The reason for this rule change is to minimize situations whereby companies are inappropriately either added to or deleted from the index based on market values which may have prevailed several months prior to rebalancing, but which are not the case at the time of rebalancing. By shortening the period over which companies are evaluated, and making this period more recent relative to the rebalancing date, Standard & Poor’s believes that the TSE 300 will better reflect Canadian equity markets, especially in fast-moving and volatile trading environments. The rule change for the TSE 300 will be effective immediately, and the new rule will be used for the upcoming annual rebalancing scheduled for end-February, 2001. All other rules governing the TSE 300 will remain the same. Changes to the index will still be announced in the first week of March, 2001.
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 acquired the index operations of the Toronto Stock Exchange in January 2000.Standard & Poor’s, a division of The McGraw-Hill Companies (NYSE: MHP), provides independent financial information, analytical services, and credit ratings to the world’s financial markets. Among the company’s many products are the S&P Global 1200, the world’s first global, equity, real time index; the S&P 500, the premier U.S. portfolio index; and credit ratings on more than 220,000 securities and funds worldwide. With more than 5,000 employees located in 21 countries, Standard & Poor’s is an integral part of the global financial infrastructure.
