FTSE to Launch Hedge Fund Index in April

February 04, 2004

Another high profile provider to introduce hedge fund index.

London/San Francisco - February 4, 2004.     Index provider FTSE Group said it will launch an index of hedge funds, named FTSE Hedge, in April 2004. FTSE said the index is designed to bring increased clarity to this asset class, and will allow investors to more easily understand and follow the performance of hedge funds. FTSE said it will license fund managers to create funds based on the index, which will also be available in April.

FTSE Hedge will be calculated on a daily basis and will comprise a global index of 40 Hedge Funds, with a range of sub indices covering the major hedge fund strategies.  FTSE Hedge has been designed to accurately reflect the investable opportunity for investors across all hedge funds.  FTSE Group imposes strict eligibility criteria on the constituent hedge funds in FTSE Hedge. Only open hedge funds with a proven 2-year track record and strict external audits are included in the index. The independent hedge fund consultant, Harcourt Investment Consulting AG, will perform due diligence tests for each constituent hedge fund.

"FTSE Hedge will bring greater clarity and transparency to the hedge fund market.  It will help investors understand and analyse hedge funds and their performance with much greater confidence," said Mark Makepeace, Chief Executive of FTSE Group.

 

S&P and MSCI also calculate hedge fund indexes, while Morningstar recently announced it would introduce a new hedge fund database to bring more transparency to the industry.

The list of constituent hedge funds to be included in FTSE Hedge will be available in April when the index is introduced.  More details about the index structure and methodology can be accessed at www.ftse.com/hedge.

 

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