CalPERS Adopts FTSE as International Benchmark

January 25, 2001 ( - The $177 billion California Public Employee Retirement System intends to adopt the FTSE All-World Index, with some minor changes, as its benchmark of choice, according to FTSE, Inc.

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 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.