Index provider FTSE announced the launch of the FTSE Infrastructure Index (FII) series - a set of nine indices diversified across six infrastructure sub-sectors that will provide investors with balanced exposure to global infrastructure.
The new index series enables investors to research, benchmark and gain exposure to both physical infrastructure assets and the networks, support and conveyance services that underpin global infrastructure development.
The FII series provides investors with balanced exposure to the asset class whilst reducing the risk of over-concentration in individual sectors. The index series incorporates both core infrastructure companies, those that derive over 65% of their revenue from infrastructure and also infrastructure related opportunities - companies that derive over 20% of their revenue from infrastructure.
FTSE said this offers investors the flexibility to tailor exposure in accordance with investment objectives and risk appetites.
The six infrastructure sub-sectors in the FII series include Telecommunications Core Infrastructure and Energy Core Infrastructure. The series captures the performance of more than 800 stocks from over 40 developed and emerging markets. Constituents are screened according to FTSE’s definition of infrastructure and selected from relevant ICB subsectors within the FTSE All-Cap Index. This selection aims to provide diversification and a comprehensive representation of the performance of global infrastructure assets.
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