FTSE Group Has Sole Rights To License FTSE RAFI Index Series

In response to market reports in South Africa, FTSE Group (“FTSE”), the global index provider, confirms that it holds exclusive rights to calculate and license the FTSE RAFI Index Series, a fundamentally weighted global index, designed in partnership with Research Affiliates (RA), the California-based investment firm.

Licenses for the creation of any index-linked investment products based on the FTSE RAFI Index Series may only be issued by FTSE and its partners. In South Africa, FTSE is working with the JSE to create a FTSE RAFI Index for South Africa and more details will be announced in due course. No funds, derivatives, ETFs or any other index based investment vehicles using the new South Africa index can be created or traded without a licence from FTSE and JSE.

Imogen Dillon Hatcher, FTSE’s Managing Director, commented, “The FTSE RAFI Series is proving to be a popular complement to many traditional cap weighted indexes, and is being used by an increasing number of asset owners worldwide as a diversification tool. FTSE is delighted to be in discussion with asset owners and their managers about the scope, application and potential licensing opportunities of the series.”

More information about the FTSE RAFI Series which currently includes 49 country, segment and sector indices is available at www.ftse.com/rafi.

About FTSE Group
FTSE Group is a world-leader in the creation and management of indexes. With offices in London, Frankfurt, Hong Kong, Madrid, Paris, New York, San Francisco, and Tokyo, FTSE Group services clients in 77 countries worldwide. It calculates and manages the FTSE Global Equity Index series, which includes world-recognised indexes ranging from the FTSE All-World Index, the FTSE4Good series and the FTSEurofirst Index series, as well as domestic indexes such as the prestigious FTSE 100.
FTSE indexes are used extensively by investors worldwide for investment analysis, performance measurement, asset allocation, portfolio hedging and for creating a wide range of index tracking funds. Independent committees of senior fund managers, derivatives experts, actuaries and other experienced practitioners review all changes to the indexes to ensure that they are made objectively and without bias. Real-time FTSE indexes are calculated on systems managed by Reuters. Prices and FX rates used are supplied by Reuters.