On Sept. 27, 2005, the S&P/TSX Canadian Index Committee invited comments from the S&P/TSX Canadian Index Advisory Panel and other members of the financial community on whether the announced schedule for including income trusts in the S&P/TSX Composite Index should be revised in light of possible changes to regulations governing income trusts.
Over 30 responses from a wide range of financial market participants were received; after reviewing the comments and considering related financial market issues, the Committee has decided not to change the current schedule for the inclusion of income trusts.
The schedule, as announced in June 2005, is:
- Income Trusts will be added to the S&P/TSX Composite Index in two steps, after the close on Dec. 16, 2005 and March 17, 2006.
- A new equity-only composite index (S&P/TSX Equity Index) will be calculated and published real time beginning in December 2005.
- Income Trusts will not be added to the S&P/TSX 60 Index
About the S&P/TSX Composite Index
The S&P/TSX Composite is the premier indicator of market activity for Canadian equity markets going back to its original incarnation in 1977. With approximately 95% coverage of the Canadian equities market, it is the primary gauge for Canadian-based, TSX-listed companies. It addresses the needs of investment managers who require a portfolio benchmark characterized by sufficient size and liquidity. The size of the S&P/TSX Composite and its broad economic sector coverage has made the S&P/TSX Composite Index the primary benchmark for Canadian pension funds and mutual market funds.
About Standard & Poor’s
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