Standard & Poor’s (S&P) and the Australian Securities Exchange (ASX) today released a consultation paper seeking market feedback on the proposed renaming of two indices. S&P and ASX will seek market feedback on the proposal until October 5, 2007, after which a final announcement will be made.
The proposed changes are:- Renaming the S&P/ASX 200 Property Trusts index to the S&P/ASX 200 A-REIT index.
- Renaming the S&P/ASX 200 Financial-x-Property Trusts index to the S&P/ASX 200 Financial-x-A-REIT index.
The key implications of these changes, subject to the results of the market consultation, is that the changes to the index names will match the changes being made by ASX and the Property Council of Australia to the broader REIT sector.
The changes are proposed for three primary reasons:- ASX and the Property Council of Australia (PCA) are re-branding Australian Listed Property Trusts (LPTs) as Australian Real Estate Investment Trusts (A-REITs), in line with global practice.
- Most major markets refer to this industry sector as REITs, using the first initial of their country followed by the REIT acronym.
- The re-naming of these two sector indices to incorporate the A-REIT name will facilitate better international recognition of the function of these indices.
Standard & Poor’s Australian Head of Index Services Jason Hill said, “Standard & Poor’s is committed to working with ASX and local market participants to ensure that the S&P/ASX indices meet the needs of the Australian equities market. We look forward to receiving comments from the market on the proposed renaming of these indices.”
ASX General Manager Equity Markets, Richard Murphy, said, “The ASX believes that the re-branding of ASX Listed Property Trusts as Australian Real Estate Investment Trusts is an important step in the drive to attract international investment capital to Australia. The proposed renaming of these two sector indices to incorporate the A-REIT name will similarly facilitate better international recognition of the function of these indices.”
Papers detailing the proposed name changes will be circulated to key index stakeholders, and will be available to other interested parties. Copies of the consultation paper are available on www.standardandpoors.com.au (under the Indices tab) and www.asx.com.au/research/indices.
Market feedback will be sought until October 5, 2007, with final arrangements announced to the market in late October. Any change would not take effect until January 2008.