The investment indexing company FTSE
has decided to end its relationship with the Ethical Investment Research Service (Eiris
), the body that has provided research for its FTSE4Good
indexes over the past 12 years.
FTSE said the decision to end the partnership had been made ‘by mutual consent’ and that parting company with Eiris ‘is part of the natural evolution of the indexes that will take them through to the next level’.
It added that it will be developing a new methodology to underpin FTSE4Good and related products with details of the new approach ‘to be provided in due course’.
Eiris will stop collecting data for the FTSE4Good Indexes from 30 September 2013, but no announcement has been made about who will step into the breach. A FTSE spokeswoman said: ‘We will keep the market informed as and when everything is finalised, but no decision has been made as yet.’
FTSE has some time to find a suitable replacement, as much of the research for FTSE4Good is carried out around the indexes’ semi-annual reviews in March and September. The latest review has just been completed, which gives several months leeway.
Eiris has provided FTSE4Good with research data since the launch of the index series in 2001, either directly or through a network of partner research organisations. While the contract has been a prestigious one for Eiris and has helped it to win contracts to provide research for other index series and stock exchanges, it is not believed to have been a big money earner over the years.
There have been strong rumours on a number of occasions in recent years that the two London-based organisations were close to parting company. Around three years ago, FTSE is understood to have given Eiris private notice that it would be ending the agreement, only to change its mind and carry on with the contract.