Phoenix Group

[monabri]

Just noticed that they are now at position #1 in the FTSE250. There's a good chance they will be 'promoted' to the FTSE100.

[Breelander]

Just noticed that they are now at position #1 in the FTSE250. There's a good chance they will be 'promoted' to the FTSE100.

They are not quite at the FTSE 100 automatic entry position yet. Well, not on Friday's close. This table is a good way to check on the likely 'leavers' and 'joiners'.

http://www.stockchallenge.co.uk/ftse.php

At current standings, doesn't look like the FTSE 100 will have any changes at the next review.

[MDW1954]

Were they in the FTSE 100 before, ie last year? I had imagined so, but maybe I'm wrong.

MDW1954

[monabri]

Just noticed that they are now at position #1 in the FTSE250. There's a good chance they will be 'promoted' to the FTSE100.

They are not quite at the FTSE 100 automatic entry position yet. Well, not on Friday's close. This table is a good way to check on the likely 'leavers' and 'joiners'.

http://www.stockchallenge.co.uk/ftse.php

At current standings, doesn't look like the FTSE 100 will have any changes at the next review.

The link shows PHNX at position 95.

[Breelander]

The link shows PHNX at position 95.

The link also shows the automatic entry point for the ftse 100 is at 91 so, as I said, not quite there yet.

[Gengulphus]

The link also shows the automatic entry point for the ftse 100 is at 91 ...

Not quite: it shows the automatic entry position as being between 90 and 91. Which (pedantically speaking) is of course ridiculous: a company cannot be at a position between 90 and 91, such as 90.5! But what it actually means is that companies at positions <= 90 automatically enter the FTSE 100, while companies at positions >= 91 and above don't - so it's actually rising (at least) to position 90 just above the point marked in the link as the automatic entry position that qualifies a company for automatic entry, rather than position 91 just below that point.

Conversely, what is marked as the automatic exit position actually means that companies at positions >= 111 (just below it) automatically exit the FTSE 100, while companies at positions <= 110 don't. So it's falling (at least) to position 111 that qualifies a company for automatic exit.

So companies at positions 91 to 110 neither automatically enter nor automatically exit the FTSE 100. But that doesn't mean that they're certain to stay in if they're already in and out if they're already out. That's because there is another rule that the FTSE 100 has to contain 100 companies (*), and to ensure that remains the case, if there's an imbalance between the numbers of companies that automatically enter and that automatically exit, that's corrected by promoting extra companies from positions 91-110 (highest position first) or relegating extra companies from those positions (lowest position first). If one works out the consequences of what that means for companies' chances, it means that companies in positions 91-100 won't exit the FTSE 100 if they're already in it but might end up entering it if they're not, while companies in positions 101-110 won't enter the FTSE 100 if they're not in it but might end up exiting it if they are.

The other point to make is that all these FTSE 100 entry and exit rules are only applied at the cutoff point for each of the index's quarterly reviews - i.e. "automatic entry" does not imply "automatic and immediate entry". If Phoenix were to rise to position 90 or above, but fall back to position 91 or below before the next such cutoff point (which is around the beginning of March), it wouldn't automatically enter the FTSE 100 on that review or at any earlier date. There are some rules that can cause companies to enter or leave the FTSE 100 between reviews, but they're only applied if and when something like a company going bust, two companies merging into one, one demerging into two, etc, would cause the number of companies in the FTSE 100 to vary from 100. As long as that doesn't happen, they ignore variations in companies' market caps.

(*) Note that's 100 companies, not 100 shares. The FTSE 100 actually currently contains 101 shares, because RDSA and RDSB only count as one company.

Gengulphus

[jackdaww]

will promotion or otherwise affect its prospects?

i hold.

[Dod101]

will promotion or otherwise affect its prospects?

i hold.

I too hold. In theory it may provide a short term boost whilst tracker funds buy it but then it will tend to settle down again. It is a bit of a poisoned chalice because often newly promoted companies do not stay there very long and if they fall out of the FTSE again, the position reverses and some trackers will have to sell. I am much more interested in its prospects and its ability to increase its dividend than short term gyrations in its share price.

Dod