FTSE Group To Create 5% Capped Index Series For UK

In response to market demand, FTSE Group, the global index provider will start calculating the FTSE CAP 100 5% Index and the FTSE CAP All-Share 5% Index from Monday 20th June 2005. The companies in the indices will be the same as the standard FTSE 100 and FTSE All-Share indices, but those constituents with large weightings are being capped back to 5%. The FTSE Capped 5% Index Series provides accurate indices that meet the needs of particular investment requirements.

Imogen Dillon Hatcher, Managing Director, FTSE EMEA said, “FTSE is very responsive to the needs of its clients. Some very large cap UK companies like BP, HSBC and Vodafone have increased in size, and therefore their weightings within the FTSE All-Share and FTSE 100 indices have also increased. Some investors manage funds in which they choose to restrict the exposure to these companies. The new FTSE Capped 5% indices provide investors with the tools to measure and rebalance their portfolios in line with this specific requirement.”

FTSE will continue to develop new indices that will sit alongside its existing index series to meet specific needs of global investors and pension fund managers. More information including the index constituents, weightings and index ground rules will be available on www.ftse.com from 20th June 2005.