The new FTSE All-World Index series was successfully launched at the end of June 2000 and has attracted significant interest since that date. The new index is supported by Global-Pro, a ground-breaking index tailoring service for investors. Global-Pro allows fund managers to customise the FTSE All-World Index, choosing the precise make-up of the index to provide a benchmark which exactly matches their investment strategy.
A full list of these new stocks is shown on the FTSE web-site FTSE.COM (in the news section, story with the above headline). The FTSE All-World Index includes 49 countries and over 2,400 stocks.
Free float
All 27 of the new stocks added into the FTSE All-World Index have been free float adjusted in line with FTSE's free float policy announced in August 1999.
FTSE was the first major index provider to introduce free float adjustment to its indexes following extensive market consultation undertaken by FTSE during 1999. Since 1 January 2000 all new entrants into FTSE indexes have been free float adjusted. The change to free float rules was supported by over 80% of fund managers involved in the consultation process, who specifically requested a long lead time to adjust their portfolios for such a significant change.
The new free float rule will be applied to existing constituents of all FTSE indexes at the quarterly review in June 2001 and will become effective after close of business on 15 June 2001.
FTSE will be announcing the free float adjustment for all European stocks later this year. Global index adjustments will be announced early in 2001. This will ensure the markets and fund managers have a significant period of notice to prepare and react to these changes.
