core sector communique

New S&P/ASX Infrastructure Index

Sydney, 12 Nov., 2009 - S&P Indices (S&P) and the Australian Securities Exchange (ASX) today announced the launch of an Australian infrastructure benchmark – the S&P/ASX Infrastructure Index – which will be available from Monday Nov. 16, 2009. The new index will add to the Australian-focused S&P/ASX suite of indices while also forming part of the global S&P Thematic Indices family, which includes the S&P Global Infrastructure Index.

Constituents of the S&P/ASX Infrastructure Index are drawn from the transportation and utility sectors of the S&P/ASX 300 index to maximise liquidity and tradability. The index methodology borrows from that used by the S&P Global Infrastructure Index while also being tailored for Australian market conditions, and will be available via S&P as an end-of-day index.

Richard Murphy, General Manager, Equity Markets, ASX said: “This latest index initiative is in line with the ASX and Standard & Poor's longer term plan for index product coverage. For the last five years both organisations have worked with a wide range of market stakeholders to ensure index coverage exists for Australia's key industry sectors. The new Infrastructure Index joins the S&P/ASX Emerging Companies, AREIT, LIC, Gold, and Metals & Mining indices, which have all been developed under this plan. Index coverage and capital and secondary market investment are closely aligned, which has been the driving force for these developments.”

Simon Karaban, Director, Research and Design with S&P Indices said: “Infrastructure investing was pioneered in Australia and there has always been strong interest in infrastructure assets within the Australian market. Over time it has been recognised as a distinct asset class, with listed infrastructure stocks offering stable yields and low correlations with stocks and bonds, adding diversification benefits.”