FTSE Russell Market Consultation

Potential Enhancements to the
FTSE Global Core Infrastructure
50/50 Index
October 2023

Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

Overview
FTSE Russell is consulting index users on potential enhancements to the
FTSE Global Core Infrastructure 50/50 Index, and confirmation that the
proposed changes do not conflict with investor views such that the FTSE
Global Core Infrastructure 50/50 Index remains consistent with the aims of theinvestment objectives.

FTSE Russell

2Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

Contents
Introduction ........................................................................................................................................................................................ 4
Simulated Results .............................................................................................................................................................................. 5
Primary areas considered for index methodology enhancement ....................................................................................................... 5
Potential index methodology enhancements and consultation questions .......................................................................................... 6
Appendix I........................................................................................................................................................................................ 13
Appendix II....................................................................................................................................................................................... 16
Appendix III...................................................................................................................................................................................... 17

FTSE Russell

3Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

Introduction
FTSE Russell is consulting index users on potential enhancements to the FTSE Global Core Infrastructure 50/50 Index, andconfirmation that the proposed changes do not conflict with investor views such that the FTSE Global Core Infrastructure 50/50
Index remains consistent with the aims of the investment objectives.
Infrastructure, as an asset class, has several key characteristics:-

More stable returns – companies operate in highly regulated industries that provide essential services to the community.
Often the companies have pricing power that tends to be more resilient and stable than the broader equities market.

-

Diversification benefits – often infrastructure asset have different characteristics to mainstream asset classes enabling
the investments to diversify some of the risks in a multi-asset portfolio.

-

Better protection from inflation – the price of products and services are often determined by regulators, governments orwritten into long-term contracts. The usage rates are typically linked to inflation, allowing regular increases commensuratewith increases in the cost of living.

As an index provider, FTSE Russell aims to offer a transparent rule set that upholds the purity of a global infrastructure investment
with low stock concentration, geographic and sector diversification, low beta and relatively low correlation to global equities.
Mindful of the characteristics of the asset class, the index objectives and the recent compositional changes described below, FTSE
Russell would like the view of index users on whether the following methodology changes are necessary and appropriate:-

Adjusting the capping methodology with a view to improving index diversification across the opportunity set of infrastructure
sectors,-

Modifying the liquidity thresholds, and-Addressing any perceived concentration risk between Developed and Emerging Markets.

FTSE Russell

4Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

Responding to the consultation
The proposals set out in this consultation document are included in order to gather feedback and may or may
not result in changes to our indexes or data solutions.
Index users and other stakeholders are invited to respond by Tuesday 31 October 2023. The responses will be
reviewed by the FTSE Russell Product Governance Board and an update on FTSE Russell’s proposed
approach will be communicated by via a client notice.
Please submit your response to the questions included in this consultation online athttps://www.surveymonkey.co.uk/r/Z2XVZ2P
All responses will be treated as confidential. FTSE Russell may publish a summary of the consultation results,
but no individual responses will be published and no respondents will be named.
If you have any questions about this survey, or if you encounter any technical issues, please contact
committeesecretary@ftserussell.com.

Simulated Results
To assist in answering the consultation questions below, some of the simulated results, assuming adoption of the potential
methodology enhancements, have been included as Appendix I, II and III.

Primary areas considered for index methodology enhancement
The FTSE Global Core Infrastructure 50/50 Index was launched March 2015 and applies sector weight targets to the uncapped
FTSE Global Core Infrastructure Index, which was launched March 2011. Market cap weighted or the uncapped weighting iseffective in most cases for representing the overall opportunity set of an asset class, for global infrastructure it resulted in distortions
for a balanced allocation. This included a high regional weight of North America and low weighting of transportation sector. The
50/50 index addressed these distortions through capping and is the main distinction compared to the FTSE Global Core
Infrastructure Index. It should be noted that the proposed changes will result in further deviation through caping of emerging market
weight and a higher liquidity threshold.
The aim of the FTSE Global Core Infrastructure 50/50 Index is to give participants an industry-defined interpretation of infrastructure,
but to adjust the exposure to certain infrastructure sub-sectors. The constituent weights for these indices are adjusted as part of thesemi-annual review according to three broad industry sectors – 50% Utilities, 30% Transportation including 7.5% forRailroads/Railways and a 20% mix of other sectors including Pipelines, Satellites, and Telecommunication towers. Company
weights within each group are adjusted in proportion to their investable market capitalisation.
The FTSE Global Core Infrastructure 50/50 Index market composition has evolved, especially in recent years, with thereclassification of Russia from an Emerging Market to Unclassified. This has resulted in an increase in the weights of other emerging
countries such as India, China, and Mexico. Additionally, due to the cap on certain sectors pushing down the weights of developed
countries like Canada, Australia, Japan, and the UK, Railroads has been notably impacted. In addition to addressing emerging
countries and sector concentration, FTSE Russell also proposes the implementation of an additional liquidity screen to promote
investability across the index.

FTSE Russell

5Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

Potential index methodology enhancements and consultation questions
1.

Increase Railroads and Travel & Tourism subsector weight target from 7.5% to 12.5%.

Rational: The sector targets on two, rather than more, sectors, emanates from the original index design. The proposal is to retain
the limit to these two sectors only, and to suggest an increase from 7.5% to 12.5%, based on two primary considerations:-

Client feedback to date has been supportive of limiting the capping to as few ICB subsectors as possible, but with generalagreement that the capping of Railroads and Travel & Tourism is reasonable, and-Changes to the methodology should be minimized to preserve the relevance of the historical performance and minimize
turnover.

Due to the weight target/capping of the Industry Classification Benchmark (ICB) subsectors Railroads and Travel & Tourism at 7.5%
- the Railroads sector is reduced significantly to 7.30% compared to an exposure of 18.29% in the FTSE Global Core Infrastructure
Index. Consequently, the Transportation Services sector has been upweighted to 22.76% compared to 5.67% in the FTSE Global
Core Infrastructure Index. The tables below provide further details of the high-level weight target approach and the comparative
weights of all qualifying ICB infrastructure subsectors.

ICB SUBSECTOR

CODE

Current Weight
TargetProposed Weight
Target

50%

50%

30%

30%

22.5%

17.5%

7.5%

12.5%

20%

20%

Utilities
Alternative Electricity*

65101010

Conventional Electricity

65101015

Gas Distribution

65102020

Multi-utilities

65102000

Water

65102030

Transportation
Construction

50101010

Transportation Services

50206060

Railroads

50206020

Travel & Tourism

40501015

OthersInfrastructure REITs

35102025

Pipelines

60101035

Telecommunications Equipment

15101010

Telecommunications Services

15102015*Eligible from the September 2023 index review: getnotice (ftserussell.com)

FTSE Russell

6Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

ICB Subsector Breakdown – FTSE Global Core Infrastructure 50/50
FTSE Global CoreFTSE Global Core

Infrastructure 50/50

Infrastructure

No. ofNo. of

Cons

Wgt %

Cons

Wgt %

Diff %

Telecommunications Equipment

7

0.35

7

0.41

-0.06

15102015

Telecommunications Services

13

1.72

13

2.02

-0.30

35102025

Infrastructure REITs

5

5.87

5

6.88

-1.02

40501015

Travel and Tourism

1

0.02

1

0.05

-0.03

50101010

Construction

1

0.36

1

0.09

0.27

50206020

Railroads

15

7.57

15

18.87

-11.2950206060

Transportation Services

57

22.62

57

5.60

17.02

60101035

Pipelines

11

10.97

11

12.88

-1.90

65101015

Conventional Electricity

68

33.31

68

35.39

-2.08

65102000

Multi-utilities

13

10.12

13

10.47

-0.35

65102020

Gas Distribution

30

3.99

30

4.14

-0.14

65102030

Water

22

3.09

22

3.19

-0.11

243

100.00243

100.00ICB Code

ICB Subsector

15101010

Totals
Source: FTSE Russell, data as of June 30, 2023.

Questions1.

Are you supportive of limiting the capping to as few ICB subsectors as possible, thus enabling the index to reflect
more dynamically the make-up of the infrastructure opportunity set?
☐

Yes

☐

No

Please enter your comments here:

FTSE Russell

7Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

2.

Given the mismatch between the ICB subsector exposures for Railroads and Travel & Tourism depicted above, do
you have any objections to increasing the weight target from 7.5% to 12.5%?

☐

Yes

☐

No

Please enter your comments here:

3.

Do you have any other comments/concerns about the sector make-up of FTSE Global Core Infrastructure 50/50
Index?

Please enter your comments here:

2. Require a US$ 5 million Average Daily Trading Volume (ADTV) minimum for eligible constituents
Rational: The required replicability and tradability of the index is established through the application of an appropriate liquidity
threshold at the stock level. Recent constituent evolution is seen to have reduced the overall liquidity of the index. FTSE Russell has
run simulations to determine whether the current threshold should be increased to improve the liquidity of the index.
The 50/50 capping limitations inherent in the index design triggers the upweighting of several less-liquid constituents. Feedback hassuggested that this has made the index increasing difficult to replicate.
Initial testing was based on an ADTV of US$1mn, measured over 252 days. The aim of keeping the threshold relatively low was tomaximize the investment opportunity set and minimizing tracking error against the current benchmark. However, a US$1mn
threshold did not sufficiently limit the inclusion of low liquidity stocks. Other thresholds were investigated, with an ADTV of US$5mn
appearing the best compromise level, with testing showing the resulting universe had a lower tracking error against the current
benchmark, over most periods.

FTSE Russell

8Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

FTSE Global
Core
Infrastructure
Index %FTSE Global
Core
Infrastructure
50/50

FTSE Global
Core
Infrastructure
50/50 Index(1 million USD
minimum 252days ADTV and
10% Emerging
cap)

237

237

214

ConstituentsFTSE Global
Core
Infrastructure
50/50 Index(5 million USD
minimum 252days ADTV and
10% Emerging
cap)

FTSE Global
Core
Infrastructure
50/50 Index(5 million USD
minimum 252days ADTV, 10%
Emerging cap,
Railroads andTravel & Tourism
12.5%)

174

174

Source: FTSE Russell, data as of July 29, 2022.

Impact Analysis of the Potential Methodology Enhancement – Simulation Results
Index

1Y

*3Y

**5Y

**10Y

Since
16/03/2012

FTSE Global Infrastructure 50/50 Index (1 mn 252-d ADTV)

2.9

2.8

2.5

2.2

2.5

FTSE Global Core Infrastructure 50/50 Index (5mn 252-d ADTV,
10% EM cap, Railroads and Travel & Tourism 12.5%)

2.0

2.1

1.8

1.6

1.8

FTSE Global Infrastructure 50/50 Index (10% EM cap)

2.9

2.9

2.5

2.2

2.5

FTSE Global Infrastructure 50/50 Index

3.0

2.8

2.5

2.2

2.5

Questions
4.

Are you supportive of increasing the liquidity threshold to ensure the replicability and tradability of the index ismaintained?
☐

Yes

☐

No

Please enter your comments here:

FTSE Russell

9Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

5.

Do you agree that that US$ 5 million Average Daily Trading Volume (ADTV) minimum is reasonable to assess theeligibility of constituents, or do you believe that another threshold is more reasonably justified?
☐

Yes

☐

No

Please enter your comments here:

6.

Do you have any other comments/concerns about applying a revised liquidity threshold to the FTSE Global Core
Infrastructure 50/50 Index?
Please enter your comments here:

3. Apply a 10% cap on Emerging Markets weight
Rational: Since the inception of the FTSE Global Core Infrastructure 50/50 Index, the exposure to Emerging Market stocks within
the index has typically been more than twice the weight of that in the FTSE Global Core Infrastructure Index, as shown in the tablebelow. This has resulted in comparatively higher volatility, due to greater exposure to Emerging Market stocks as well as Emerging
Market currencies versus the base currency of benchmark.
Emerging weight comparison – FTSE Global Core Infrastructure 50/50 Index vs. FTSE Global Core Infrastructure (uncapped) Index– as of end of October 2015 vs. end of July 2023.

July 2023

Sum of %Wt FTSE Global Core Infrastructure
50/50 Index

Sum of %Wt FTSE Global Core Infrastructure
Index

Developed

83%

92%

Emerging

17%

8%

Sum of %Wt FTSE Global Core Infrastructure
50/50 Index

Sum of %Wt FTSE Global Core Infrastructure
Index

Developed

89%

95%

Emerging

11%5%

October 2015

FTSE Russell

10Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

FTSE Russell has received recent feedback that the continued growth in Emerging Market exposure, as a proportion of the index, isconcerning, and that a cap should be set that results in the index having a more representative weight for these developing
economies.
It should be noted that the potential rule changes suggested in sections 1 and 2 above, do not act to materially reduce the deviation
between the Emerging Market weights of FGCIICU versus FGCII.
Several prospective caps were investigated, including a 10%, 12% and 14% cap applied to the Emerging Market component. Whenrunning historic simulations, the 10% cap, which is closest to the underlying Emerging Markets weight, in conjunction with US$5m
liquidity threshold and 12.5% capping on the Railroads and Travel & Tourism ICB subsectors, is seen to have the lowest tracking
error.
Questions
7.

Are you supportive of applying a cap to ensure the Emerging Market exposure within FGCIICU, more appropriatelyreflects the underlying exposure of these developing economies?
☐

Yes

☐

No

Please enter your comments here:

8.

Do you agree that 10% is an appropriate cap or do you believe that another cap value is more reasonably justified?
☐

Yes

☐

No

Please enter your comments here:

FTSE Russell

11Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

9.

Do you have any other comments/concerns about the Developed/Emerging Market mix within the FTSE Global
Core Infrastructure 50/50 Index?
Please enter your comments here:

FTSE Russell

12Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

Appendix I
Impact Analysis of the Potential Methodology Enhancement
Simulation Results
Sum of %Wt FTSE Global Core
Infrastructure 50/50 Index (5 million
USD minimum 252-days ADTV,
10% Emerging cap, Railroads andSum of %Wt FTSE Global Core

Sum of %Wt FTSE Global

Travel & Tourism 12.5%)

Infrastructure 50/50 Index

Core Infrastructure Index

Developed

90%

84%

93%

Emerging

10%

16%

7%

Data as at: 31 October 2022

Cumulative Performance – Total Return (USD)

Cumulative Return (%)
Since
Index

1M

3M

6M

YTD

1Y

3Y

5Y

10Y

16/03/2012

FTSE Global Core

3.5

-10.1

-9.1

-9.0

-5.5

5.2

27.4

106.0

119.4

3.4

-10.0

-9.4

-9.3

-5.8

4.5

24.6

105.7

119.0

3.0

-10.9

-9.4

-10.7

-7.3

7.9

31.7

116.9

129.6

Infrastructure 50/50 Index (5million USD minimum 252days ADTV,FTSE Global Core
Infrastructure 50/50 Index
FTSE Global Core
Infrastructure Index

FTSE Russell

13Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

Year-on-Year Performance – Total Return (USD)
Year-on-Year Return (%)
Index

2021

2020

2019

2018

2017

2016

2015

2014

2013

FTSE Global Core
Infrastructure 50/50 Index (5million USD minimum 252days ADTV,

15.5

-3.0

26.9

-2.1

18.1

12.4

-9.2

16.1

14.6

FTSE Global Core
Infrastructure 50/50 Index

15.7

-3.3

26.1

-3.2

19.3

11.8

-8.0

16.2

14.3

FTSE Global Core
Infrastructure Index

17.8

-0.7

26.3

-0.9

16.9

13.1

-10.6

18.9

17.1

Annualised Performance and Volatility – Total Return (USD)

Data as at: 31 October 2022

Annualised Return (%)

Volatility (%pa)

Index

1Y

3Y

5Y

10Y

Since
16/03/2012

1Y

*3Y

**5Y

**10Y

Since
16/03/2012

FTSE Global Core
Infrastructure 50/50
Index (5 million USD
minimum 252-days
ADTV,

-5.5

1.7

5.0

7.5

7.4

14.9

19.6

15.3

12.8

13.4

FTSE Global Core
Infrastructure 50/50
Index

-5.8

1.5

4.5

7.5

7.4

14.4

19.3

15.1

12.8

13.1

FTSE Global Core
Infrastructure Index

-7.3

2.6

5.7

8.0

7.9

15.6

19.3

14.9

12.5

13.5

* Based on weekly data ** Based on monthly data

Return/Risk Ratio and Drawdown – Total Return (USD)
Return/Risk Ratio

Drawdown (%)

Index

1Y

*3Y

**5Y

**10Y

Since
16/03/2012

1Y

3Y

5Y

10Y

Since
16/03/2012

FTSE Global Core
Infrastructure 50/50
Index (5 million USD
minimum 252-days
ADTV,

-0.4

0.1

0.3

0.6

0.6

-20.4

-36.7

-36.7

-36.7

-36.7

FTSE Global Core
Infrastructure 50/50
Index

-0.4

0.1

0.3

0.6

0.6

-20.4

-36.8

-36.8

-36.8

-36.8

FTSE Global Core
Infrastructure Index

-0.5

0.1

0.4

0.6

0.6

-20.6

-35.3

-35.3

-35.3

-35.3

* Based on weekly data ** Based on monthly data

FTSE Russell

14Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

Relative Return Characteristics – Total Return (USD) Data as at: 31 October 2022
Tracking Error (%pa)

Information Ratio

Index

1Y

*3Y

**5Y

**10Y

Since
16/03/2012

1Y

*3Y

**5Y

**10Y

Since
16/03/2012

FTSE Global Core
Infrastructure 50/50
Index (5 million USD
minimum 252-days
ADTV,

2.0

2.1

1.8

1.6

1.8

1.0

-0.4

-0.4

-0.3

-0.2

FTSE Global Core
Infrastructure 50/50
Index

3.2

2.8

2.5

2.2

2.5

0.5

-0.4

-0.4

-0.2

-0.2

* Based on weekly data ** Based on monthly data

Beta

Correlation

Index

1Y

*3Y

**5Y

**10Y

Since
16/03/2012

1Y

*3Y

**5Y

**10Y

Since
16/03/2012

FTSE Global Core
Infrastructure 50/50
Index (5 million USD
minimum 252-days
ADTV,

0.9

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

FTSE Global Core
Infrastructure 50/50
Index

0.9

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

* Based on weekly data ** Based on monthly data
FTSE Global Core Infrastructure Index is used as the benchmark for relative return analysis

FTSE Russell

15

Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

Appendix II
Weight by ICB Subsector

Count by ICB Subsector

FTSE Russell

16Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

Appendix III
Constituent Analysis
10. The application of the additional proposed rules deletes 74 holdings, leaving 169 constituents (from 243 constituents)
based on analysis as of October 2022.

Snapshot of largest 20 constituents in the simulated index

SEDOL

Constituent NameCountry

Difference

Weight in FTSE
Global Core
Infrastructure
50/50 Index(5 million USD
minimum 252-days
ADTV, 10%Emerging cap,
Railroads andTravel & Tourism
12.5%) %2328915

NextEra Energy Inc

USA

-0.08

4.90

4.97

6.48

6200882

Transurban Group

Australia

-0.25

4.55

4.81

1.11

2914734

Union Pacific Corp

USA

1.48

3.62

2.15

5.27

B7FBFL2

American Tower
Corp

USA

0.07

3.44

3.36

4.09

B7VD3F2

Duke Energy Corp

USA

0.07

3.04

2.97

3.05

2829601

Southern Co

USA

0.07

2.95

2.88

2.96

2466149

Enbridge

Canada

0.06

2.82

2.76

3.35

2542049

Dominion Energy

USA

0.06

2.47

2.41

2.48

2180632

Canadian National
Railway

Canada

0.87

2.13

1.26

3.09

7667163

Atlantia

Italy

-0.12

2.09

2.21

0.51

BTGQCX1

Crown Castle Inc

USA

0.04

2.05

2.01

2.45

2793115

Canadian Pacific
Railway

Canada

0.83

2.02

1.20

2.94

2138158

Sempra

USA

0.05

2.01

1.97

2.02

2026242

American Elec
Power Com

USA

0.04

1.92

1.87

1.92

2160753

CSX Corp

USA

0.74

1.82

1.08

2.65

BDFLHW9

Airports of Thailand

Thailand

0.20

1.74

1.54

0.35

BDR05C0National Grid

UnitedKingdom

0.04

1.69

1.65

1.69

BJMY6G0

TC Energy

Canada

0.03

1.58

1.55

1.89

2654364

Cheniere Energy

USA

0.03

1.57

1.53

1.87

2641894

Norfolk Sthn Corp

USA

0.64

1.56

0.93

2.27

FTSE Russell

Weight in
FTSE Global
Core
Infrastructure
50/50 Index %Weight in
FTSE Global
Core
Infrastructure
Index %

17

Potential Enhancements to the FTSE Global Core Infrastructure 50/50 Index

Two-way Turnover (%)
11. One time two-way turnover equal is estimated at 15.75% for the aggregate impact of the proposed enhancement.
12. Two-way turnover increases on average 1.89% at semi-annual reviews in March and September over the full period
examined, since September 2012 through September 2022.

FTSE Global Core
Infrastructure 50/50 Index (5million USD minimum 252days ADTV, 10% Emerging
cap, Railroads and Travel &Tourism 12.5%)

FTSE Global Core
Infrastructure 50/50 Index

FTSE Global Core
Infrastructure Index

24/09/2012

11.91

0.40

0.36

18/03/2013

12.38

10.85

8.68

23/09/2013

5.84

0.34

0.41

24/03/2014

15.83

14.69

10.20

22/09/2014

9.62

7.25

2.30

23/03/2015

13.91

16.34

4.60

21/09/2015

9.81

8.97

2.77

21/03/2016

26.01

22.78

17.23

19/09/2016

12.86

10.23

4.87

20/03/2017

6.27

4.07

1.35

18/09/2017

6.60

5.54

0.41

19/03/2018

5.59

7.61

0.77

24/09/2018

11.00

10.89

2.59

18/03/2019

3.86

1.92

0.90

23/09/2019

4.81

4.03

1.51

23/03/2020

9.29

10.39

2.34

21/09/2020

10.23

6.33

1.94

22/03/2021

4.95

4.98

0.88

20/09/2021

10.10

8.93

2.15

21/03/2022

4.36

5.66

2.13

19/09/2022

9.89

3.13

0.82

Average

9.77

7.87

3.30

Date

FTSE Russell

18

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FTSE International Limited is authorised and regulated by the Financial Conduct Authority as a benchmark administrator.
All information is provided for information purposes only. All information and data contained in this publication is obtained by the LSE Group, from sources believed by it to be accurate
and reliable. Because of the possibility of human and mechanical error as well as other factors, however, such information and data is provided “as is” without warranty of any kind. No
member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly, or
impliedly, either as to the accuracy, timeliness, completeness, merchantability of any information or of results to be obtained from the use of FTSE Russell products, including but notlimited to indexes, data and analytics, or the fitness or suitability of the FTSE Russell products for any particular purpose to which they might be put. Any representation of historical
data accessible through FTSE Russell products is provided for information purposes only and is not a reliable indicator of future performance.
No responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for (a) any loss or damage inwhole or in part caused by, resulting from, or relating to any error (negligent or otherwise) or other circumstance involved in procuring, collecting, compiling, interpreting, analysing,editing, transcribing, transmitting, communicating, or delivering any such information or data or from use of this document or links to this document or (b) any direct, indirect, special,consequential or incidental damages whatsoever, even if any member of the LSE Group is advised in advance of the possibility of such damages, resulting from the use of, or inability
to use, such information.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this document should be taken as
constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding
the advisability of investing in any asset or whether such investment creates any legal or compliance risks for the investor. A decision to invest in any such asset should not be made inreliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset nor confirmation thatany particular investor may lawfully buy, sell or hold the asset or an index containing the asset. The general information contained in this publication should not be acted upon withoutobtaining specific legal, tax, and investment advice from a licensed professional.
The information contained in this report should not be considered “research” as defined in recital 28 of the Commission Delegated Directive (EU) 2017/593 of 7 April 2016supplementing Directive 2014/65/EU of the European Parliament and of the Council (“MiFID II”) and is provided for no fee.
Past performance is no guarantee of future results. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual
trading of investable assets. Certain returns shown may reflect back-tested performance. All performance presented prior to the index inception date is back-tested performance.
Back-tested performance is not actual performance, but is hypothetical. The back-test calculations are based on the same methodology that was in effect when the index was officiallylaunched. However, back-tested data may reflect the application of the index methodology with the benefit of hindsight, and the historic calculations of an index may change frommonth to month based on revisions to the underlying economic data used in the calculation of the index.
This document may contain forward-looking assessments. These are based upon a number of assumptions concerning future conditions that ultimately may prove to be inaccurate.
Such forward-looking assessments are subject to risks and uncertainties and may be affected by various factors that may cause actual results to differ materially. No member of the
LSE Group nor their licensors assume any duty to and do not undertake to update forward-looking assessments.
No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise,
without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group data requires a licence from FTSE, Russell, FTSE Canada, FTSE
FI, FTSE FI Europe, YB, BR and/or their respective licensors.