ABSTRACT
The market capitalization of constituent companies is reviewed on a quarterly basis to ensure continued eligibility. The index includes the nine European member states of the Organization for Economic Cooperation and Development with a total market capitalization in excess of 2.5% of the total market capitalization of all countries included in the index. The HSBC James Capel Smaller European Companies Index is a market value-weighted index that tracks the daily price only performance of a universe of small company stocks listed on 17 European markets with an internationally recognized exchange. Constituent stocks are selected and assigned base weightings using as criteria the effective share volumes on the selected local stock exchange over a period of three years. The index was reconstructed by James Capel Quantitative Research, with data and methodology audited by the WM Company, back to December 31, 1985, using rules in effect as of 1990 to establish appropriate country weights and market capitalization data as of that date.
