The Indxis Select Canadian Preferred Share IndexTM is comprised of companies incorporated in Canada and trade on the Toronto Stock Exchange. The issues must have a median daily cash volume (MDCV) of CA$50,000 in the November and December prior to trading on January 15th. In addition, each issue must trade for at least 90% of the available trade days in November and December.
The constituents are ranked by MDCV in descending order by issuer. The three issues with the highest MDCV will be selected from each issuer.
The issues are then ranked in descending order by their issue level market capitalization. The top 50 constituents by market capitalization are chosen. The Index is then weighted by market capitalization.
No issuer will have a weight in excess of 10% at reconstitution.
If the weight of an issuer exceeds 10%, the excess weight will be proportionately allocated to the remaining issuers.
The cumulative weight for the issuers at or above 5% shall not exceed 50% of the total weight of the Index.
If the weight of an issuer is 5% or more and the cumulative weight of these issuers exceeds 50%, the excess weight of these issuers will be proportionately allocated to the remaining issuers.
The Index is reviewed monthly to confirm that the constituents are liquid and tradable by requiring a continuing minimum MDCV of $35,000 and trade at least 50% of the available trade days.
In addition, constituents must maintain their investment grade rating of P-3 or higher from Standard and Poor's and actively pay regular cash dividends.
The Index is rebalanced for corporate actions. If a constituent is removed from the Index, then that issuer’s next highest issue by median value will be selected. If that issuer does not have a replacement issue, then the issue with the next highest market capitalization rank will be selected and assume the weight of the departing issue. This will occur on the effective date of the corporate action.
The Index is reconstituted annually and begins trading on January 15th
