FTSE Multinationals Index Series

The FTSE Multinationals Index Series is a family of indexes that separates and measures the performance of multinational and local companies outside/inside the domestic region in which they are incorporated. The index series was developed by FTSE Russell in conjunction with Hewitt Bacon & Woodrow and Barclays Global Investors following an extensive research and consultation process to define a 'multinational' company. The underlying universe for the series is the FTSE Developed Index and the three domestic regions are defined as Americas, Asia/Pacific and Europe/Middle East/Africa.

Three key indexes have been designed based on this approach:

FTSE Multinationals Index

This index comprises companies which derive more than 30% of their revenue from outside their domestic region.

FTSE Global 100 Index

This index is formed of the top 100 constituents from the FTSE Multinationals Index.

Local Indexes

The remaining stocks (companies which receive 70% or more of their revenue from inside their domestic region) are classified as ‘local’ companies and form truly local indexes.

The index series provides market participants with a tool suitable to be used to identify and distinguish between companies exposed to local economic factors and those exposed to global economic factors.

Indexes within the series are suitable for use as benchmarks and as tools in the creation of financial products, such as index-linked funds, exchange traded funds (ETFs) and derivatives.