Doha: Global index provider FTSE Russell will include QLM Life & Medical Insurance Company (QLM) under its Micro Cap category. FTSE Russell published yesterday the results of its Global Equity Index Series June 2021 Quarterly Review. The changes will be effective on June 17, according to the statement posted on Qatar Stock Exchange (QSE) website.
Earlier this month, another global index compiler, Morgan Stanley Capital International had announced to include Qatari Investors Group (QIG) as a constituent of its MSCI Qatar Small Cap Index. Inclusion of Qatari companies in these global indices shows the growing trust of investors.
“FTSE announced the results of its June 2021 Quarterly Index Review. For the Micro Cap segment, QLM (Qatari listed company) will be added to the Index and the changes will be effective at the close of 17 June,” said QSE’s Chief Executive Officer, Rashid bin Ali Al Mansoori, said in a tweet yesterday.
Inclusion of companies to these global indices helps in boosting inflow of foreign funds and companies usually witness significant activity on their shares.
The FTSE Global Equity Index Series covers securities in 49 different countries and is divided into Developed, Advanced Emerging and Secondary Emerging segments. The series represents the broadest global equity universe, targeting coverage of over 99 percent of investable market cap globally. Over $1.7 trillion in assets under management are benchmarked to a FTSE GEIS index, with $1.4 trillion tracking a FTSE GEIS index passively via index-linked investment products.
The companies’ inclusion and reclassification in global indices are subject to various criteria, the most important of which are the size of the company’s investable capital and market capitalization, liquidity and turnover rates.
Periodic index reviews, including companies’ reclassifications, additions and deletions, carried out by international index providers are among the main factors influencing the investment appetite of international investors and portfolio managers.
