Calculated in a manner similar to the TSE 300 Composite Index, the new index will be market capitalization weighted and, at its inception, will include approximately 500 companies. A quarterly revision process will be used to remove companies that comprise less than 0.05% of the weight of the index, and add companies whose weight, when included, will be greater than 0.05% of the index. In addition, companies removed throughout the quarter through normal course corporate events will not be replaced until the next quarterly review, if at all. The list of stock names, which will comprise the new index, is attached to this release along with the criteria for inclusion and the methodology.
"Standard & Poor's is an acknowledged world leader in equity indexing and we are pleased they have created this index," said Richard Nesbitt, President TSE CDNX Markets Inc. "The TSE has had an excellent relationship with S&P, dating back more than 3 years. S&P manages all TSE indices and the expansion to the venture market was a natural extension for us."
Glenn Doody, Director of Canadian Index Operations for Standard & Poor's, said, "We are pleased to be involved in the creation of this new product. Building on our well-known strengths in index development around the world, the new S&P/CDNX Index offers Standard & Poor's the opportunity to replicate the success of our other Canadian indices and thereby assist investors in this market."
Index Products and Standard & Poor's
The S&P 500 Index is widely regarded as the standard for measuring large-cap U.S. stock market performance. Its Canadian counterpart, the S&P/TSE 60 Index, consists of the actively traded, liquid shares of 60 large-cap companies representing all 10 economic sectors within the S&P/MSCI Global Industry Classification Standard (GICS). Constituent companies are chosen from a universe of publicly traded Canadian companies, covering approximately 70% of the free float-adjusted market capitalization of the broader Canadian market. It also represents the Canadian portion of the S&P Global 1200, which is made up of six regional indices, including the S&P 500 in the United States and the S&P Europe 350. S&P indices have traded products on four continents.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company.
Standard & Poor's, a division of The McGraw-Hill Companies (MHP: NYSE), is a leading global provider of financial information and investment analysis. Included among its product lines are corporate financial information, corporate valuations and value analysis, analytical services, and credit ratings on more than 220,000 securities and funds worldwide. With more than 5,000 employees located in 18 countries, Standard & Poor's is an integral part of the world's financial architecture. Additional information is available at www.spglobal.com.
The Toronto Stock Exchange Inc.
The TSE group of companies includes The Toronto Stock Exchange Inc., Canadian Venture Exchange Inc., and TSE CDNX Markets Inc., which collectively manage all aspects of Canada's senior and junior capital markets. The TSE is headquartered in Toronto and maintains offices in Montreal, Winnipeg, Calgary and Vancouver.
CDNX
The Canadian Venture Exchange (CDNX) is Canada's public venture capital market-place providing emerging companies with access to capital while offering investors a well-regulated market in which to make venture investments. CDNX listed companies are active in mining, oil and gas, manufacturing, technology, financial services and other sectors. The exchange has offices in Calgary, Vancouver, Winnipeg and Toronto.
