FTSE International Launch Multinationals Creating A New Framework For Indices

FTSE International earlier this week launched its Multinational Index Series. The series comprises a broad benchmarking multinationals index and a range of local and regional indices. This new 'multinational' series has been requested by 69% of institutional investors. They wanted index benchmarks that more accurately reflect the economic environment in which companies exist. This new series has been developed in conjunction with Bacon & Woodrow and Barclays Global Investors following a year-long research and consultation process, and joins FTSE International's existing index series, such as the FTSE Eurotop 300 and FTSE All-Share, which will all remain unchanged. FTSE's new local indices allow investors to focus on domestic or regional investment briefs, whilst the multinational indices provide a 'super-league' of the world's largest corporations for global investors. This is necessary because current national divisions in investment are becoming less relevant, following the mergers of international super-companies such as DaimlerChrysler, BP Amoco and AstraZeneca. These new indices will also allow finance directors of multinationals companies in sectors such as pharmaceuticals, IT hardware and oil & gas to benchmark themselves alongside their global competitors. Mark Makepeace, Managing Director of FTSE International, said: "Fund managers need a range of tools to tackle global investment decisions. FTSE International now provides a huge number of options of how to analyse markets and set benchmarks. Whether managing funds on a country, regional, industry or multinational/local basis, FTSE aims to be the first and best choice." Nick Fitzpatrick, Head of Bacon & Woodrow's investment practice, added, "A fresh approach is needed so that benchmarks for investment strategy can reflect the economic reality behind the performance of a company's shares. These new indices give investors the tools they need to control the risk of their investments." Matthew Annable, Managing Director of Active Equities at Barclays Global Investors, Europe, commented "Good benchmarks are robust benchmarks. Therefore, our research into the development of these new indices has been driven by the need to give investors a real option reflecting the real world. We believe that they do just that."