FTSE Group (“FTSE”), the award winning global index provider, today announces the launch of the FTSE Infrastructure Index Series (FIIS); a comprehensive and complementary set of nine indices diversified across six infrastructure sub-sectors, to reflect the market’s evolving definition of infrastructure. The FIIS enables investors to research, benchmark and gain exposure to both physical infrastructure assets and the important networks, support and conveyance services that underpin global infrastructure development.
The new index series provides investors with balanced exposure to global infrastructure whilst reducing the risk of over-concentration in individual sectors. Both core infrastructure (companies that derive over 65% of their revenue from infrastructure) and infrastructure related opportunities (companies that derive over 20% of their revenue from infrastructure) are incorporated in the index series, offering investors the flexibility to tailor exposure in accordance with investment objectives and risk appetites.
The six infrastructure sub-sectors included in the FIIS are:
· Telecommunications Core Infrastructure
· Energy Core Infrastructure
· Transportation Core Infrastructure
· Infrastructure-Related Conveyance Services
· Infrastructure-Related Communications Services
· Infrastructure-Related Materials & Engineering
The FIIS captures the performance of more than 800 stocks from over 40 developed and emerging markets. Constituents are screened according to FTSE’s unique definition of infrastructure and selected from relevant ICB subsectors within the FTSE All-Cap Index. This selection aims to provide an unparalleled degree of diversification and a comprehensive representation of the performance of global infrastructure assets.
The modular approach within the index series enables investors to refine infrastructure exposure to specific sectors and geographical regions and can be used as the basis for targeted mandates, ETFs, index funds and structured products.
“The FTSE Infrastructure Index Series responds to the rapidly growing interest in this asset class, as investors seek out new sources of return and diversification,” said Mike Bruno, Director of Index Research at FTSE. “This index series gives market participants greater choice, freedom and flexibility in the way they manage their infrastructure exposure and helps to create new investment opportunities.”
Fundamental research on the constituents of the FTSE Infrastructure Index Series is provided by LPX Group. More information about the FTSE Infrastructure Index Series is available at http://www.ftse.com/Indices/FTSE_Infrastructure_Index_Series/index.jsp
