The Tel-Aviv Stock Exchange Is Launching An Index For Family Companies Traded On The Stock Exchange – the TA-Family Index The Index Will Comprise The Shares Of Companies Included In The List Of “Family Companies” To Be Determined By The Raya Strauss Family Business Research Center At The Coller School Of Management, Tel Aviv University

The Board of Directors of the Tel-Aviv Stock Exchange (TASE) has approved (September 13, 2018) the launch of a new equity index – the TA-Family Index. The Index will comprise the shares of companies included in the list of “family companies,” to be determined by the Raya Strauss Family Business Research Center, at the Coller School of Management, Tel Aviv University.

The Raya Strauss Family Business Research Center was established in 2014 and is a unique center operating at Tel Aviv University’s Coller School of Management. The Center is an academic body for research and teaching in the field of family businesses in Israel and abroad.

The decision to launch a dedicated index comprised of shares of family companies was made in light of the recommendations of the WFE (World Federation of Exchanges) to stock exchanges on which shares of family businesses are traded, in view of their significant part in the global economy.

The methodology for classifying companies as family companies was developed by the Raya Strauss Family Business Research Center at Tel Aviv University’s Coller School of Management, in conjunction with TASE, and has been adapted to the specific characteristics of the local market.

A company will be defined as a family company if the following two cumulative conditions are met:

• At least three members of the Board of Directors or officers of the company are family members.
• Interested parties hold at least 40% of the company.

The Index will be updated on an annual basis, when TASE’s equity indices are updated, in August. Family companies that are included in the “Rimon Universe” with a market cap exceeding NIS 400 million will be included in the TA-Family Index.

The key statistics of the Index are:

• Market cap. – approximately NIS 84 billion
• Value of public holdings – approximately NIS 30 billion
• Adjusted indicative yield in the last year – 7.3%
• Adjusted indicative yield in the last 3 years – 49.5%

The effective date for determining the composition of the Index will be the end of the trading day, on October 4, 2018.
The Index will be launched at TASE Trade opening on October 14, 2018.

​Appendix

The proposed composition of the Index, as of August 26, 2018