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GMP SECURITIES L.P. LAUNCHES GMP JUNIOR OIL AND GAS INDEX

^{Published on 2011-02-01 05:05:51 - Market Wire}
 

TORONTO, Feb. 1 /CNW/ - GMP Capital Inc. (TSX: GMP) today announced that GMP Securities L.P. ("GMP Securities") has launched the GMP Junior Oil and Gas Index ("GMP Junior Oil and Gas Index" or the "Index"). The GMP Junior Oil and Gas Index is designed to provide investors with an investable index that tracks the performance of small to mid-capitalization Canadian oil and gas exploration and production companies that are publicly listed on the Toronto Stock Exchange ("TSX"). The GMP Junior Oil and Gas Index, which is comprised currently of 48 constituents, is calculated by Standard & Poor's and can be tracked live on Thomson ONE under the ticker symbol "MPO/Y-CM", Reuters under the ticker symbol ".GMPOG" and on Bloomberg under the ticker "GMPOG".

"This is the first time GMP Securities has been involved in the creation of an index. We believe the Canadian junior oil and gas sector did not have an appropriate real-time benchmark to track the relative securities performance and accurately reflect some of the key fundamental investment features of Canadian junior oil and gas companies," said Wade Felesky, Managing Director, Investment Banking, GMP Securities. Commenting further, Mr. Felesky said, "This index was developed with the application of our extensive market knowledge and in-depth industry research, which we believe will set it apart as the benchmark of choice in the Canadian junior oil and gas sector. Launching the GMP Junior Oil and Gas Index is a logical extension of GMP's core strength and further advances our brand as a recognized leader in the North American resource sector."

Index constituents have been quantitatively selected and are float-adjusted, market capitalization weighted, with the relative weight of any single index constituent being capped at 10%. The market capitalization of index constituents ranges from $100 million to $3 billion. The GMP Junior Oil and Gas Index will be rebalanced quarterly. Management believes the Index represents an efficient way to gain exposure to and track the performance of Canadian small to mid-capitalization oil and gas companies.

The top ten constituents by weight are listed below as at January 31, 2011:

Concurrent with the launch of the GMP Junior Oil and Gas Index, GMP Securities is also pleased to also announce that it has entered into exclusive licensing discussions with BetaPro Management Inc. ("BetaPro") to use the GMP Junior Oil and Gas Index in an exchange traded fund offering. BetaPro has filed a preliminary prospectus in respect to the initial public offering of Class A units of the Horizons BetaPro GMP Junior Oil and Gas Index ETF (the "ETF"). The ETF's investment objectives are to seek to replicate, to the extent possible, the performance of the GMP Junior Oil and Gas Index, net of expenses.

Further information about the GMP Junior Oil and Gas Index can be found on GMP Securities' website at [ www.gmpsecurities.com ].

Exposure to an asset class is available through investable instruments based on an index. It is not possible to invest directly in an index. GMP does not sponsor, endorse, sell, promote or manage any investment fund or other vehicle that is offered by third parties and that seek to provide an investment return based on the returns of this Index.

ABOUT GMP CAPITAL INC.
GMP Capital Inc. carries on business through the following principal entities: GMP Securities L.P., Griffiths McBurney Corp., GMP Securities Europe LLP, EdgeStone Capital Partners, L.P. and GMP Investment Management L.P. GMP Capital Inc. also has a significant non-controlling ownership interest in Richardson GMP Limited. The GMP Capital Inc. website is located at gmpcapital.com. GMP Capital Inc. has offices in Toronto, Calgary, Montreal and London, England. GMP Securities L.P. is a leading independent Canadian investment dealer focused on investment banking and institutional equities for corporate clients and institutional investors. GMP Securities L.P. can be found on the web at gmpsecurities.com. Griffiths McBurney Corp. services institutional clients in the United States while GMP Securities Europe LLP provides investment banking and institutional equity services to clients located in Europe. EdgeStone Capital Partners, L.P. is a leading private equity firm, providing capital, strategic direction and business and financial advice to help promising mid-market and early stage companies achieve their full potential. EdgeStone Capital Partners, L.P. can be found on the web at edgestone.com. GMP Investment Management L.P., through its private funds, seeks to generate superior riskadjusted investment returns over the long term by executing selected investment strategies. GMP Investment Management L.P.'s offerings are aimed at both high-net-worth individuals and institutional investors. GMP Investment Management L.P. can be found on the web at gmpim.com. Richardson GMP Limited is a full-service investment firm, combining tradition and innovation to offer Canadian families and entrepreneurs access to innovative wealth management and investment services delivered by an experienced team of independent investment professionals. Richardson GMP Limited can be found on the web at [ richardsongmp.com ].

GMP Junior Oil and Gas Index (the "Index") is the exclusive property of GMP Securities, which has contracted with Standard & Poor's Financial Services LLC ("S&P") to maintain and calculate the Index. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC "Calculated by S&P Custom Indices" and its related stylized mark(s) are service marks of Standard & Poor's Financial Services LLC and have been licensed for use by GMP Securities. S&P and its affiliates shall have no liability for any errors or omissions in calculating the Index.

Forward-Looking Statements
This press release contains "forward-looking statements" as defined under applicable Canadian securities laws including such forward-looking concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent management's beliefs, expectations, estimates and projections regarding future events, many of which, by their nature, are inherently uncertain and beyond our control. These statements include, but are not limited to, statements made with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.

These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those described in this press release. GMP's primary business activities are both competitive and subject to various risks. These risks include market, credit, liquidity, operational and legal and regulatory risks and other risk factors including, without limitation, variations in the market value of securities, the volatility and liquidity of equity trading markets, the volume of new financings and mergers and acquisitions, competition in the marketplace for suitable investments, sustainability of fees, nature and type of portfolio company investments, ability to realize carried interest entitlements and dependence on key personnel. Other factors, such as general economic conditions, including exchange rate fluctuations, may also have an effect on GMP's results of operations. Many of these risks and uncertainties can affect our actual results and could cause our actual results to differ materially from those expressed or implied in any forward-looking statement made by us or on our behalf. For a description of risks that could cause our actual results to materially differ from our current expectations, please see the "Risk Management" section in GMP's 2009 Annual MD&A and "Risk Factors" in GMP's annual information form dated March 1, 2010. Material assumptions or factors underlying the forward-looking statements contained in this press release are set out in the "Business Environment and Market Outlook" section in the 2009 Annual MD&A, as updated in GMP's Management's Discussion and Analysis for the three and nine months ended September 30, 2010 and include, without limitation, a slow-down in global economic growth rates from earlier this year; low inflation; expectations of additional quantitative easing by some major central banks; increased public offering, M&A and securities trading activity influenced by a rally in the market during late third quarter 2010; continued United States dollar weakness; and the implementation of fiscal and monetary measures to address sovereign debt concerns in Europe. Although forward-looking information contained in this press release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Certain statements included in this press release may be considered a "financial outlook" for purposes of applicable Canadian securities laws, and as such the financial outlook may not be appropriate for purposes other than this press release. The forward-looking statements contained in this press release are made as of the date of this press release, and should not be relied upon as representing GMP's views as of any date subsequent to the date of this press release.