RE: Upcoming fund purchases23 Nov 2020 21:36
Hydrogen - you know all about this sort of 'stuff'......
So the weighting afforded GGP on the MSCI (UK) INDEX is 2.27%
The MSCI is explained thus:
"... How They Work
MSCI selects stocks for its equity indexes that are easily traded and have high liquidity. The stocks must have active investor participation and be without owner restrictions. MSCI must balance accuracy and efficiency. It must include enough stocks to represent the underlying equity market. At the same time, it can't have so many stocks that ETFs and mutual funds can't mimic the index.
Each Index sums up the total value of all stocks' market capitalization. That's the stock price multiplied by the number of outstanding shares.
The S&P 500, but not the Dow, uses the same methodology.
Market caps are calculated in both U.S. dollars and in local currency. That gives you an idea of how the index is doing without the impact of exchange rates.
Each index is updated daily. Additionally, each index is reviewed quarterly and rebalanced twice a year.
That's when its manager adds or subtracts stocks to make sure the index still accurately reflects the composition of the underlying equity market it measures.
Juicy bit:
For that reason, MSCI Indexes have the power to change the market. When an index is rebalanced, all the ETFs and mutual funds that track it must buy and sell the same stocks. Stocks that are added to the index usually find their share prices rising. The opposite happens to stocks that are dropped from an index. ..."
I am guessing we can't know what each tracker of this index must spend on GGP shares - correct? [Unlike the GDXJ ETF of a few weeks back].
But as described above...I take from it that the amount is not 'insignificant'...maybe?
And this purchasing of shares in our case, must be completed by the end of November (next Monday).
https://www.thebalance.com/msci-index-what-is-it-and-what-does-it-measure-3305948
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