CalPERS, the nation’s largest public pension system, previously used an MSCI benchmark.
CalPERS adopted the All-World Index with some minor changes that included the exclusion of tobacco stocks and US-based corporations, a FTSE official told PLANSPONSOR.com. The same official also said other “major North America plan sponsors” are also interested in adopting the FTSE All-World Index as their non-US Index.
Earlier, a major 401k provider in Hong Kong – the Hong Kong Monetary Authority – announced that it has also adopted the FTSE Index as its benchmark of choice.
An estimated $2.5 trillion globally is indexed to the FTSE.
FTSE is a separate entity charged with marketing the FTSE All-World Index, as well as its sub-index products, to clients worldwide. The Index was originally formed through the joint efforts of the London Stock Exchange and the Financial Times as a joint venture. Today, both companies are the parents of FTSE.