TASE’s Foreign Investors Index “TA-Foreign Investments” TASE Is Considering The Launch Of A New Innovative Index That Will Comprise Companies With Some Foreign Holdings - The New Index Is Expected To Include 22 Companies With A Total Market Cap Of NIS 190 Billion

TASE is inviting listed companies to voluntarily report, in a designated form, holdings of foreign investors in the shares of the company in order, among others, to better reflect to the public the extent of foreign investment therein.

​Tel Aviv, December 8, 2020 - The Tel-Aviv Stock Exchange (TASE: TASE) is considering the launch, for the first time in Israel, of a new index that will comprise the companies with some foreign holdings listed on TASE. The new index is being contemplated, among others, in light of the results of a comprehensive study* performed by the Israel Securities Authority (ISA) and is planned to be based on companies' reports to the ISA and to TASE.

It also echoes foreign investors' strong interest in TASE and in the local companies that are listed on TASE and reflects their confidence in those companies. 

The index is aligned with the constant efforts of the ISA and TASE to remove investment barriers and attract a wide range of investors to the local market, including international investors. Such measures include the launch of an English version of the MAYA system, global book-building offering, approval of reporting in the English language and advancement of machine-readable tagged reports (IXBRL) by the ISA. Moreover, the Knesset's Finance Committee has recently approved an initiative of the Securities Authority allowing companies to report exclusively in English.

The contemplated TA-Foreign Investments Index is planned to comprise shares of companies included in the Tamar Universe that report their being foreign investment companies. The report will be submitted using a new voluntary form that was developed by the ISA for this purpose, specifying holdings by non-Israeli entities (Form T070) or as part of the report on interested parties' holdings (Form T077). The new form will be available on the MAGNA system commencing on December 8, 2020.

TASE encourages listed companies to adopt the reporting of foreign holdings in the securities of the company. Choosing to report foreign investments will allow companies to be included in the new index, thereby improving the marketability and exposure of their shares.

The parameters of the base index, to the extent launched, will be adjusted to the base index of the TA-125 Fossil Fuel Free Climate Index on the launch date of the TA-Foreign Investments Index. According to a simulation performed by TASE as of the end of October 2020, the index comprises 22 companies with a total market cap of NIS 190 billion, with a yield of 32% (until October 20, 2020).

It is proposed that the index will be updated once a year, as part of the update of the Tamar Universe in August, which is based on the reports of the companies concerning foreign investments, as appearing in TASE's systems as of June 30 of each year. The weight cap of a share in the index will be determined by the Indices Committee and shall not exceed 10%.

*      Click to view the study of the Securities Authority: https://www.isa.gov.il/sites/ISAEng/Departments/Economic-research/Documents/international_institutionals_ENG.pdf

Index Simulation