S&P Dow Jones Indices and Toronto Stock Exchange Launch Two New Factor Based Indices
S&P/TSX Composite Shareholder Yield Index Licensed to Horizons ETFs
Toronto, Ontario, September 25, 2014: S&P Dow Jones Indices (S&P DJI), one of the world's largest providers of financial market indices, and Toronto Stock Exchange (TSX) today announced the launch of the S&P/TSX Composite Shareholder Yield Index and the S&P/TSX Composite Buyback Index.
The S&P/TSX Composite Shareholder Yield Index is designed to measure the performance of the top 50 stocks with the highest shareholder yield in the S&P/TSX Composite. Shareholder yield ratio is derived from the payment of dividends to common shareholders, the monetary amount companies spend in their common stock repurchase programs, and debt paydown (change in total debt) over the last four calendar quarters. Horizons ETFs Management (Canada) Inc. (Horizons ETFs) has licensed the S&P/TSX Composite Shareholder Yield Index as the basis for a potential new exchange traded fund for the Canadian Market.
The S&P/TSX Composite Buyback Index is designed to measure the performance of the 50 constituent companies in the S&P/TSX Composite with the highest buyback ratio in the last 12 months. The buyback ratio is defined as the amount of cash paid for common share buybacks in the last four calendar quarters divided by the total market capitalization of common shares at the beginning of the buyback period.
"Buybacks, like dividends, have become an increasingly significant part of corporate payouts, in Canada and in most developed markets," says Vinit Srivastava, Senior Director of Strategy Indices at S&P Dow Jones Indices. "With the launch of these indices today, S&P Dow Jones Indices is meeting the growing demand of Canadian investors for factor-based, non-market cap weighted benchmarks."
Howard Atkinson, President of Horizons ETFs, said: "We are very pleased to be expanding our relationship with S&P Dow Jones Indices and the TSX and are excited about the prospects for this new and innovative index."
For additional information on S&P Dow Jones Indices please visit: www.spdji.com
S&P® is registered trademark of Standard & Poor's Financial Services LLC ("S&P") and TSX® is a registered trademark of TSX Inc. These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, S&P and their respective affiliates and licensors (including TSX Inc.)(collectively "S&P Dow Jones Indices") do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties.
About S&P Dow Jones Indices
S&P Dow Jones Indices LLC, a part of McGraw Hill Financial, is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average™, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of investors. More assets are invested in products based upon our indices than any other provider in the world. With over 1,000,000 indices covering a wide range of asset classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com.
About TMX Group (TSX-X)
TMX Group's key subsidiaries operate cash and derivative markets and clearinghouses for multiple asset classes including equities, fixed income and energy. Toronto Stock Exchange, TSX Venture Exchange, TMX Select, Alpha Group, The Canadian Depository for Securities, Montreal Exchange, Canadian Derivatives Clearing Corporation, NGX, BOX Options Exchange, Shorcan, Shorcan Energy Brokers, Equicom and other TMX Group companies provide listing markets, trading markets, clearing facilities, depository services, data products and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across Canada (Montreal, Calgary and Vancouver), in key U.S. markets (New York, Houston, Boston and Chicago) as well as in London, Beijing and Sydney. For more information about TMX Group, visit our website at www.tmx.com. Follow TMX Group on Twitter at http://twitter.com/tmxgroup.
For more information:
| S&P Dow Jones Indices Soogyung Cho Associate Director, U.S. Communications 55 Water Street 27th Floor New York, NY, 10041 (+1) 212 438 2297 soogyung.cho@spdji.com www.spdji.com |
TMX Group Catherine Kee Manager, Corporate Communications 416-814-8834 catherine.kee@tmx.com www.tmx.com |