Following the September 2005 quarterly rebalancing, the S&P/TSX Capped Energy Index will be defined as the GICS Energy Sector (code 10) excluding the GICS codes for Coal and Consumable Fuels (code 10102050), and Oil and Gas Storage and Transportation (code 10102040). The S&P/TSX Capped Financials Index will be defined as the GICS Financials Sector (code 40) excluding the GICS code for Real Estate (code 4040). All revisions to the GICS definitions will be effective after the close of business on Friday, Sept. 16, 2005.
“Our goal is to focus the S&P/TSX Capped Energy Index more closely on companies with exposure to oil and gas prices, versus the broader GICS Energy Sector, which includes other energy businesses like coal and uranium. For the S&P/TSX Capped Financials Index, we will exclude real estate, which could become a much larger factor in Financials once REITs become eligible for the S&P/TSX Composite Index later this year,” said Steve Rive, Vice President of Standard & Poor’s Canadian Index Services.
“In both cases we are acting in response to market feedback in order to ensure that the S&PTSX indices remain current and in line with customer needs,” added Mr. Rive.
Standard & Poor’s will continue to calculate the uncapped S&P/TSX Energy and S&P/TSX Financials indices, based on the Energy Sector (code 10) and Financials Sector (code 40), respectively.
About the S&P/TSX Capped Sectors
The S&P/TSX Capped Sector Indices provide a liquid and tradeable benchmark for related derivative products of Canadian economic sectors. S&P/TSX Capped Sector Index constituents are selected from a stock pool of S&P/TSX Composite stocks and included using Standard & Poor's guidelines for evaluating company capitalization, liquidity, and fundamentals. The relative weight of any single index constituent is capped at 25%. The S&P/TSX Capped Sector Indices were based on the Global Industry Classification Standard (GICS®) developed by Standard & Poor’s and MSCI.
About Standard & Poor’s
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research, data and valuations. With 6,500 employees located in 22 countries, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit www.standardandpoors.com.