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Composition of the F.T.-Actuaries Share Indices

Published online by Cambridge University Press:  11 August 2014

Eric Short  and
John C. H. Brumwell
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Extract

1.1. The FT-Actuaries share indices have now been published for about 11 years and calculated for a rather longer period. They have become accepted as one of the standard measures of equity share price movements. They represent a valuable contribution by actuaries in the field of investment analysis, indeed Heywood (1) states that he considered them to be the best public relations exercise of the Institute. (We assume here that he meant profession).

1.2. Yet, there are a considerable number of actuaries and actuarial students who have no more than a vague knowledge of its working, while most laymen are completely baffled by the mathematics involved. Haycocks and Plymen (2), in an extremely comprehensive and often very elegant paper, described the basic construction of the indices. But because they were actuaries addressing other actuaries they naturally used algebraic formulae. This, in itself, automatically ensures that most laymen in the investment field do not read beyond page 1.

Type
Research Article
Information
Journal of the Staple Inn Actuarial Society , Volume 21 , Issue 1 , October 1974 , pp. 1 - 35
Copyright
Copyright © Institute of Actuaries Students' Society 1974

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References

BIBLIOGRAPHY

(1) Heywood, G., Presidential Address, J.I.A., 99, 1.Google Scholar
(2) Haycocks, H. W. and Plymen, J., ‘The Design, Application and Future Development of the Financial Times—Actuaries Index,’ J.I.A., 90, 267 Google Scholar
T.F.A., 28, 377.Google Scholar
(3) Marks, P. and Stuart, A. ‘An arithmetic version of the Financial Times Industrial Ordinary Share Index’, J.I.A., 97, 297.Google Scholar
(4) Plymen, J. ‘Classification of Stock Exchange Securities by Industry’, J.I.A., 97, 105 Google Scholar
T.F.A., 32, 418.Google Scholar
(5) Conlong, A. ‘The first eight years of the FT–Actuaries All-Share Index’, The Investment Analyst, 27, 3.Google Scholar
(6) The Institute of Chartered Accountants in England and Wales: Accounting for Corporation Tax under the Imputation System (September 1972).Google Scholar
(7) The Society of Investment Analysts: Recommendations and Comments on Earnings under the Imputation System (November 1972).Google Scholar
(8) Short, E., ‘Calculating Earnings—A new treatment is required’, Financial Times (16 December 1972)Google Scholar
‘The Changeover to Imputation Tax’, Financial Times (26 February 1973).Google Scholar
(9) Short, E., ‘Getting the best from the Share Indices’, Financial Times (28 November 1972).Google Scholar
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(11) Most recently expressed in several references and tables in the booklet by Hall, M. G. and Hobbs, D. H. S., Pension Fund Indicators (September 1973).Google Scholar
(12) Ferguson, J. L., ‘Some Aspects of Measuring Portfolio Performance’ (presented to the Students' Society, April 1972).Google Scholar