The Tel-Aviv Stock Exchange Launches a New Index - TA-Dual Listing

TEL AVIV, Israel, April 28, 2021 /PRNewswire/ -- The Tel-Aviv Stock Exchange (TASE: TASE) announced today the launch of a new index - TA-Dual Listing and the upgrading of the "Insurance Shares and Convertibles" Index to include insurance sector shares from the Tamar Universe and serve as a real-time index for index-tracking products, with a weight cap of 20% per share in the index.

New Index - TA-Dual Listing - The Appeal of Trading in Dual Listed Shares

For more than two decades, TASE has been dedicating significant efforts to encouraging Israeli companies that chose to be listed overseas to also list their shares on TASE. Dual listed companies enjoy regulatory exemptions, both as regarding listing requirements and the reporting of corporate events. They also enjoy a dedicated fast-track entrance to TASE's indices (a track that was later expanded to include companies performing an IPO).

Most dual listed shares are listed in New York and the parallel trading in Israel expands their weekly trading to 6 days and stretches their trading hours from 9 am to 11 pm (10 pm on Israeli standard time) on Mondays through Thursdays. The market cap of the dual listed shares that are included in the Tamar Universe (the scope of shares that qualify for inclusion in the indices) is close to NIS 280 billion, with a free float rate of more than 80%. Of the 44 Israeli oriented dual listed shares included in the Tamar Universe - 26 shares are included in TA-125, of which 12 are included in TA-35 and 11 are included in TA-SME60, allowing for a particularly diverse composition of the Index.

An index that comprises dual listed shares will underscore TASE's pivotal role as a hub for Israeli companies listed overseas that have not yet listed on TASE. Furthermore, the high tradability of dual listed companies is an attractive feature for investors, which value liquidity. It should be noted that the trading on TASE represents 32% of total trading on TASE and overseas. Dual listed shares enjoy exposure to both Israeli and foreign investors as well as a broader analytical coverage, as international companies operating in multiple markets globally.

In view of the aforesaid, TASE has decided to launch the TA-Dual Listing Index that will comprise the dual listed shares from the Tamar Universe. Weight limit in index - 5% per share.

Presented below are the characteristics of the index, based on the simulation performed on March 18, 2021 (see Appendix A):

1. Number of shares in the index - 44
2. Market cap - NIS 270 billion
3. Free float value - NIS 219 billion
4. Overlap with the TA-Global BlueTech Index, the dominant sectors of the index are Technology and Biomed, with a combined weight of 85%.
5. Composition of the index, by market cap indices:
   a.  Shares included in TA-35 - 12
   b.  Shares included in TA-90 - 14
   c.  Shares included in TA-SME60 - 11
   d.  Shares included in TA-Growth - 7

TA-Dual Listing index will be launched on June 6, 2021 (on the Monthly Rebalance Date in June).

Upgraded Index: TA-Insurance - In Response to the Demand for a Dedicated Insurance Index

The "Insurance Shares and Convertibles" Index (an end-of-day index) was launched in January 1984 as a benchmark index that comprises shares, convertible bonds and warrants. In November 2007, KSM launched an ETN on the index (which was converted into an ETF in November 2018 under Amendment 28 of the Securities Authority). The total AUM in the ETF is NIS 265 million, however this index is not suitable for index-tracking products. For example, the methodology of the index allows the inclusion of new convertible securities of insurance companies ("new generation" equity indices include shares only). Additionally, the index does not contain mechanisms that are necessary for the tracking of the index, such as IANS (Index Adjusted Number of Shares), reflection of the free float rate of the security's weight in the index, and solid principles for the joining of and removal from the index, which are essential for product issuer and tracking products.

Insurance is one of the principal sectors of the Israeli economy, with significant presence on TASE. Israeli insurance companies have been attracting growing interest from investors, with several material investments being secured, including growing interest by Insuretech investors. Unlike the TA Insurance-Plus Index, which also includes shares of companies from the extended Finance Sector (insurance shares represent 60% of the index), TA-Insurance is exclusively comprised of shares of insurance companies and is expected to draw high demand from both institutional investors, which are often bound by regulatory restrictions that prohibit their direct exposure to insurance shares at the desired scope, and from the retail investors, which will be able to enjoy exposure to investment products on an index that is dedicated to the local insurance companies.

Accordingly, TASE has decided to upgrade the old-standing "Insurance Shares and Convertibles" Index, applying the end-of-day principles, into another real-time index of the Tamar Universe, renaming it "TA-Insurance" - Simulation of the index, as performed on March 18, 2021 (see Appendix B):

The index will comprise insurance sector shares that are included in the Tamar Universe, with a weight cap of 20% per share in the index, and will be governed by the methodology that applies to Tamar Universe indices.

TA-Insurance index will be launched on June 6, 2021 (on the Monthly Rebalance Date in June).

The record date for determining the composition of the two aforesaid indices will be the end of trading on May 13, 2021 (Record Date for the June Rebalance).

Appendix A

Appendix B

Contact:
Orna Goren
Head of Communication and Public Relations Unit
Tel: +972-76-816-0405
[email protected]

SOURCE The Tel Aviv Stock Exchange Ltd.