Jantzi Research maintains the Jantzi Social Index^® at 60 companies at all times, deleting companies when necessary and identifying appropriate replacements. Jantzi Research keeps turnover of the JSI to a minimum.

Most alterations to the JSI result from material changes to the companies themselves. For example, Jantzi Research has removed companies from the JSI because they ceased to be publicly traded. Companies cease to trade upon being acquired by another firm, splitting into two or more companies, entering bankruptcy proceedings, or otherwise ceasing to operate as their former entities. Aside from imminent bankruptcy, Jantzi Research does not remove a company for financial reasons, including stock valuation.

Jantzi Research also removes companies for environmental, social, or governance reasons. If a company enters (through acquisition or otherwise) a business explicitly excluded by the JSI's rating criteria, such as military contracting, nuclear power, or tobacco production, Jantzi Research removes it from the index immediately.

If a company's record deteriorates significantly with respect to one of the more complex issues represented in the framework (aboriginal relations. community involvement, corporate governance, employee relations, environment, or human rights), Jantzi Research will carefully evaluate the nature and extent of the decline in performance. Jantzi Research is reluctant to remove companies from the JSI due to such concerns unless it is clear that these issues will be long term and of major proportion. If a company is removed for environmental, social, or governance reasons Jantzi Research will not add it back for a period of at least two years. Jantzi Research has adopted this conservative practice with respect to removing companies to avoid the appearance of active management of the JSI.

In selecting companies to add to the JSI, Jantzi Research considers three primary factors. First, Jantzi Research favours companies with strong environmental, social, and/or governance performance. Second, Jantzi Research favours companies in sectors in which the JSI is underweighted relative to the S&P/TSX 60. Third, Jantzi Research favours companies with larger rather than smaller market capitalizations. Jantzi Research also favours firms that are listed on the S&P/TSX Composite Index.

Not all companies that are added to the S&P/TSX 60 will be added to the JSI. Even if a company added to the S&P/TSX 60 qualifies for the JSI on environmental, social, and/or governance grounds it may be in an industry that is already overweighted on the JSI. For example, the JSI currently is overweighted in the financial services sector relative to the S&P/TSX 60. Consequently, Jantzi Research is not inclined to add a company in this sector even if it is added to the S&P/TSX 60.