When a company becomes listed, index inclusion is a big deal. Beyond the stamp of approval, it brings in new passive investors, more liquidity, and ultimately more stability as a listed company. Yet, index inclusion rules are very technical, and not always easy to understand.

To open up the topic of equity indices, we have invited Mark Makepeace, the CEO of Wilshire Indexes. Mark built up and managed FTSE Russell from a small group that produced the UK equity benchmark FTSE 100, to one of the top 3 global equity index providers.

With Mark, we discuss what criteria index providers use to include companies, how this relates to the offer size and market capitalization of an IPO, how index rules have evolved to adapt to the market, and the evolution of index providers to also become ESG data providers.


🎧 Listen here:  Spotify  | Apple Podcasts  🎧


🗨️ Some of our favourite quotes from our discussion:
“Almost half of your shareholders will be influenced in some shape or form by the way the index provider treats you”
“if there is something that is unusual about the company, advisers will come and try to get clarification of the index rules”
“the index provider has an obligation to ensure that those forced buyers can actually become shareholders”


Disclaimer: this discussion is not financial advice, nor an investment recommendation, nor a solicitation to buy or sell any financial instruments, or an offer for financial services or any other transaction. The information contained in the recording have no contractual value and are destined for an informational purpose only. Amundsen Investment Management and the participants on this podcast may have holdings in the companies being discussed.