CORRECTING and REPLACING SWM Index Rebalances Canadian Energy Indexes

Updated

CORRECTING and REPLACING SWM Index Rebalances Canadian Energy Indexes

Oil Sands Investment Index Rotates into Bull Mode Allocation


THE WOODLANDS, Texas--(BUSINESS WIRE)-- Second graph, second sentence should read: The index has 13 constituents and a 1.76 percent forward dividend yield following its rebalance on September 30, 2012. (sted The index has 13 constituents and a 1.76 percent forward dividend yield following its rebalance on June 29, 2012.) Also, tickers were added for searching purposes.

The corrected release reads:

SWM INDEX REBALANCES CANADIAN ENERGY INDEXES

Oil Sands Investment Index Rotates into Bull Mode Allocation

SWM Index LLC, an independent provider of energy-focused investment indexes, today announced the rebalance of its three oil sands related indexes. The rebalanced indexes include the Sustainable Oil Sands Sector Index® (SOSSI), SWM Canadian Energy Income Index® (SWMEI) and Sustainable North American Oil Sands Index® (SNAOSI).

The Sustainable Oil Sands Sector Index (SOSSI) tracks the largest, most liquid Canadian based energy companies with production in Canada's oil sands regions. The index has 13 constituents and a 1.76 percent forward dividend yield following its rebalance on September 30, 2012. The complete list of holdings can be viewed at www.swmindex.com/oilsands/holdings.

"The recent offer by China's CNOOC to purchase Nexen, an index constituent, means that the sector is in play. I expect more constituents to become takeover targets if this deal is approved by regulators," states index creator Derek Gates.

The SWM Canadian Energy Income Index (SWMEI) tracks both oil sands and high yield Canadian energy companies. The index oscillates between the two sectors based on WTI Crude oil spot price trends. The recent rise in crude oil prices resulted in a switch to the Bull Mode allocation for Q4, 2012, with a 70 percent weighting to Canadian oil sands companies and 30 percent to Canadian high yield energy companies. The forward yield is 2.88 percent and the number of constituents remains at 40. The list of holdings can be viewed at www.swmindex.com/canadianenergy/holdings.

"The switch to our Bull Mode Allocation is timely given the recently proposed Nexen buyout and US Federal Reserve's recommitment to quantitative easing," asserts Gates. "The combination of a strong Canadian dollar, M&A activity and rising energy production could result in a strong period of outperformance for Canadian energy stocks."

The Sustainable North American Oil Sands Index (SNAOSI) tracks the widest range of companies involved in the Canadian oil sands sector. These index constituents cover all aspects of the sector including production, pipelines, energy services, engineering/construction and refinery/integrated oil. As of the current rebalance, there are 38 constituents and a forward yield of 3.00 percent. The list of holdings can be viewed at www.swmindex.com/snaosi/constituents.

"The goal of the SNAOSI index is to invest in the energy related businesses that will benefit the most from the growth in the Canadian oil sands sector," says Gates. "The index provides investors with greater diversification, higher growth prospects, higher dividend income and lower concentration risk than traditional market cap based energy indexes."

The following Exchange Traded Products are linked to SWM's indexes:

SYMBOL

SPONSOR

INDEX

SNDS on NYSE Arca

Exchange Traded Concepts, LLC

SNAOSI

www.swmetfs.com/funds/SNDS

ENY on NYSE Arca

Guggenheim Investments

SWMEI

www.guggenheimfunds.com/etf/fund/eny

CLO on TSX

Blackrock/iShares Canada

SOSSI

ca.ishares.com/product_info/fund/overview/CLO.htm

OILSN

Royal Bank of Scotland

SOSSI

www.markets.rbsbank.ch

SWM Index LLC

21 Waterway Avenue, Suite 300

The Woodlands, TX 77380

www.SWMindex.com



For SWM Index LLC
Luke Napoli, 610-228-2127
Luke@GregoryFCA.com

KEYWORDS: United States North America Canada Texas

INDUSTRY KEYWORDS:

The article CORRECTING and REPLACING SWM Index Rebalances Canadian Energy Indexes originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement