
Corporate_Actions_and_Events_Guide*For example, if a company distributing an ordinary dividend subsequently announces a retraction (i.e.
dividend is no longer being paid), FTSE Russell will not apply a corrective negative adjustment.

4.4

Index calculation example

4.4.1

If company A and B each declared a dividend payment with an XD date of day T, the following calculation
would occur to derive the XD adjustment on day T:
Dividend(p)

Shares(m)Market value(m)Free float factor

XD adjustment(points)

A

12.56

61,443

7,717.2

1.00

1.97

B

14.00

22,5793,161.0

1.00

0.81

Company

Total xd adjustment for index

2.78

Index divisor = 3,918.36

The method for calculating the XD adjustment uses the divisor as at the close of business on the preceding
day after implementing any capitalisation changes. Where a company has more than one line of shares
included in the indices, the XD adjustment is calculated separately for each line.

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Appendix A

Further information
A Glossary of Terms used in FTSE Russell’s Ground Rule documents can be found using the following link:
Glossary.pdf
For contact details, please visit the FTSE Russell website or e-mail FTSE Russell client services at
info@ftserussell.com.
Website: www.lseg.com/en/ftse-russell/

FTSE Russell

7 of 8Disclaimer© 2024 London Stock Exchange Group plc and its applicable group undertakings (“LSEG”). LSEG includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company(“Russell”), (3) FTSE Global Debt Capital Markets Inc. and FTSE Global Debt Capital Markets Limited (together, “FTSE Canada”), (4) FTSE Fixed Income Europe Limited (“FTSE FIEurope”), (5) FTSE Fixed Income LLC (“FTSE FI”), (6) FTSE (Beijing) Consulting Limited (“WOFE”), (7) Refinitiv Benchmark Services (UK) Limited (“RBSL”), (8) Refinitiv Limited (“RL”)
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as a benchmark administrator.
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