Professional services index listed on LSE
An index of professional services firms listed on the London Stock Exchange (LSE) has been launched by the professional services association Managing Partners’ Forum (MPF).
The £3.9bn MPF Professional Services Index, compiled by investment bank Noble, aims to raise the profile of the professional services industry for the investment community.
Richard Chaplin, executive director at MPF, said the index was set up to provide information on a disparate sector that has remained invisible to investors.
Chaplin said the firm wants to encourage the investment community to recognise the professions as a stand-alone investment group, allocate analysts to cover the sector and create funds using the index as a benchmark.
Alex Magni, head of research at Noble, said: "There are no specialist funds dedicated to professional services firms. But that could change, particularly with an index as a benchmark.
"Even in challenging market conditions, professional firms are fairly resilient. With a diversified set of services in demand at all stages of the business cycle, they present a good investment option."
Using historic data the index has outperformed the FTSE AIM 100, but shows more volatility than the FTSE 350 Support Services and FTSE 350 indices, according to MPF.