FTSE expands infrastructure index series with two capped indices

Feb 5th, 2015 | By | Category: Alternatives / Multi-Asset

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FTSE, a leading provider of indices, has announced the expansion of its FTSE Infrastructure Index Series with the launch of two capped core infrastructure indices.

FTSE expands infrastructure index series with two capped indices

The FTSE Infrastructure Index Series is a comprehensive set of nine cap-weighted indices designed to reflect the performance of infrastructure and infrastructure-related listed securities worldwide. (© David Brodbeck)

The new indices are the FTSE Global Core Infrastructure Capped 50/50 Index, measuring the performance of listed infrastructures securities in both developed and emerging markets globally, and the FTSE Developed Core Infrastructure Capped 50/50 Index, measuring the performance of developed market opportunities.

The parent index series captures the performance of listed infrastructure securities in both developed and emerging markets. Constituents are selected by further screening companies who derive revenues from infrastructure related activities within particular Industry Classification Benchmark (ICB) sub-sectors of the FTSE Global All Cap Index.

The new capped versions of the indices adjust the exposure of certain infrastructure sub-sectors, whilst still representing the global and developed universes of companies included in the FTSE Core Infrastructure Indices.

FTSE defines infrastructure as companies that own, manage or operate structures or networks, which are used for the processing or movement of goods, services, information/data, people, energy and necessities from one location to another.

FTSE’s definition also includes the businesses that provide the means of conveyance and the conveyance itself, not the goods or services that are carried by the conveyance. This includes both the network (e.g. roads, bridges, tunnels, pipelines, wires, wireless, depots, ports, airports, etc) and the actual “rolling stock” that conveys the goods, services, information/data, people, energy and necessities.

The indices have been designed for use as underlyings for index-linked investment products such as exchange-traded funds (ETFs) and as effective benchmarks for actively managed listed infrastructure securities funds.

Ms Jessie Pak, FTSE Managing Director, Asia said: “The enhancement to FTSE’s Infrastructure Index Series, incorporating new capped versions, gives market participants an industry-defined interpretation of infrastructure. Through discussions with market practitioners we have increased the exposure of particular infrastructure sub-sectors, allowing for a broader representation of this growing asset class.”

The new indices will be available from 2 March 2015.

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