FTSE4Good in first index rebalancing
GLOBAL – FTSE has carried out the first review of its fledgling SRI index FTSE4Good, deleting four firms from the FTSE4Good Global 100 index, including Germany’s Hypo Vereinsbank and Compaq Computers of the US.
Canada’s Nortel Networks and US software firm Veritas also fell from of the index.
In their place, France’s Aventis rose to 33rd in the index after becoming eligible under the FTSE4Good criteria. Royal Bank of Scotland and Total Fina Elf also satisfied the FTSE criteria for the first time joining at 26th and 15th spot respectively in the index.
National Australia Bank also made the ranking at number 91 under the rebalancing.
Under the reviews of the FTSE4Good Europe and UK indices an additional thirty companies met the corporate social responsibility (CSR) entry criteria for the European benchmark index, while thirty-seven UK companies made the grade for the UK benchmark index.
The FTSE4Good UK 50, a tradable index which ranks eligible companies by market capitalisation, had four additions and deletions.
More than 100 companies submitted updated company information for the UK index, and asked to be considered for inclusion in the indices, according to FTSE.
“The overwhelming interest from companies to be included in the FTSE4Good series is proof of UK businesses’ commitment to CSR. It’s great news that the FTSE4Good index series has acted as a catalyst to promote best practice and raise awareness of socially responsible investment, ” says Mark Makepeace, FTSE chief executive.
Changes to the FTSE4Good European, US and Global indices can be seen at http://www.ftse4good.com.
All changes announced today will be applied at close of business on Friday 21 September.