Investing July 13, 2000

FTSE and Russell Seal Strategic Global Index Alliance

July 13, 2000 (PLANSPONSOR.com) - FTSE and Frank Russell Thursday announced a cooperative effort to align their various indexes, a move that will enhance the global profile of both companies and provide plan sponsors with more homogenous worldwide benchmarks.
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Under the agreement:

  • Russell will adopt the FTSE Global Classification System for its US Equity Indexes, including the Russell 3000 Index; the Russell 1000 Index and the Russell 2000 Index by 31 December 2000
  • FTSE will provide real time calculations of the Russell Indexes, effective 1 July 2001
  • Russell and FTSE will jointly market and distribute the other’s index products
  • FTSE and Russell will seek to align the rules governing both sets of indexes so that, where practicable, any significant differences will be removed.

The tie-up will result in greater US penetration for FTSE’s global indexes, and greater European penetration for Russell’s US indexes, according to the announcement.

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“Collaboration between FTSE and Frank Russell on production, industry classification and marketing will substantially benefit plan sponsors by increasing the industry’s market focus on broad-based investable indexes that appropriately reflect the market opportunity set,” Steven Schoenfeld, Head of International Equity Strategy at Barclays Global Investors said in a statement released by Frank Russell.

FTSE International Limited is a leading expert in equity indices. The jointly operation of the London Stock Exchange and the Financial Times manages and develops globally recognised indices ranging from the FTSE World Index to the real-time FTSE Eurotop series and the FTSE 100.

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