welcome

Welcome to the Q4 edition of FTSE Focus 2011

During the course of our conversations with asset owners and consultants around the world,
the area that currently sparks the most interest is our range of alternative weighted indices.
With the launch of the FTSE RAFI and FTSE GWA Index Series in 2005, FTSE was the first major
index provider to bring a variety of alternative weighted, or strategy indices to the market.

FTSE has seen this growing interest transform into the adoption of such benchmarks by some of the largest asset owners around the world. Interest is now growing in Asia Pacific with the Korean Investment Corporation, Australia’s Future Fund, and one of Taiwan’s largest pension funds, the Labour Pension Fund, making significant allocations to alternative weighted FTSE index-linked funds.

Interest in these new indices stems from
investors’ desire to achieve enhanced
diversification over the long-term. They are
also widely used to complement existing market
cap strategies, providing investors with a robust,
low-cost and transparent solution.

For clients who are interested in learning more about our alternative weighted indices, the FTSE Analytics team produces a FTSE Global Indices Monthly Overview. This report compares the performance of a number of index types employing different construction methodologies. Interestingly, over the five years to September 2011, risk based indices such as the FTSE EDHEC and FTSE DBI World Developed series have outperformed traditional value indices. If you would like to subscribe to the Monthly Overview, please visit http://www.ftse.com/Analytics/Indices/Research

Going forward, FTSE will remain at the forefront
of this investment segment, extending our
existing product range to offer our clients
more choice.

mark makepeace | chief executive | ftse group