- There will be no limit to the number of preferred share issues from any given issuer. Previously, the number of issues per issuer was limited to a maximum of three.
- There will be a maximum relative weight of 10% set per issuer. All eligible lines for an issuer will be included in the index and capped on a pro-rata basis to a maximum of 10% of the total index market capitalization.
- Preferred shares that have a mandatory conversion or a scheduled maturity or redemption within 12 months of the review period will not be added to the index. Existing index constituents which have a redemption or conversion will be removed on the redemption or conversion date.
- A buffer rule for existing index constituents will be applied for the dollar value traded liquidity requirement. Existing constituents must have a minimum average dollar value traded in the 3 months prior to the review date of C$100,000.
- The liquidity requirement to get included in the index will increase from C$100,000 to C$200,000.
- Effective January 2011 the rebalance scheduled will change from semi-annually to quarterly. Rebalancing will occur after the close on the third Friday of January, April, July and October.
In order to lessen the impact of these changes, the new methodology will be phased in beginning with the July 2010 rebalance. The index will rebalance 25% each month from July to October, effective after the close on the third Friday, where S&P will apply a weight factor to each issue in order to gradually bring each in to the index.
Company additions to and deletions from an S&P index do not in any way reflect an opinion on the investment merits of the company.
