A FTSE International paper on how companies with restricted shares are treated in its indices will b...
A FTSE International paper on how companies with restricted shares are treated in its indices will be released this autumn.
Graham Colbourne, director of operations at FTSE International, said: "The release will certainly be in the autumn, in weeks rather than months.
FTSE sent out a consultation paper on how companies with substantial chunks of shares held by one group, which are not available to the market, should be represented on the indices.
Both cross holdings of existing listed companies and the position of free floats are being considered.
Companies such as British Sky Broadcasting (BSkyB) would be affected by any changes to the representations on the indices. BSkyB is 39.81% owned by News International, part of the Australian-based News Corp group, and 12.8% by BSB Holdings.
Colbourne said: "We are looking at whether to adjust the indices to reflect the fact those shares are not available to the public.
The paper also covered how to define the nationality of companies that are increasingly global. For example, BP Amoco, the largest group by market capitalisation in the FTSE UK indices, is based in the UK, earns in dollars and operates in 70 countries around the world.
Responses from the financial community have been received and the FTSE World Indices policy committee, which has responsibility for the FT&SP World Indices and the FTSE steering committee, which controls the UK and European series of indices, are currently considering the issues.
FTSE will also launch a global index this autumn to cover multinational companies. It will be aimed at institutional investors as a diversification tool and will also include companies from the top 25% of the FTSE All-Share.
FTSE became involved in the development of the index after being presented with research produced by Barclays Global Investors (BGI) and actuaries and consultants Bacon & Woodrow (B&W).
A consultation process was completed at the end of July and FTSE was now considering the responses.
An announcement on the index is expected soon.
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