FTSE and EDHEC create risk adjusted indices

The FTSE EDHEC-Risk Efficient Index Series, available to investors globally, is designed to capture equity market returns with an enhanced risk-return ratio. This enhancement is achieved by maximising the Sharpe ratio, which measures risk-adjusted performance, by weighting the constituents of the indices accordingly. The constituents in the indices are derived from the FTSE All World Index Series. FTSE Group chief executive Mark Makepeace says: "Increasingly, investors are looking to diversify their core passive funds across a range of benchmarks weighted by market cap and other weigh...