FTSE to track UK Plc firms

Canary Wharf group pitches plan for shares list of companies who predominately operate in Britain

The FTSE Group is looking at introducing a stock index that would encourage fund managers to invest in companies that contribute heavily to the British economy.

The Canary Wharf-based provider of stock indices, which include the FTSE 100 and All-Share, is considering launching an index of firms that derive at least a significant minority of their work from the UK.

This would mean that big mining companies and eastern European ventures that have raised cash in London would be excluded, as most of their income comes from overseas. Parties that have pitched the idea, which the group is considering introducing in six-to-nine months, believe this would give a better picture of how the UK economy is performing.

It is also thought that fund managers would be tempted to raise vehicles that solely invest in the index. These "UK economy" funds would be popular among politicians looking to show the electorate that a successful UK PLC improves the nation's finances.

Although the index wouldn't replace the All-Share it would act as a "compliment", said an industry source. However, he added that he felt the FTSE should go further, only using the proportion of a company that actually operates in the UK.

He said: "The thing is, the FTSE 100 could be up, but this is so international that it might have nothing to do with how the UK is faring. It could simply be skewed by gold or oil prices being up, increasing the valuations of a few big multinationals."

The FTSE is unlikely to simply take a proportion of a company, as this could be potentially quite complicated. There could also be arguments over what does or doesn't constitute work within the UK's boundaries.

A FTSE source conceded that there had been "lots of interest in an index that has a broader coverage of – that is more aligned with – the UK economy". The source added that a final decision on pressing ahead with the index, a reasonably similar version of which FTSE has just introduced in the US, had not yet been made.

A FTSE spokeswoman said: "There is interest in this, but we haven't yet got any firm plans or time frames at the moment."

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Content Writer - Global Financial Services

£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...

Recruitment Genius: Web Developer - PHP

£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...

Recruitment Genius: Field Sales Consultant - Financial Services - OTE £65,000

£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Loan Underwriter

£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...

Day In a Page

Orthorexia nervosa: How becoming obsessed with healthy eating can lead to malnutrition

Orthorexia nervosa

How becoming obsessed with healthy eating can lead to malnutrition
Lady Chatterley is not obscene, says TV director

Lady Chatterley’s Lover

Director Jed Mercurio on why DH Lawrence's novel 'is not an obscene story'
Farmers in tropical forests are training ants to kill off bigger pests

Set a pest to catch a pest

Farmers in tropical forests are training ants to kill off bigger pests
Mexico: A culture that celebrates darkness as an essential part of life

The dark side of Mexico

A culture that celebrates darkness as an essential part of life
Being sexually assaulted was not your fault, Chrissie Hynde. Don't tell other victims it was theirs

Being sexually assaulted was not your fault, Chrissie Hynde

Please don't tell other victims it was theirs
A nap a day could save your life - and here's why

A nap a day could save your life

A midday nap is 'associated with reduced blood pressure'
If men are so obsessed by sex, why do they clam up when confronted with the grisly realities?

If men are so obsessed by sex...

...why do they clam up when confronted with the grisly realities?
The comedy titans of Avalon on their attempt to save BBC3

Jon Thoday and Richard Allen-Turner

The comedy titans of Avalon on their attempt to save BBC3
The bathing machine is back... but with a difference

Rolling in the deep

The bathing machine is back but with a difference
Part-privatised tests, new age limits, driverless cars: Tories plot motoring revolution

Conservatives plot a motoring revolution

Draft report reveals biggest reform to regulations since driving test introduced in 1935
The Silk Roads that trace civilisation: Long before the West rose to power, Asian pathways were connecting peoples and places

The Silk Roads that trace civilisation

Long before the West rose to power, Asian pathways were connecting peoples and places
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled

The honours that shame Britain

Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled
When it comes to street harassment, we need to talk about race

'When it comes to street harassment, we need to talk about race'

Why are black men living the stereotypes and why are we letting them get away with it?
International Tap Festival: Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic

International Tap Festival comes to the UK

Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic
War with Isis: Is Turkey's buffer zone in Syria a matter of self-defence – or just anti-Kurd?

Turkey's buffer zone in Syria: self-defence – or just anti-Kurd?

Ankara accused of exacerbating racial division by allowing Turkmen minority to cross the border