In an age of multinational companies and multinational listings, the factors affecting the determination of the nationality of companies for inclusion in indices have become more complex. For the investment community, nationality is, and is likely to remain, a significant factor in decisions around how assets are invested.
FTSE recognises the importance of having a transparent, objective and consistent approach for determining the nationality of companies included in FTSE indexes. The rules were developed in conjunction with input received from a wide variety of market participants.
The FTSE Determining Nationality paper can be viewed here.
For more information on FTSE's approach to nationality within the FTSE Global Equity Index Series and the FTSE UK Index Series, please refer to the relevant section within the respective series' index rules. The rules can be downloaded from the following web page: