ABSTRACT
Indices should be constructed, maintained and calculated according to a set of published objectives, including rules and guidelines. The index should be relevant and appropriate. The index should track the relevant markets, market segments, instruments, individual securities and investment style. The index should be constructed so that each security's return is weighted according to its market value at the beginning of the period the return is measured. The index should be maintained accuratly and reliably, with a stated corrections policy regarding prices, capital changes, dividends, and exchange rates to reflect the actual changes in the value of the portfolio instead of the influence of other factors. The latter includes cash dividends recorded in the period received and reinvested at the earliest date in the market. Index results should be published frequently, be disseminated on a timely basis and be readily available to investors.
