RE: Gdxj19 Sep 2020 01:07
cryptOr:
Just for you mon cherie.......
RE: BREAKING GDXJ News16 Sep 2020 14:07
Ok this is BREAKING news people: On Fri 11 Sept, MVIS allocated 0.44%. GGP weighting in their GDXJ index.
BUT I and a few others - AimTrader flagged it (clap clap emoji) - were quite confused. We realised MVIS may have allocated the incorrect free float to GGP in their index calculations.
They allocated 2390m shares... but I counted circa 3300m free float. Therefore, I decided to formally complain and challenged MVIS to produce the share they register used to calculate their weighting. Initially, their reply came back, sod off:
"We use publically available information when determining the free float of a company. As per the Section 3.1 of the MVIS Global Equity Index Guide (https://www.mvis-indices.com/index-guides) “the number of shares outstanding is reduced to exclude closely held shares (amount larger than 5% of the company’s full market capitalisation) from the index calculation.”
So I persisted... And the reply came back: "According to rules in the MVIS Global Equity Index Guide, all shareholders with >5% holdings are blocked"
So I persisted…
IF I am correct, I calculate the MVISS GDXJ should be closer to 0.65% allocation. A whopping 50% increase on the $29m investment due on Friday... in fact it's NOW over $44m. Now this is clearly a massive ****-up. I'm not sure that they will sort it out in time for Friday’s purchase, but I sincerely hope they do.
Basically, for want of a better phrase, IMO they’ve Right Royally Fooked Up... and Big time.
What they have done is count the shares held by the big Nominees: Hargreaves Lansdown (777m 20.43%) , Interactive Investor (329m 8.68%) and Halifax Share dealing Ltd (284m 7.51%) as “three institutional holdings over 5%”, when clearly they are not. They are, ironically perhaps the most illiquid part of the free float.
"Incongruous” I shouted back at them. In no uncertain terms.
And Yesterday morning I received a reply:
Dear Hydro:
"We initiated yesterday a process according to our Complaints Policy, which is required by the European Benchmark Regulation. An additional research is currently performed by the team. It will then be reviewed by the senior management and the result will be presented to the Independent Oversight Function for their final decision. In general, float research is done for several thousand of companies within a short amount of time and most recent data are preferred to represent the ownership structure of a company. As some data vendors have a higher capacity of getting more up-to-date information from share registries, we also rely on their data. In case an update will be done, it will be announced to the public on our website."
Not sure where this lands peeps, but it’s got to be North of here… significantly.
I will have Bottle Rocket post redacted correspondence over on www.GGPHelp.co.uk
Hold for gold. GLA Hydro
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