Harmonising the SWIX and ALSI methodologies to have a single representative benchmark index is not a new topic. In fact, over the past few years there’s been much talk about the need for it, with the JSE initiating multiple public discourses on how to make this a reality. In the past, the differences between the SWIX and ALSI methodologies have been significant, making harmonisation a potentially disruptive exercise. Following the natural alignment between the indices in the past few years, the time is now right for harmonisation to occur, given that there are only a few, somewhat arbitrary, remaining differences between the SWIX and ALSI indices. Note for the remainder, we will refer only to the SWIX and not the Capped SWIX as these are virtually equivalent currently following Naspers’ reduced index weight.

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