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The new FTSE-calculated UK Employee Ownership Index continues to out-perform the FTSE All Share. In the first nine months of 2013, the new 10% index has returned 42.3% compared to 14.6% for the FTSE All Share. Download a detailed [http://www.employeeownershipindex.co.uk/downloads/Performance_analysis_to_June_2013_v2_1.pdf performance analysis to June 2013].  
+
In 2015, the 3% index returned 26.4% compared to 0.8% for the FTSE All Share (total return version). This means the 3% index has out-performed the FTSE All Share in ten of the last thirteen years. The average annual margin of performance since the start of 2003 is +13.9%.
  
Over the last ten years, since the start of 2003, the new 10% index has out-performed the FTSE All Share over successive calendar years by on average 4.0% a year. Over the last 21 years, since the start of 1992, the original 10% index out-performed the FTSE All Share over successive calendar years by on average 9.4% a year. Further details are on the [[History]] page. There are two main reasons why the new FTSE-calculated 10% index appears not to have out-performed the FTSE All Share by the same margin as the original 10% index:
+
The 3% index includes all the companies in the 10% index together with companies estimated to be between 3% and 10% owned by employees (other than main board directors). Although a 3% threshold may seem low to create a discernible employee ownership effect, it is still a significant threshold for capital-intensive companies, and the culture of employee ownership may be just as strong in such companies. The 3% index contains a larger number of companies so is less susceptible to sector bias. For this reason, it may be of interest to investment managers who favour a diversified approach.
  
1. The time period over which we are now measuring performance has been truncated. Performance of the original 10% index was judged over 21 years – from 1992 to 2012 inclusive – whereas the performance of the new FTSE-calculated 10% index is (so far) being judged over 10 years, from 2003 to 2012 inclusive. The original 10% index performed more strongly in the 1990s than in the 2000s. In the first decade, the biggest sector represented in the index was software and computer services; in the second decade, the biggest sector was financial services.
+
The number of companies in each of the indices has changed over time; the pattern can be seen in the [http://www.employeeownershipindex.co.uk/downloads/Performance_analysis_to_June_2013_v2_1.pdf performance analysis to June 2013].
  
2. The benchmark FTSE All Share index is now a total return version (with dividends assumed to be re-invested) whereas the benchmark for the original 10% index was the capital-only version of the FTSE All Share. By definition, the total return version produces significantly higher returns than the capital-only version, so is a more demanding benchmark against which to judge performance.
+
===One year performance tables for new FTSE-calculated UK Employee Ownership Indices===
  
 
A new 3% version of the index is now being published. This includes all the companies in the main 10% index together with companies estimated to be more than 3% owned by employees other than main board directors. The 3% index contains a larger number of companies so is less susceptible to sector bias. For this reason, it may be of interest to investment managers who favour a diversified approach. The number of companies in each of the indices has changed over time; the pattern can be seen in the [http://www.employeeownershipindex.co.uk/downloads/Performance_analysis_to_June_2013_v2_1.pdf performance analysis to June 2013].
 
 
Although a 3% threshold may seem too low to create a discernible employee ownership effect, it is still a significant threshold for capital-intensive companies, and the culture of employee ownership may be just as strong in such companies. The new 3% version of the index has also performed strongly. Over the last ten years, since the start of 2003, the 3% index has out-performed the FTSE All Share by on average 11.8% a year.
 
 
 
===One year performance tables for new FTSE-calculated UK Employee Ownership Indices===
 
  
 
{| class="wikitable"
 
{| class="wikitable"
 
!  !! colspan="3" | over 1 year  
 
!  !! colspan="3" | over 1 year  
 
|-         
 
|-         
!  !! 10% EOI !! All-Share !!  difference
+
!  !! 3% EOI !! All-Share !!  difference
 
|-  
 
|-  
| 2003 || 42.3% || 20.7% || class="greencell" | 21.6%
+
| 2003 || 71.9% || 20.7% || class="greencell" | 51.1%
 
|-   
 
|-   
| 2004 || 27.3% || 12.8% || class="greencell" | 14.5%
+
| 2004 || 24.0% || 12.8% || class="greencell" | 11.2%
 
|-   
 
|-   
| 2005 || 57.3% || 21.8% || class="greencell" | 35.5%
+
| 2005 || 49.3% || 21.8% || class="greencell" | 27.5%
 
|-   
 
|-   
| 2006 || 15.8% || 16.8% || class="redcell" | -1.0%
+
| 2006 || 36.6% || 16.8% || class="greencell" | 19.8%
 
|-   
 
|-   
| 2007 || -8.4% || 5.3% || class="redcell" | -13.7%
+
| 2007 || -12.0% || 5.3% || class="redcell" | -17.3%
 
|-   
 
|-   
| 2008 || -48.5% || -29.8% || class="redcell" | -18.8%
+
| 2008 || -44.3% || -29.8% || class="redcell" | -14.5%
 
|-   
 
|-   
| 2009 || 54.0% || 29.9% || class="greencell" | 24.1%
+
| 2009 || 53.1% || 29.9% || class="greencell" | 23.2%
 
|-   
 
|-   
| 2010 || 5.5% || 14.3% || class="redcell" | -8.8%
+
| 2010 || 16.8% || 14.3% || class="greencell" | 2.5%
 
|-   
 
|-   
| 2011 || -22.6% || -3.3% || class="redcell" | -19.3%
+
| 2011 || -3.8% || -3.3% || class="redcell" | -0.6%
 
|-   
 
|-   
| 2012 || 18.6% || 12.2% || class="greencell" | 6.4%
+
| 2012 || 27.4% || 12.2% || class="greencell" | 15.2%
 
|-   
 
|-   
| '''average ''' || class="greycell" | 14.1% ||  || class="greycell" | 4.0%
+
| 2013 || 53.3% || 20.9% || class="greencell" | 32.4%
 +
|-
 +
| 2014 ||  5.8% ||  1.0% || class="greencell" |  4.8%
 +
|-
 +
| 2015 ||  26.4% ||  0.8% || class="greencell" |  25.6%
 +
|- 
 +
| '''average ''' || class="greycell" | 23.4% ||  || class="greycell" | 13.9%
 
|}
 
|}
  
Line 48: Line 47:
 
!  !! colspan="3" | over 1 year  
 
!  !! colspan="3" | over 1 year  
 
|-         
 
|-         
!  !! 3% EOI !! All-Share !!  difference
+
!  !! 10% EOI !! All-Share !!  difference
 
|-  
 
|-  
| 2003 || 71.9% || 20.7% || class="greencell" | 51.1%
+
| 2003 || 42.3% || 20.7% || class="greencell" | 21.6%
 
|-   
 
|-   
| 2004 || 24.0% || 12.8% || class="greencell" | 11.2%
+
| 2004 || 27.3% || 12.8% || class="greencell" | 14.5%
 
|-   
 
|-   
| 2005 || 49.3% || 21.8% || class="greencell" | 27.5%
+
| 2005 || 57.3% || 21.8% || class="greencell" | 35.5%
 
|-   
 
|-   
| 2006 || 36.6% || 16.8% || class="greencell" | 19.8%
+
| 2006 || 15.8% || 16.8% || class="redcell" | -1.0%
 
|-   
 
|-   
| 2007 || -12.0% || 5.3% || class="redcell" | -17.3%
+
| 2007 || -8.4% || 5.3% || class="redcell" | -13.7%
 
|-   
 
|-   
| 2008 || -44.3% || -29.8% || class="redcell" | -14.5%
+
| 2008 || -48.5% || -29.8% || class="redcell" | -18.8%
 
|-   
 
|-   
| 2009 || 53.1% || 29.9% || class="greencell" | 23.2%
+
| 2009 || 54.0% || 29.9% || class="greencell" | 24.1%
 
|-   
 
|-   
| 2010 || 16.8% || 14.3% || class="greencell" | 2.5%
+
| 2010 || 5.5% || 14.3% || class="redcell" | -8.8%
 
|-   
 
|-   
| 2011 || -3.8% || -3.3% || class="redcell" | -0.6%
+
| 2011 || -22.6% || -3.3% || class="redcell" | -19.3%
 
|-   
 
|-   
| 2012 || 27.4% || 12.2% || class="greencell" | 15.2%
+
| 2012 || 18.6% || 12.2% || class="greencell" | 6.4%
 
|-   
 
|-   
| '''average ''' || class="greycell" | 21.9% ||  || class="greycell" | 11.8%
+
| 2013 || 65.1% || 20.9% || class="greencell" | 44.2%
 +
|-
 +
| 2014 ||  -3.7% ||  1.0% || class="redcell" |  -4.7%
 +
|-
 +
| 2015 ||  1.6% ||  0.8% || class="greencell" |  0.8%
 +
|-
 +
| '''average ''' || class="greycell" | 15.7% ||  || class="greycell" | 6.2%
 
|}
 
|}
  
Line 85: Line 90:
 
!
 
!
 
|-
 
|-
|rowspan=”5” | 2013
+
|rowspan="2" | 2016
 +
|Q2
 +
|366.08
 +
|911.93
 +
|296.30
 +
|[http://www.employeeownershipindex.co.uk/downloads/Q2_2016_update_press_release.pdf Press release]
 +
|-
 +
|Q1
 +
|350.95
 +
|893.76
 +
|282.86
 +
|[http://www.employeeownershipindex.co.uk/downloads/Q1_2016_update_press_release.pdf Press release]
 +
|-
 +
|rowspan="4" | 2015
 
|Q4
 
|Q4
|195.53
+
|374.47
|365.98
+
|956.27
|205.57
+
|283.82
 +
|[http://www.employeeownershipindex.co.uk/downloads/Q4_2015_update_press_release.pdf Press release]
 +
|-
 +
|Q3
 +
|378.29
 +
|968.70
 +
|273.29
 
|
 
|
 +
|-
 +
|Q2
 +
|397.75
 +
|1015.82
 +
|289.85
 +
|[http://www.employeeownershipindex.co.uk/downloads/Q2_2015_update_press_release.pdf Press release]
 +
|-
 +
|Q1
 +
|371.10
 +
|847.52
 +
|294.60
 +
|[http://www.employeeownershipindex.co.uk/downloads/Q1_2015_update_press_release.pdf Press release]
 +
|-
 +
|rowspan="4" | 2014
 +
|Q4
 +
|368.62
 +
|756.33
 +
|281.53
 +
|[http://www.employeeownershipindex.co.uk/downloads/Q4_2014_update_press_release.pdf Press release]
 +
|-
 +
|Q3
 +
|389.17
 +
|754.06
 +
|280.16
 +
|[http://www.employeeownershipindex.co.uk/downloads/Q3_2014_update_press_release.pdf Press release]
 +
|-
 +
|Q2
 +
|395.13
 +
|774.84
 +
|283.19
 +
|[http://www.employeeownershipindex.co.uk/downloads/Q2_2014_update_press_release.pdf Press release]
 +
|-
 +
|Q1
 +
|405.36
 +
|798.06
 +
|276.96
 +
|[http://www.employeeownershipindex.co.uk/downloads/Q1_2014_update_press_release.pdf Press release]
 +
|-
 +
|rowspan="4" | 2013
 +
|Q4
 +
|382.90
 +
|714.85
 +
|278.86
 +
|[http://www.employeeownershipindex.co.uk/downloads/Q4_2013_update_press_release_v2.pdf Press release]
 
|-
 
|-
 
|Q3
 
|Q3
Line 96: Line 164:
 
|635.44
 
|635.44
 
|264.32
 
|264.32
|[http://www.employeeownershipindex.co.uk/downloads/EOI%202013%20Q1.pdf Press release]
+
|[http://www.employeeownershipindex.co.uk/downloads/Q3_2013_update_press_release_2.pdf Press release]
 
|-
 
|-
 
|Q2
 
|Q2
Line 104: Line 172:
 
|
 
|
 
|-
 
|-
|Q2
+
|Q1
 
|261.77
 
|261.77
 
|528.19
 
|528.19
Line 114: Line 182:
 
|231.89
 
|231.89
 
|466.42
 
|466.42
|230.71
+
|230.71
 +
|
 
|-
 
|-
 
|Q3
 
|Q3
Line 120: Line 189:
 
|431.41
 
|431.41
 
|222.26
 
|222.26
 +
|
 
|-
 
|-
 
|Q2
 
|Q2
Line 125: Line 195:
 
|402.55
 
|402.55
 
|212.31
 
|212.31
 +
|
 
|-
 
|-
 
|Q1
 
|Q1
Line 130: Line 201:
 
|422.27
 
|422.27
 
|217.93
 
|217.93
 +
|
 
|-
 
|-
 
| rowspan="4" | 2011
 
| rowspan="4" | 2011
Line 135: Line 207:
 
|195.53
 
|195.53
 
|365.98
 
|365.98
|205.57
+
|205.57
 +
|
 
|-
 
|-
 
|Q3
 
|Q3
Line 141: Line 214:
 
|369.91
 
|369.91
 
|189.28
 
|189.28
 +
|
 
|-
 
|-
 
|Q2
 
|Q2
 
|260.60
 
|260.60
 
|431.42
 
|431.42
|218.85
+
|218.85
 +
|
 
|-
 
|-
 
|Q1
 
|Q1
Line 151: Line 226:
 
|410.05
 
|410.05
 
|214.77
 
|214.77
 +
|
 
|-
 
|-
 
| rowspan="4" | 2010
 
| rowspan="4" | 2010
Line 157: Line 233:
 
|380.58
 
|380.58
 
|212.53
 
|212.53
 +
|
 
|-
 
|-
 
|Q3
 
|Q3
Line 162: Line 239:
 
|351.79
 
|351.79
 
|198.06
 
|198.06
 +
|
 
|-
 
|-
 
|Q2
 
|Q2
 
|229.15
 
|229.15
 
|331.33
 
|331.33
|174.12
+
|174.12
 +
|
 
|-
 
|-
 
|Q1
 
|Q1
Line 172: Line 251:
 
|348.07
 
|348.07
 
|197.78
 
|197.78
 +
|
 
|-
 
|-
 
|rowspan="4"|2009
 
|rowspan="4"|2009
Line 178: Line 258:
 
|325.85
 
|325.85
 
|185.93
 
|185.93
 +
|
 
|-
 
|-
 
|Q3
 
|Q3
Line 183: Line 264:
 
|339.92
 
|339.92
 
|176.23
 
|176.23
 +
|
 
|-
 
|-
 
|Q2
 
|Q2
Line 188: Line 270:
 
|276.44
 
|276.44
 
|143.88
 
|143.88
 +
|
 
|-
 
|-
 
|Q1
 
|Q1
Line 193: Line 276:
 
|218.82
 
|218.82
 
|129.87
 
|129.87
 +
|
 
|-
 
|-
 
| rowspan="4" |2008
 
| rowspan="4" |2008
Line 199: Line 283:
 
|212.87
 
|212.87
 
|143.12
 
|143.12
 +
|
 
|-
 
|-
 
|Q3
 
|Q3
Line 204: Line 289:
 
|278.94
 
|278.94
 
|158.98
 
|158.98
 +
|
 
|-
 
|-
 
|Q2
 
|Q2
Line 348: Line 434:
 
|100.00
 
|100.00
 
|
 
|
 +
|-
 
|}
 
|}

Latest revision as of 08:43, 12 July 2016

In 2015, the 3% index returned 26.4% compared to 0.8% for the FTSE All Share (total return version). This means the 3% index has out-performed the FTSE All Share in ten of the last thirteen years. The average annual margin of performance since the start of 2003 is +13.9%.

The 3% index includes all the companies in the 10% index together with companies estimated to be between 3% and 10% owned by employees (other than main board directors). Although a 3% threshold may seem low to create a discernible employee ownership effect, it is still a significant threshold for capital-intensive companies, and the culture of employee ownership may be just as strong in such companies. The 3% index contains a larger number of companies so is less susceptible to sector bias. For this reason, it may be of interest to investment managers who favour a diversified approach.

The number of companies in each of the indices has changed over time; the pattern can be seen in the performance analysis to June 2013.

One year performance tables for new FTSE-calculated UK Employee Ownership Indices

over 1 year
3% EOI All-Share difference
2003 71.9% 20.7% 51.1%
2004 24.0% 12.8% 11.2%
2005 49.3% 21.8% 27.5%
2006 36.6% 16.8% 19.8%
2007 -12.0% 5.3% -17.3%
2008 -44.3% -29.8% -14.5%
2009 53.1% 29.9% 23.2%
2010 16.8% 14.3% 2.5%
2011 -3.8% -3.3% -0.6%
2012 27.4% 12.2% 15.2%
2013 53.3% 20.9% 32.4%
2014 5.8% 1.0% 4.8%
2015 26.4% 0.8% 25.6%
average 23.4% 13.9%


over 1 year
10% EOI All-Share difference
2003 42.3% 20.7% 21.6%
2004 27.3% 12.8% 14.5%
2005 57.3% 21.8% 35.5%
2006 15.8% 16.8% -1.0%
2007 -8.4% 5.3% -13.7%
2008 -48.5% -29.8% -18.8%
2009 54.0% 29.9% 24.1%
2010 5.5% 14.3% -8.8%
2011 -22.6% -3.3% -19.3%
2012 18.6% 12.2% 6.4%
2013 65.1% 20.9% 44.2%
2014 -3.7% 1.0% -4.7%
2015 1.6% 0.8% 0.8%
average 15.7% 6.2%


Index values of the new 10% index and new 3% index at the end of each quarter in reverse chronological order.

31 Dec 2002 = 100.

New EOI 10% New EOI 3% FTSE All-Share
2016 Q2 366.08 911.93 296.30 Press release
Q1 350.95 893.76 282.86 Press release
2015 Q4 374.47 956.27 283.82 Press release
Q3 378.29 968.70 273.29
Q2 397.75 1015.82 289.85 Press release
Q1 371.10 847.52 294.60 Press release
2014 Q4 368.62 756.33 281.53 Press release
Q3 389.17 754.06 280.16 Press release
Q2 395.13 774.84 283.19 Press release
Q1 405.36 798.06 276.96 Press release
2013 Q4 382.90 714.85 278.86 Press release
Q3 330.03 635.44 264.32 Press release
Q2 266.30 538.53 250.25
Q1 261.77 528.19 254.47
2012 Q4 231.89 466.42 230.71
Q3 219.73 431.41 222.26
Q2 206.05 402.55 212.31
Q1 225.97 422.27 217.93
2011 Q4 195.53 365.98 205.57
Q3 213.50 369.91 189.28
Q2 260.60 431.42 218.85
Q1 262.42 410.05 214.77
2010 Q4 252.50 380.58 212.53
Q3 231.25 351.79 198.06
Q2 229.15 331.33 174.12
Q1 252.88 348.07 197.78
2009 Q4 239.34 325.85 185.93
Q3 264.15 339.92 176.23
Q2 206.45 276.44 143.88
Q1 159.82 218.82 129.87
2008 Q4 155.43 212.87 143.12
Q3 207.03 278.94 158.98
Q2 245.24 316.73 180.92
Q1 269.33 349.35 183.53
2007 Q4 302.03 382.25 203.78
Q3 338.35 437.11 204.42
Q2 341.12 454.68 208.28
Q1 335.65 452.17 199.18
2006 Q4 329.88 434.42 193.60
Q3 319.31 379.75 182.43
Q2 323.99 342.38 176.03
Q1 350.37 357.61 179.11
2005 Q4 284.88 318.02 165.75
Q3 253.64 300.69 159.13
Q2 212.70 245.54 147.27
Q1 215.46 236.31 140.26
2004 Q4 181.16 213.06 136.14
Q3 150.45 187.17 127.74
Q2 142.68 182.41 124.15
Q1 152.72 186.35 121.40
2003 Q4 142.30 171.86 120.71
Q3 130.81 148.58 110.29
Q2 118.85 126.00 106.22
Q1 85.93 93.62 92.89
2002 Q4 100.00 100.00 100.00
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