Business. Empowered.
2 October 2013
Analysis of UK Quoted Shares by Value
Louise Rutter
Manager, Equiniti Investor Analytics
+44 (0) 20 74 691 883
louise.rutter@equiniti.com
CONFIDENTIAL
Jason Black
Head of Operations, Europe
+44 (0) 20 77 767 574
black@orientcap.com
Agenda
■ About Equiniti & Orient Capital (OC)
■ Methodology
■ Company Support
■ Classification
■ Results
■ Recommendations
About Equiniti & Orient Capital
■ Equiniti are specialists in Share Registration and Registrar to 50% FTSE 100 &
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35% FTSE 250
Equiniti appointed by ONS to provide analysis of pooled nominee
shareholdings for 2010 Ownership Survey
Orient Capital are largest provider of register analytics globally with
expertise in equity market intelligence, proxy solicitation, investor
communications and shareholder management technology
In 2012, Equiniti appointed Orient Capital as an outsourcing partner on
behalf of its 140+ Investor Analytics Clients
Equiniti & Orient Capital jointly appointed by the ONS to provide analysis of
nominee shareholdings as at 31 December 2012
Methodology
■ ONS provided Equiniti & OC with a sample of 200 UK companies
■ Suggestion to provide analysis on two data sets:
□ Pooled nominees in line with 2010 contribution
□ Full share register: certificated + CREST (pooled & non-pooled nominees)
in line with recommendations of 2010 results
■ Pooled nominees:
□ Registered shareholders acting as custodians on behalf of multiple clients
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□
within each designated account
Results in multiple combinations of dynamic beneficial/investment
manager shareholdings unique to each company
These are identified and tracked by the company or its appointed agent
employing provisions in the Companies Act 2006 (‘Section 793’)
Methodology improvements
■ Sample increased from sub-set of FTSE100 companies to 200 across
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UK market
Provided full sector analysis for ‘Rest of World’ category
Thresholds not applied to identification of beneficial shareholders
within pooled nominee holdings
Automated processing of data using OC’s advanced technology
Improved balance of industry group representation in sample
More extensive project commenced immediately after analysis date
(31 Dec) and over a longer period than 2010 project (14 weeks vs. 9)
Sample company support
■ Strong sample group support for 2012 survey
■ Equiniti & OC analysed 67 companies of the 200 sample equating to
over 50% of the sample group market cap
■ Analysis compiled using:
□ Register of Members (Share Register)
□ Register of Interests’ Disclosed (ROI/Section 808 Register)
□ Orient Capital’s proprietary beneficial shareholder database
Classification of beneficial owners
■ Cross-referenced and agreed with the ONS final list of Euroclear and
Equiniti & OC defined pooled nominees
■ Beneficial shareholders identified within agreed pooled nominee
accounts were classified as one of the following:
Rest of the world
Banks
Charities
Individuals
Insurance companies
Investment trusts
Other financial institutions
Pension funds
Private non-financial companies
Public sector
Unit trusts
ROW region:
Europe
Offshore UK
North America
Asia
Africa
Australasia and Oceania
Middle East
South/Central America
and the Caribbean
ROW sector of ben owner:
Banks
Charities
Individuals
Insurance companies
Investment trusts
Other financial institutions
Pension funds
Private non-financial
companies
Public sector
Unit trusts
Classification of companies
■ Companies assigned to industry group:
□ Financial / Manufacturing / Non-Manufacturing
■ Companies assigned to FTSE sector weightings:
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Financials
Oil & Gas
Consumer goods
Basic Materials
Consumer Services
Industrials
Health Care
Telecommunications
Utilities
Technology
Results
■ Equiniti & OC provided analysis of shareholdings representing
£767bn – 50.3% of total value of sample
■ Data for 67 companies was included in the final sample
■ Key result - assumptions for multiple ownership of shares for 2012:
Rest of World
Banks
Charities
Individuals
Insurance Companies
Investment Trusts
Other Financial Institutions
Pension Funds
Private Non-Financial Companies
Public Sector
Unit Trusts
Per cent of value
pooled nominees
65.9
0.7
0.4
7.9
3.5
0.1
0.5
5.8
0.1
0.1
15.0
Per cent of value
full register
57.9
0.9
0.4
6.6
4.0
0.2
4.8
8.1
1.0
1.8
14.4
Coverage
■ An average of 90.7% of a company’s total market value analysed
through full register analysis
■ Final industry sample weightings:
Financials
Oil & Gas
Consumer Goods
Basic Materials
Consumer Goods
Industrials
Health Care
Telecommunications
Utilities
Technology
Weighting (%)
within sample
15.71
15.84
13.12
11.48
10.98
4.12
13.49
11.07
2.70
1.50
Weighting (%)
within FTSE 350
22.20
16.37
14.00
10.64
9.66
8.79
7.08
5.78
3.99
1.49
Additional reporting
■ Commentary accompanying various tables of results:
□ Comparison of 2012 results to 2010
□ Factors contributing to more significant changes
□ Detail regarding classification descriptions
■ Analysis of ratio of shares held by individuals in certificated form for
sample of FTSE100 companies also provided:
UK individuals
Rest of World individuals
Per cent of value
90.1
9.9
Recommendations
■ Equiniti & Orient Capital’s recommendations for improvements to
the methodology employed in future Share Ownership surveys
include:
□ Commission only the analysis of all shareholdings on a company’s share
□
register i.e. both pooled and ‘one-to-one’ nominee holdings in Euroclear,
as well as certificated shareholdings
Aim to replicate even more closely equivalent FTSE sector weightings in
the sample of companies analysed