Market consultation

FTSE TMX Canada client consultation
Fixed income index inclusion criteria
Minimum issue size

ftserussell.com

February 2018

FTSE TMX Canada client consultation
Fixed income index inclusion
Minimum issue size thresholds
Introduction
FTSE Russell is committed to protecting and enhancing the strengths of the FTSE TMX Canada Indexfranchise. Significant progress has been made to review and streamline the existing index methodologies,
incorporate the FTSE TMX Canada Index Series in the Governance process, and issue a Statement ofCompliance with respect to the IOSCO Principles for Financial Benchmarks.
We recognize that high client engagement, market education and consensus building play an important rolein this process. As part of our commitment to ensuring that the FTSE TMX Canada Bond Index Series
remain representative and continue to address the needs of the users, we have been reviewing themethodologies with a view to ensuring they continue to represent best practice.
As part of our efforts to develop the best possible index solutions, we would like to review the Minimum
Issue Size thresholds that form part of the current index methodology.

Responding to the consultation
The proposals set out in this consultation document are included in order to gather feedback and may or
may not result in changes to FTSE Russell Index rules.
Please submit your response to the questions included in this consultation online athttps://www.surveymonkey.co.uk/r/5SQ6C9F
The consultation will close on March 31, 2018. All responses will be treated as confidential. FTSE Russell
may publish a summary of the consultation results, but no individual responses will be published and no
respondents will be named.
If you have any questions about this survey, or if you encounter any technical issues, please contact
rpawson@ftserussell.com.

FTSE Russell | FTSE TMX Canada client consultation – February 2018

2

BackgroundA bond’s amount outstanding represents an observable and transparent proxy for liquidity, with larger bonds
generally being more widely held than smaller issues. As such, the minimum amount outstanding is a key
design element for fixed income indexes. To ensure that an index continues to capture issuance at a levelcommensurate with the critical mass of investment and issuance of a market, the amount outstanding
thresholds for index consideration should be periodically reviewed.
As part of our commitment to ensure that the FTSE TMX Canada Bond Indexes remain representative of theCanadian fixed income market, and continue to address users’ needs, we would like to review the relevanceand application of the current thresholds.
The table below summarizes the current issue size rules for the flagship FTSE TMX Canada Bond Index
Families

Index family

Current rules

Universe Bond Index,



Corporates: minimum issue size of CAD 100m

Maple Bond Index,

Government (including provincial and municipal bonds):
minimum issue size CAD 50m



Amount outstanding values are adjusted to reflect buybacks,
amounts held by the Bank of Canada, and stripping andreconstitution of securities

High Yield Bond Index

Securities must have a minimum issue size of CAD 100m

RRB IndexSecurities must have a minimum issue size of CAD 100m

All Indices

Amount outstanding includes the original issue amount plus reopenings (adjusted for Stripping and Bank of Canada holdings)

Stripping / Reconstitution adjustment is done on a monthly basis(first week of the month)The minimum issue size rule is applied at issuance only (i.e. if abond falls below the outstanding threshold due to corporate
action/reconstitution it will remain in the index)Securities must be held by at least 10 institutional buyers

Universe & Maple Bond Index

Application of Stripping / Reconstitution to the Holdings of Indexes
The indexes seek to be representative of the market available to investors. As such, the methodology
adjusts the bond holdings to remove amounts not available to investors. This includes a reduction for the
Bank of Canada (BoC) holdings from Treasury issuance, and accounts for buyback, stripping andreconstitution activity in the market. The BoC holding adjustment is applied at issue / buyback in accordancewith the BoC posted report. The stripping / reconstitution adjustment is applied on a monthly basis (once permonth, in the first week of the month), in accordance with the activity reported by the Canadian Depository
for Securities (CDS). An impact simulation and summary of activity is communicated to all index users prior
to implementation.
Please see the appendix for additional details.
The feedback received from this consultation will assist FTSE Russell to make any final decisions on the
proposed approach. We value your input and participation.

FTSE Russell | FTSE TMX Canada client consultation – February 20183

Consultation questions
FTSE TMX Canada Universe Bond Index – bond entry considerationthreshold amountThe current Universe Bond Index methodology specifies that bonds must have a minimum issue size of CAD
100mfor corporate bonds and CAD 50mfor government bonds (including federal, provincial and municipal) inorder to be considered (provided that all other eligibility criteria are met).
1. Do you support the application of a minimum amount outstanding threshold that is based on the
sector within the Universe Index?
Yes, the current approach to tailor thresholds to government and corporate sectors is appropriate
Yes, with additional specificity within government for Federal, Municipal and Provincial
No, the same threshold should apply to all securities in a given headline index
Other (please state your preference)
Please enter your comments here:

2. Do you believe the current Corporate Bond minimum consideration amount of CAD 100m is
Too low, and should be increased to CAD 150m
Too low, and should be increased to CAD 200m
Too low, and should be increased to CAD 300m
Representative and should remain unchanged
Other (please state your preferred value in the comments box)
Please enter your comments here:

FTSE Russell | FTSE TMX Canada client consultation – February 20184

3. Do you believe the current Government Bond minimum consideration amount of CAD 50m is
Too low, and should be increased to CAD 100m for all Government Bonds (Federal, Municipal andProvincial)
Too low, and should be increased to CAD 150m
Should vary for one or more sub-categorizations of Government bonds (please provide additionalcomments in next three questions question)
Representative and should remain unchanged for all Government Bonds
Other (please state your preferred value in the comments box)
Please enter your comments here:

4. Do you believe the current Federal Bond minimum consideration amount of CAD 50m is
Too low, and should be increased to CAD 100m
Too low, and should be increased to CAD 150m
Too low, and should be increased to CAD 200m
Too low, and should be increased to CAD 300m
Representative and should remain unchanged
Other (please state your preferred value in the comments box)
Please enter your comments here:

5. Do you believe the current Provincial Bond minimum consideration amount of CAD 50m is
Too low, and should be increased to CAD 100m
Too low, and should be increased to CAD 150m
Too low, and should be increased to CAD 200m
Too low, and should be increased to CAD 300m
Representative and should remain unchanged
Other (please state your preferred value in the comments box)
Please enter your comments here:

FTSE Russell | FTSE TMX Canada client consultation – February 20185

6. Do you believe the current Municipal Bond minimum consideration amount of CAD 50m is
Too low, and should be increased to CAD 100m
Too low, and should be increased to CAD 150m
Too low, and should be increased to CAD 200m
Too low, and should be increased to CAD 300m
Representative and should remain unchanged
Other (please state your preferred value in the comments box)
Please enter your comments here:

FTSE TMX Canada Maple Bond Index – bond entry consideration threshold amountThe current Maple Bond Index methodology specifies that bonds must have a minimum issue size of CAD
100m for corporate bonds and CAD 50m for government bonds in order to be considered (provided that allother eligibility criteria are met).
7. Should the same amount outstanding threshold be applied to all Maple bonds?
Yes, issuer sector is not as relevant to issuance patterns for Maples
No, there is a need to maintain specificity
Please enter your comments here:

8. Do you believe the current Corporate Bond minimum consideration amount of CAD 100m is
Too low, and should be increased to CAD 150m
Too low, and should be increased to CAD 200m
Too low, and should be increased to CAD 300m
Representative and should remain unchanged
Other (please state your preferred value in the comments box)
Please enter your comments here:

FTSE Russell | FTSE TMX Canada client consultation – February 20186

9. Do you believe the current Government Bond minimum consideration amount of CAD 50m is
Too low, and should be increased to CAD 100m
Too low, and should be increased to CAD 150m
Too low, and should be increased to CAD 200m
Too low, and should be increased to CAD 300m
Representative and should remain unchanged
Other (please state your preferred value in the comments box)
Please enter your comments here:

FTSE TMX Canada High Yield Bond Index – bond entry consideration threshold
amount
The current High Yield Bond Index methodology specifies that bonds must have a minimum issue size of
CAD 100m in order to be considered (provided that all other eligibility criteria are met).
10. Do you believe the current minimum consideration amount of CAD 100m is
Too low, and should be increased to CAD 150m
Too low, and should be increased to CAD 200m
Too low, and should be increased to CAD 300m
Representative and should remain unchanged
Other (please state your preferred value in the comments box)
Please enter your comments here:

FTSE Russell | FTSE TMX Canada client consultation – February 20187

Application of minimum size thresholds
The current bond index methodology stipulates a minimum issue size consideration for the inclusion of
securities, but does not stipulate that bonds must maintain a minimum par amount outstanding once they
enter the index. As such, bonds remain eligible through any subsequent reduction in the amountoutstanding, whether this is due, for example, to incremental stripping or a corporate action (such as partial
redemption).
11. Do you believe the index should remove securities that fall below a par amount outstanding
threshold, and that the minimum size should be applied throughout the life of a bond?
Yes
No
Please enter your comments here:

12. If the index were to apply a minimum size threshold throughout the life of a bond, should thisapply to securities irrespective of the reason for the reduction in the amount outstanding (i.e.
incremental stripping and other corporate action)?
Yes, all securities with amount outstanding falling below a minimum threshold should be removed
from the index (including removing securities that are stripped)
No, only securities with amount outstanding falling below a minimum threshold as a result ofcorporate action should be removed from the index (stripped securities remain eligible for the index )No, all securities should remain eligible through maturity to reduce unnecessary turnover
Please enter your comments here:

13. If the index were to apply a minimum size threshold throughout the life of a bond, should existing
constituent securities that have fallen below a minimum exit threshold be removed from theindex?
Yes, they should be removed
No, they should be grandfathered and remain constituents
Other (please specify) _____________________

14. Please provide any additional feedback you may have.

FTSE Russell | FTSE TMX Canada client consultation – February 20188

Appendix
Amount outstanding distribution
As of December 29, 2017, the security distribution by amount outstanding thresholds across benchmark indexes considered in this consultation were as follows.

Figure 1. FTSE TMX Canada Universe Bond Index
Corporate
Dec 29, 2017

Government

Count% Corporate% Universe

Mkt Val (000s)% Corporate% Universe

Count% Gov't% Universe

Mkt Val (000s)% Gov't% Universe

<50MM

7

0.74

0.49

239,877

0.06

0.02

13

2.65

0.90

415,192

0.04

0.03

50-100MM

16

1.68

1.11

1,107,211

0.27

0.08

35

7.14

2.43

2,642,103

0.25

0.18

100-150MM

96

10.11

6.67

11,113,519

2.73

0.76

46

9.39

3.19

5,499,661

0.52

0.37

150-200MM

103

10.84

7.15

16,580,476

4.08

1.13

23

4.69

1.60

3,842,780

0.36

0.26

200-300MM

214

22.53

14.86

48,843,721

12.01

3.32

42

8.57

2.92

9,555,584

0.90

0.65

300-500MM

242

25.47

16.81

87,869,736

21.61

5.98

67

13.67

4.65

24,358,372

2.29

1.66

500MM+

272

28.63

18.89

240,812,083

59.23

16.39

264

53.88

18.33

1,016,812,440

95.64

69.19

Grand Total

950

100

65.97

406,566,623

100

27.66

490

100.0034.03

1,063,126,132

100

72.34

FTSE Russell | FTSE TMX Canada client consultation – February 20189

Figure 2. FTSE TMX Canada Government Bond Index
FederalProvincial

Municipal

Dec 29, 2017 Count % Federal % Universe Mkt Val (000s) % Federal % Universe Count % Provincial % Universe Mkt Val (000s) % Provincial % Universe

Count % Municipal % Universe Mkt Val (000s) % Municipal % Universe

<50MM

1

1.04

0.07

46,602

0.01

0.00

11

3.63

0.76

325,711

0.07

0.02

1

1.10

0.07

42,8790.16

0.00

50-100MM

3

3.13

0.21

255,564

0.05

0.02

21

6.93

1.46

1,581,189

0.33

0.11

11

12.09

0.76

805,351

2.94

0.05

100-150MM

2

2.08

0.14

231,949

0.04

0.02

29

9.57

2.01

3,523,368

0.73

0.24

15

16.48

1.04

1,744,345

6.37

0.12

150-200MM

1

1.04

0.07

195,000

0.04

0.01

18

5.94

1.25

2,993,780

0.62

0.20

4

4.40

0.28

654,000

2.39

0.04

200-300MM

3

3.13

0.21

690,348

0.12

0.05

28

9.24

1.94

6,322,660

1.32

0.43

11

12.09

0.76

2,542,576

9.29

0.17

300-500MM

3

3.13

0.21

1,086,493

0.20

0.07

34

11.22

2.36

12,247,879

2.55

0.83

30

32.97

2.08

11,024,000

40.27

0.75

500MM+

83

86.46

5.76

553,545,820

99.55

37.66

162

53.47

11.25

452,702,830

94.37

30.80

19

20.88

1.32

10,563,789

38.59

0.72

Grand Total

96

100

6.67

556,051,775

100

37.83

303

100

21.04

479,697,417

100

32.64

91

100

6.32

27,376,939

100

1.86

Figure 3. FTSE TMX Canada Maple Bond Index
Corporate
Dec 29, 2017

Government

Count% Corporate% MapleMkt Val (000s)% Corporate% MapleCount% Gov't% MapleMkt Val (000s)% Gov't% Maple

<50MM

0

0.00

0.00

-

-

-

0

0.00

0.00

-

0.00

0.00

50-100MM

1

2.08

1.43

80,692

0.25

0.18

0

0.00

0.00

-

0.00

0.00

100-150MM

0

0.00

0.00

-

-

-

0

0.00

0.00

-

0.00

0.00

150-200MM

0

0.00

0.00

-

-

-

0

0.00

0.00

-

0.00

0.00

200-300MM

3

6.25

4.29

725,000

2.21

1.65

7

31.82

10.00

1,650,000

14.96

3.76

300-500MM

11

22.92

15.71

4,250,000

12.94

9.68

6

27.27

8.57

1,800,000

16.32

4.10

500MM+

33

68.75

47.14

27,800,000

84.61

63.35

9

40.91

12.86

7,577,000

68.71

17.27

Grand Total

48

100

68.57

32,855,692

100

74.87

22

100

31.43

11,027,000

100

25.13

Figure 4. FTSE TMX Canada High Yield Bond Index
High Yield
Dec 29, 2017

Count

% High Yield

Mkt Val (000s)% High Yield<50 MM2

4.17

18,0280.14

50 - 100 MM

0

0.00

00

-

100 - 200 MM

8

16.67

1,200,000

9.47

200 - 300 MM

17

35.42

3,768,300

29.73

300 - 500 MM

17

35.42

5,590,000

44.10

500 MM+4

8.33

2,100,000

16.57

Grand Total

48

100

12,676,328

100

FTSE Russell | FTSE TMX Canada client consultation – February 201810

Issue sizes have increased over time. Looking at the composition of the indexes considered in this consultation byamount outstanding thresholds between a ten year period.

Figure 5. FTSE TMX Canada Universe Bond Index
Universe Index Composition Amount Outstanding (Corporate)

Number of Bonds

300
250
200
150
100
50
0
<50 MM

50 - 100 MM

100 - 150 MM

150 - 200 MM

200 - 300 MM

300 - 500 MM

500 MM+

Amount Outstanding Thresholds
2006

2017

Universe Index Composition Amount Outstanding (Government)

Number of Bonds

300
250
200
150
100
50
0
<50 MM

50 - 100 MM

100 - 150 MM

150 - 200 MM

200 - 300 MM

300 - 500 MM

500 MM+

Amount Outstanding Thresholds
2006

2017

Number of Bonds

Universe Index Composition (Government - Federal)
90
80
70
60
50
40
30
20
10
0
<50 MM

50 - 100 MM

100 - 150 MM

150 - 200 MM

200 - 300 MM

300 - 500 MM

500 MM+

Amount Outstanding Thresholds
2006

2017

FTSE Russell | FTSE TMX Canada client consultation – February 201811

Universe Index Composition (Government - Provincial)
180

Number of Bonds

160
140
120
100
80
60
40
20
0
<50 MM

50 - 100 MM

100 - 150 MM

150 - 200 MM

200 - 300 MM

300 - 500 MM

500 MM+

Amount Outstanding Thresholds
2006

2017

Universe Index Composition (Government - Municipal)
35

Number of Bonds

30
25
20
15
10
5
0
<50 MM

50 - 100 MM

100 - 150 MM

150 - 200 MM

200 - 300 MM

300 - 500 MM

500 MM+

Amount Outstanding Thresholds
2006

2017

FTSE Russell | FTSE TMX Canada client consultation – February 201812

Figure 6. FTSE TMX Canada Maple Bond Index
Maple Index Composition (Corporate)
35

Number of Bonds

30
25
20
15
10
5
0
<50 MM

50 - 100 MM

100 - 150 MM

150 - 200 MM

200 - 300 MM

300 - 500 MM

500 MM+

300 - 500 MM

500 MM+

300 - 500 MM

500 MM+

Amount Outstanding Thresholds
2006

2017

Maple Index Composition (Government)
12

Number of Bonds

10
8
6
4
2
0
<50 MM

50 - 100 MM

100 - 150 MM

150 - 200 MM

200 - 300 MM

Amount Outstanding Thresholds
2006

2017

Figure 7. FTSE TMX Canada High Yield Bond Index
HighYield Index Composition
18
Number of Bonds

16
14
12
10
8
6
4
2
0
<50 MM

50 - 100 MM

100 - 150 MM

150 - 200 MM

200 - 300 MM

Amount Outstanding Thresholds
2006

2017

FTSE Russell | FTSE TMX Canada client consultation – February 201813

Transaction data distribution
Amount outstanding is commonly viewed as an observable measure of liquidity. Looking at a distribution of
average number of observed trades per bond by amount outstanding thresholds across benchmark indexes
considered in this consultation, for the year ended December 29, 2017 was as follows.

Figure 8. FTSE TMX Canada Universe Bond Index

Amount Outstanding Thresholds

Average Number of Trades Per Amount O/S (Corporate)
500 MM+
300 - 500 MM
200 - 300 MM
150 - 200 MM
100 - 150 MM
50 - 100 MM<50 MM
0

20

40

60

80

100

120

140

160

180

8000

9000

Average Number of Trades in 2017
Corporate

Amount Outstanding Thresholds

Average Number of Trades Per Amount O/S (Government- Federal)
500 MM+
50 - 100 MM
300 - 500 MM
200 - 300 MM
150 - 200 MM
100 - 150 MM<50 MM
0

1000

2000

3000

4000

5000

6000

7000

Average Number of Trades in 2017

Amount Outstanding Thresholds

Federal

Average Number of Trades Per Amount O/S (Government)
500 MM+
300 - 500 MM
200 - 300 MM
150 - 200 MM
100 - 150 MM
50 - 100 MM<50 MM
0

200

400

600

800

1000

1200

Average Number of Trades in 2017
Government - Municipal

Government - Provincial

FTSE Russell | FTSE TMX Canada client consultation – February 201814

Figure 9. FTSE TMX Canada Maple Bond Index

Amount Outstanding Thresholds

Average Number of Trades per Amount O/S Thresholds (Government &Corporate)
500 MM+
300 - 500 MM
200 - 300 MM
150 - 200 MM
100 - 150 MM
50 - 100 MM<50 MM
0

20

40

60

80

100

120

140

160

180

70

80

90

Average Number of Trades in 2017
Government

Corporate

Figure 10. FTSE TMX Canada High Yield Bond Index

Current Amount Outstanding intervals

Average Number of Trades per Amount O/S Thresholds
500 MM+
300 - 500 MM
200 - 300 MM
150 - 200 MM
100 - 150 MM
50 - 100 MM<50 MM
0

10

20

30

40

50

60

Average number of Trades in 2017

FTSE Russell | FTSE TMX Canada client consultation – February 201815

Global context: Issue Size rules for global benchmarks
Within multi-currency global benchmarks, minimum amount outstanding thresholds are set for each local market
based on benchmark issuance sizes and set to accommodate country allocations in global portfolios, rather thanbased on the appropriate size to facilitate local buying for domestic funds. As such, the threshold for the Canadiandollar component of a global benchmark is much higher for widely used global benchmarks than in the FTSE TMXCanada benchmarks.
Some examples of differences are:


The FTSE World Government Bond Index (WGBI), comprised of federal government bonds only, sets theminimum at CAD 2.5bn for Canadian issues.

The size threshold in global benchmarks is generally set using the current amount outstanding, rather
than the amount outstanding at issuance .

Global benchmarks do not have a standard approach for handling government purchases and STRIPS – theFTSE WGBI Index adjusts security weights for government holdings only, while other index providers do not
adjust for government holdings at all in flagship government benchmarks.

Responding to the consultation
The proposals set out in this consultation document are included in order to gather feedback and may or
may not result in changes to FTSE Russell Index rules.
Please submit your response to the questions included in this consultation online athttps://www.surveymonkey.co.uk/r/5SQ6C9F
The consultation will close on March 31, 2018. All responses will be treated as confidential. FTSE Russell
may publish a summary of the consultation results, but no individual responses will be published and no
respondents will be named.
If you have any questions about this survey, or if you encounter any technical issues, please contact
rpawson@ftserussell.com.

FTSE Russell | FTSE TMX Canada client consultation – February 201816

For more information about our indexes, please visit ftserussell.com.
© 2018 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE
International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX
Global Debt Capital Markets Limited (together, “FTSE TMX”), (4) MTSNext Limited (“MTSNext”) (5) Mergent, Inc. (“Mergent”), (6) FTSE
Fixed Income LLC (“FTSE FI”) and (7) The Yield Book inc (“YB”). All rights reserved.
FTSE Russell® is a trading name of FTSE, Russell, YB, FTSE FI, FTSE TMX, MTSNext and Mergent. “The Yield Book ®”, “FTSE®”,“Russell®”, “FTSE Russell®”, “MTS®”, “FTSE TMX®”, “Mergent®” and all other trademarks and service marks used herein (whether
registered or unregistered) are trademarks and/or service marks owned or licensed by the applicable member of the LSEG Companiesor their respective licensors and are owned, or used under licence, by FTSE, Russell, YB, FTSE FI, MTSNext, FTSE TMX, Mergent.
All information is provided for information purposes only. All information and data contained in this publication is obtained by the LSEGroup, from sources believed by it to be accurate and reliable. Because of the possibility of human and mechanical error as well asother factors, however, such information and data is provided "as is" without warranty of any kind. No member of the LSE Group nor
their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever,expressly or impliedly, either as to the accuracy, timeliness, completeness, merchantability of any information or of results to beobtained from the use of the FTSE Russell products or the fitness or suitability of the products for any particular purpose to which theymight be put. Any representation of historical data accessible through FTSE Russell is provided for information purposes only and is nota reliable indicator of future performance.
No responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees,
partners or licensors for (a) any loss or damage in whole or in part caused by, resulting from, or relating to any error (negligent orotherwise) or other circumstance involved in procuring, collecting, compiling, interpreting, analysing, editing, transcribing, transmitting,communicating or delivering any such information or data or from use of this material or links to this material or (b) any direct, indirect,
special, consequential or incidental damages whatsoever, even if any member of the LSE Group is advised in advance of the possibilityof such damages, resulting from the use of, or inability to use, such information.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice andnothing contained in this material or accessible through FTSE Russell, including statistical data and industry reports, should be taken as
constituting financial or investment advice or a financial promotion.
This publication may contain forward-looking assessments. These are based upon a number of assumptions concerning future
conditions that ultimately may prove to be inaccurate. Such forward-looking assessments are subject to risks and uncertainties and may
be affected by various factors that may cause actual results to differ materially. No member of the LSE Group nor their licensors assume
any duty to and do not undertake to update forward-looking assessments.
No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use anddistribution of the LSE Group data requires a licence from FTSE, Russell, YB, FTSE FI, FTSE TMX, MTSNext, Mergent and/or theirrespective licensors.

FTSE Russell

17About FTSE Russell
FTSE Russell is a leading global index provider creating and managing awide range of indexes, data and analytic solutions to meet client needs
across asset classes, style and strategies. Covering 98% of the investable
market, FTSE Russell indexes offer a true picture of global markets,
combined with the specialist knowledge gained from developing local
benchmarks around the world.
FTSE Russell index expertise and products are used extensively byinstitutional and retail investors globally. For over 30 years, leading asset
owners, asset managers, ETF providers and investment banks have chosen
FTSE Russell indexes to benchmark their investment performance andcreate investment funds, ETFs, structured products and index-based
derivatives. FTSE Russell indexes also provide clients with tools for asset
allocation, investment strategy analysis and risk management.
A core set of universal principles guides FTSE Russell index design andmanagement: a transparent rules-based methodology is informed byindependent committees of leading market participants. FTSE Russell isfocused on index innovation and customer partnership applying the highest
industry standards and embracing the IOSCO Principles. FTSE Russell iswholly owned by London Stock Exchange Group.
For more information, visit ftserussell.com.

To learn more, visit ftserussell.com; email info@ftserussell.com; or call your regional
Client Service Team office:EMEA+44 (0) 20 7866 1810

FTSE Russell

North America+1 877 503 6437

Asia-PacificHong Kong +852 2164 3333
Tokyo +81 3 3581 2764
Sydney +61 (0) 2 8823 3521