FTSE's Approach to Nationality Within Indices
In an age of multinational companies and multinational listings, the factors affecting the determination of the nationality of companies for inclusion in indices have become more complex. For the investment community, nationality is, and is likely to remain, a significant factor in decisions around how assets are invested.
FTSE's market consultation on nationality
FTSE Group recognises the importance of having a transparent, objective and consistent approach for determining the nationality of companies included in FTSE indices. In order to keep abreast of market views, FTSE recently conducted a broad market consultation in order to seek input from the investment community on the principles to be followed in dealing with these issues.
Based on the responses to the market consultation, there was no market requirement to change the current rules. However, for additional clarity and guidance, FTSE has published a Practice Note to provide greater detail on the principles used by FTSE's Nationality Committee to assign companies to countries within its index series. These principles will be applied to all new listings/entrants into FTSE indices going forward.
Click on the link to download the Practice Note.
Further Information