Time Inc, Barclays to
launch Fortune 500 stock indices
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[June 26, 2017]
By Sheila N. Dang
NEW YORK (Reuters) - Time Inc said Monday
it will license its Fortune brand for stock indexes based on the Fortune
500 in a new partnership with Barclays PLC <BARC.L> in an effort to
diversify Time's revenue into the growing index-investing business.
The Barclays Fortune 500 Equal Weighted Index will launch in July,
tracking about 450 publicly traded companies with a combined revenue of
more than $11 trillion, Dupe Adeyemo, a director at Barclays, told
The index will exclude private companies, master limited partnerships
and companies that do not meet liquidity requirements among the Fortune
500, Adeyemo said.
Time, which like many of its publishing peers has been struggling as
print circulation shrinks and advertisers shift to digital platforms,
will aim to broaden its revenue with the partnership as index-based
investing is increasing in popularity.
"We're trying to be more creative about ways to expand our brand," said
Brian O'Keefe, deputy editor of Fortune magazine. "Frankly, this index
should have been done a long time ago." In addition to the magazine, the
brand hosts conferences such as the "Most Powerful Women Summit" and is
Time declined to discuss the financial terms of the partnership.
Revenue-weighted and profit-weighted indexes are planned for the fourth
quarter this year, Adeyemo said.
We think a name like Fortune that resonates with the public
distinguish ourselves among other ETFs that come out in the market,
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The Barclays logo is seen in front of displayed stock graph in this
illustration taken June 21, 2017. REUTERS/Dado Ruvic/Illustration/File
The Fortune 500 is an annual list compiled and published by Fortune magazine
that ranks 500 of the largest U.S. corporations by total revenue.
It is unclear if Time Inc will be able to generate meaningful revenue by getting
into the index business.
"The licensing of indices is not a phenomenally lucrative business," said Dave
Nadig, chief executive officer of ETF.com, based in New York.
Time evaluated a sale earlier this year, but talks with Meredith Corp failed
when the two could not agree on price.
Earlier this month, Time eliminated 300 positions or 4 percent of its workforce.
Over the past 12 months, index mutual funds and exchange-traded funds pulled in
$718 billion, while active funds bled $152 billion, according to the Thomson
Reuters research service Lipper.
(Reporting by Sheila Dang in New York; additional reporting by Trevor Hunnicutt
in New York; Editing by Cynthia Osterman)
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