(September 15 – 12:35 ET) – The Dow Jones Canada 40 index participation fund has received conditional listing approval from the Toronto Stock Exchange. It is slated to begin trading on September 27. It’s expected that the first units will be issued on September 25.

The DJ Canada 40 index is based on the 40 largest, most liquid stocks trading on the TSE. As of December 31, it was weighted 30% in technology, 17% in financials, 13.1% in telecoms, 12.3% in consumer cyclicals with the remainder scattered across other sectors.

State Street Bank & Trust is managing the fund. It will compete directly with the TSE’s own i60s, based on the S&P/TSE 60 index. The net expenses of the fund are expected to be only eight basis points of assets.

CIBC World Markets has been appointed as the fund’s special dealer. Its underwriters include CIBC, BMO Nesbitt Burns, RBC Dominion Securities Inc., TD Securities Inc. and Scotia Capital Inc.

The initial issue of $200 million is secured by the Caisse de depot et placement du Quebec in a private placement. Once the units are listed for trading, investors will be able to trade the fund on the TSE.
-IE Staff