A preference share is a stock which provides a specified dividend that is paid before any dividends are paid to ordinary shareholders, and which takes precedence over common stock in the event of liquidation.  Preference shares are hybrid securities, they have both equity and debt characteristics. Like common stock, preference shares represent partial ownership in a company, although preferred stock shareholders do not enjoy any of the voting rights of common stockholders.

Index Detail

The Preference Share Index consists of non-convertible, non-redeemable, floating rate preference shares.
Name  Preference Share
Index Code           J251
Alpha Code PREF
Index Category Preference Share
Universe JSE listed non-convertible, non-redeemable, floating rate preference shares
Fixed No. of Companies No
Liquidity Screening             No
Free Float Screening Preference Shares are deemed to have a free float of 100%  
Other Screening Only non-convertible, non-redeemable, floating rate preference shares qualify
Weighting Methodology Free Float Market Cap Weighted
Capping Methodology N/A
Index Review Quarterly in March, June, September and December
Buffer Size            N/A
Dissemination End of Day
Live Date               2008/07/16
An alternate for the Preference Share Index (J251), whereby the Total Return Index (TRI) is calculated using net dividend rates (“net in the hands of the SA investor”). Dividend withholding tax is deducted from the declared dividend with the resulting net dividend used in the XD adjustment.
Name  Preference Share Net Total Return
Index Code           JN51
Alpha Code PRFN
Index Category Preference Share
Universe JSE listed non-convertible, non-redeemable, floating rate preference shares
Fixed No. of Companies No
Liquidity Screening             No
Free Float Screening Preference Shares are deemed to have a free float of 100%  
Other Screening N/A
Weighting Methodology Free Float Market Cap Weighted
Capping Methodology N/A
Index Review Quarterly in March, June, September and December
Buffer Size            N/A
Dissemination End of Day
Live Date               2013/11/25