Media Information

Embargoed until 1045 on Tuesday 27 February 2001

FTSE develops standard for socially responsible investment

London, 27 February 2001 - FTSE announces today an innovative new family of indices named FTSE4Good, designed to be a first step towards setting a global standard in the fast growing area of socially responsible investment (SRI). FTSE4Good aims to increase awareness and acceptance of SRI amongst the international business community, and will also generate significant funds for UNICEF.

Developed in association with EIRIS (the Ethical Investment Research Service), FTSE4Good is a series of indices, consisting of both a tradable and a benchmark index for each of the following four regions: UK, Europe, US and Global. The overarching SRI principles and constituent selection criteria are being defined by an expert committee and have been researched by FTSE and EIRIS. Operating within a defined framework of best practice, each company must meet the FTSE4Good SRI selection criteria to be included in the indices. It is anticipated that a limited number of companies may be excluded from the indices based on their sector activities.

Research to date suggests that over 50% of the constituents for each region may fail to be included in the FTSE4Good indices. FTSE believes this is partly due to a lack of publicly available SRI information on company performance. FTSE and EIRIS are working with companies to enhance the availability of SRI information. FTSE and the expert committee will also seek views on the draft selection criteria prior to the final criteria and constituent lists being published. The FTSE4Good indices are expected to go live in June 2001.

Close Fund Management will launch the official funds for the FTSE4Good indices, available to both retail and institutional investors. The first in the series will track the FTSE4Good UK index. All licensing fees from the fund will be donated to UNICEF.

Mark Makepeace, FTSE Chief Executive said: "FTSE4Good represents an aspirational framework for change. We want it to be a step towards encouraging companies to adopt socially responsible principles."

David Bull, Executive Director of UNICEF UK added: "With the announcement of the FTSE4Good indices, FTSE is advancing the debate on socially responsible investment and encouraging good corporate practice. In the context of the Global Movement for Children, UNICEF urges companies to play their part, alongside Governments and NGOs in building a world fit for children. FTSE's contribution to UNICEF's work will make a significant difference to children's lives".

Peter Webster, Executive Director of EIRIS commented, "Following the pensions disclosure regulation last July, many fund managers are developing their SRI capabilities. The FTSE4Good indices are another indication that the investment community is starting to integrate these issues into their thinking."

Marc Gordon, Managing Director of Close Fund Management, commented: "We are delighted to be managing the FTSE4Good Funds with FTSE in support of UNICEF in an initiative which we believe will bring SRI into the mainstream market."

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More information:
Sandra Steel, FTSE +44 (0) 20 7448 1821
Kathryn Irwin, UNICEF + 44 (0) 20 7312 7669
Karen Eldridge, EIRIS + 44 (0) 20 7840 5701
Marc Gordon, Close FM +44 (0) 20 7426 4023

 

Notes to Editors
About FTSE

FTSE is one of the world's leading experts in the creation and management of equity indexes and is jointly owned by the London Stock Exchange and the Financial Times. With offices in London, New York, Paris, Frankfurt and Hong Kong. FTSE services clients in 77 countries worldwide. It manages and develops globally recognised indices ranging from the FTSE All-World Index to the real time FTSE Eurotop series and the FTSE 100. The company has collaborative arrangements with the London, Amsterdam, Athens, Brussels, Cyprus, Euronext, Luxembourg, Madrid, and Norex stock exchanges, as well as with Nikkei of Japan (Nihon Keizai Shimbun, Inc).

FTSE indices are used extensively by investors world-wide for investment analysis, performance measurement, asset allocation and for creating a wide range of index tracking funds. Committees of senior fund managers, derivatives experts, actuaries and experienced practitioners independently review all changes to the indexes ensuring that they are accurate, timely and without bias. Real time FTSE indices are calculated on systems managed by Reuters. Prices and FX rates used are supplied by Reuters.

About UNICEF
UNICEF, the United Nations Children's Fund, is the largest organisation in the world dedicated to improving the lives of children, their families and communities.
The UN Convention on the Rights of the Child - which sets out the right of all children to reach their full potential - is the foundation of all our work. UNICEF works in over 160 countries and territories to fulfil children's rights to health and nutrition; education; emergency relief; protection; and water and sanitation. By working in partnership with others, from governments and teachers to youth groups and mothers, UNICEF is a driving force for people throughout the world working to ensure a better future for children.
UNICEF is unique within the United Nations family in that it receives no statutory UN funding - it is funded entirely by voluntary contributions from governments, the public and greeting card sales. UNICEF UK is one of 37 national Committees supporting the work of UNICEF.
About EIRIS

EIRIS is the UK's leading independent provider of research into the social, environmental and ethical performance of companies. The Ethical Investment Research Service (EIRIS), a charity, was set up in 1983 to help churches and charities implement ethical investment policies. EIRIS Services Ltd, the charity's subsidiary, undertakes the research and provision of services to clients, including Ethical Portfolio Manager, EIRIS's ethical investment research software.

Close Fund Management
Close Fund Management is the specialist fund management subsidiary of Close Brothers Group PLC, now the UK's largest independent quoted Merchant Bank and among the 250 largest companies listed on the London Stock Exchange. The Group, which is over 130 years old, has grown significantly in the last 25 years and includes a number of early leading financial services companies. Close Fund Management was founded in late 1995 to provide specialist investment management services to the retail and institutional market.

Close Fund Management manages over £600m, including the successful range of Escalator funds - the widest range of protected unit trusts in the market. It has worked with FTSE on four previous fund launches - The FTSE Techmark Fund, The FTSE Euro eTX Fund and two index-tracking split capital funds - the innovative Close FTSE 100 Investment Trust and the Close FTSE 100 Income and Growth Fund.