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| Subject: Standard and Poors GICS start date October 1st 2002. | |
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Author: anonymous |
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Date Posted: 22:42:56 11/09/02 Sat http://www2.standardandpoors.com/NASApp/cs/ContentServer?pagename=sp/Page/HomePg&r=7 ------------------------------------------------------------ Standard & Poor's Announces Free Float Commencement ------------------------------------------------------------ Publication date: Oct 01, 2002 00:00 EDT ------------------------------------------------------------ SYDNEY, AUSTRALIA, October 1, 2002 -- Standard & Poor’s, a leading provider of global equity indices, today implemented free float methodology for the S&P/ASX indices. Free float refers to the proportion of a company’s shares on issue that are freely tradeable. The introduction of free float effectively concludes a two year transition that has made the S&P/ASX indices more transparent and understandable for both institutional and retail investors. ------------------------------------------------------------ Standard & Poor's consulted extensively in early 2002 with a wide range of industry participants and index users regarding free float index methodology before announcing its adoption from October 1, 2002. Since Standard & Poor's assumed control of the ASX’s index business in April 2000, numerous changes have brought about an index series that is more in line with Standard & Poor's indices worldwide. ------------------------------------------------------------ “ASX remained probably the only stock exchange in the world that still calculated and managed its own indices. Selling this business to Standard & Poor's in April 2000 enabled an acknowledged market leader and global expert in index calculation to form a global partnership with the ASX and ensure far greater international awareness of, and ultimately participation in, our market”, said Mr Colin Scully, Chief Operating Officer, ASX. ------------------------------------------------------------ The S&P/ASX 200 index and S&P/ASX 300 index were introduced in April 2000, as the institutional benchmark indices for the Australian equity market. They provide fund managers, asset consultants and trustees with a wider choice of benchmark indices more relevant to a wider range of investment styles. The S&P/ASX 200 index has been adopted as the institutional benchmark index for the Australian market, and was adopted by the Sydney Futures Exchange as the benchmark for its share price index contracts. The All Ordinaries, which includes 500 companies representing approximately 99% of the Australian share market capitalization, has ceased to be an institutional index and has been redefined as a market indicator index. ------------------------------------------------------------ “The S&P/ASX indices differ significantly and fundamentally to the old ASX indices, relying on Standard & Poor's index methodology and criteria that have lead to significant and tangible benefits to the Australian financial markets” stated Mr Tim Eisenhauer from Standard & Poor's Index Services. “Our objective has been to make the S&P/ASX indices institutionally investable and more transparent and understandable for all investors. The methodological changes Standard & Poor’s has made has created a platform that facilitates investment in a number of new index-linked products”. ------------------------------------------------------------ In addition to the introduction of free float, Standard & Poor's has changed the way each company in the Australian market is classified into an industry sector by introducing a new industry classification standard. Standard & Poor's has mapped all stocks in the Australian market to the Global Industry Classification Standard (GICS), which was developed by Standard & Poor's and MSCI to facilitate sector analysis and investing on a global basis. ------------------------------------------------------------ GICS has replaced the old ASX classification system, which divided the market into 24 industry sectors. GICS sector indices have been introduced and are now calculated over the S&P/ASX 200 and S&P/ASX 300 indices. Standard & Poor's has tailored the GICS system to the Australian market by including the Property Trusts sector as a headline GICS sector index to facilitate the introduction of derivative and index-linked products. This year, the ASX recently introduced the first Property Trusts futures contract and fund manager State Street Global Advisors introduced the streetTRACKS S&P/ASX 200 Listed Property Exchange Traded Fund (ETF). ------------------------------------------------------------ Mr Bernard Reilly, Managing Director of State Street Global Advisors, Australia said: “The creation of the Property Trusts sector index by Standard & Poor's has enabled SSgA to offer an exchange traded fund over the S&P/ASX 200 Property Trusts index. This new property ETF joins the other streetTRACKS ETFs over the S&P/ASX 50 and S&P/ASX 200, as the first ETFs available to the Australian market”. ------------------------------------------------------------ Information about the S&P/ASX index methodology is available at www.standardandpoors.com.au and www.spglobal.com. ------------------------------------------------------------ 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 18 countries, Standard & Poor’s is an integral part of the world’s financial architecture. ------------------------------------------------------------ [ Next Thread | Previous Thread | Next Message | Previous Message ] |