ETF providers or Index Tracking firms faced significant difficulties in mirroring the FTSE index treatment employed for the spin-off of Verizion from Vodafone. Our initial analysis showed as a result of the Verizon to be received by Vodafone shareholders c. 3% of the full FTSE weight would be treated as a return of capital with foreign exchange risk and a significant short term capital requirement. SCORPEO worked with shareholders to firstly advise on the problems they would face on this corporate event then formulated execution mechanics to minimize potential losses.

For full access to this and future reports please contact  Ian Davey on +44 (0)203 598 2010 or email Ian.Davey@scorpeo.com