FTSE4Good Indexes Had Good October

November 1, 2002 (PLANSPONSOR.com) - Things were looking up for the FTSE4Good equity benchmark indices in October, FTSE announced.

The FTSE4Good Global Index rose by 9.8% over the month, a 2.8% increase over the performance of the FTSE World Index, and this was repeated across the other three FTSE4Good indices, FTSE said.

Also in October, FTSE4Good USA index was up 10.3%, Europe up 11.5% and the UK up 8.5%, according to FTSE data.

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Among the individual good performers during the month, telecom equipment manufacturers had an excellent showing, with Nortel, Ericsson and Alcatel all more than doubling. Nortel announced the signing of a $280-million digital wireless contract in China.

FTSE data showed that the top-five individual stocks in the Global Index with their October performance included:

  • Nortel Networks, 143.7%
  • LM Ericsson, 122.2%
  • Alcatel, 114.9%
  • Tellabs Inc, 88.7%
  • Sprint Corp (PCS Group), 77.6%.

However, in the worst-performing category, Spirent and ABB lost over half their value, on a profit warning and claims over asbestosis respectively.

The five worst Global Index performers and their October figures included:

  • Spirent PLC, -65,4%
  • ABB Ltd, -59.6%
  • ARM Holdings PLC,-54.7%
  • CIGNA Corp, -48.9%
  • Tenet Healthcare, -41.9%.

Top US October Performers

The top October performers in the FTSE4Good US index included, in addition to Tellabs Inc., and Sprint Corp.:

  • AT&T Wireless, 66.8%
  • Lucent Technologies, 61.8%
  • Yahoo! Inc., 55.9%

FTSE also announced that it has completed its market consultation exercise regarding environmental criteria.

As a result, all FTSE4Good companies now have an environmental rating of high, medium, or low.

From March 2003, existing medium and low constituents must have a publicly available environmental policy, and

from September 2003, all medium companies must provide evidence of an environmental management system.

All prospective new entrants must meet the requirements of their rating from September 2002 onwards,

the FTSE announcement said.

FTSE4Good is an index series for socially responsible investment designed to facilitate investment in companies with good records of corporate social responsibility, FTSE said.