General Motors Co., Detroit, joined some indexes on the day of its initial public offering Nov. 18, and is poised to join others today and possibly more in the next month.
FTSE Group added GM to its indexes following the close of markets on Nov. 18, the day of the automaker's IPO, according to Jill Mathers, FTSE spokeswoman in New York.
GM will be added to the FTSE All-World, FTSE Multinationals, FTSE Global 100, FTSE Global Style, and FTSE Renaissance IPO indexes.
GM's entry in the FTSE indexes was effective from the start of trading today.
MSCI Inc. plans to add GM to its MSCI All-Country World Index and MSCI U.S. Large Cap 300 Index, as of the Nov. 30 close of the market, according to an MSCI statement. MSCI classified GM as a large cap and a value stock.
Russell Investments now plans to consider adding GM to its Russell 3000 index in June during the index's annual reconstitution, rather than as early as Dec. 17 as the investment services firm initially announced, William Ferri, Russell spokesman in New York, said today.
“GM will be eligible for inclusion in the Russell 3000 during the June reconstitution of its indexes,” Mr. Ferri said.
Russell backtracked from its initial plan to consider GM's inclusion in December as part of the Russell quarterly addition of IPOs to its indexes, Mr. Ferri said.
GM doesn't fit the Russell index criteria for inclusion as a new company, Mr. Ferri said, pointing out the Russell construction methodology, which states an eligible IPO ”is defined as any security newly available – truly for the first time – to the public for general investment.”
Standard & Poor's officials won't comment on the possibility of adding any company to its indexes, said David Guarino, spokesman.
Wilshire Associates added GM to the Wilshire 5000 stock index Nov. 18, the investment services company announced.
The IPOX Global Composite Index added GM as soon as the offering was completed, said Josef Schuster, CEO of IPOX Schuster LLC, developer of the index, which has 2,200 companies and $2.5 trillion in total market capitalization.
Mr. Schuster expects portfolio managers and analysts to classify GM as a growth stock rather than a value stock because of its large presence in emerging markets of China and Brazil and also because “GM is not going to pay a dividend as value stocks do,” he said.