Five hedge fund related companies have been excluded due to infrequent trading, as well as 3i Quoted Private Equity, UK growth trust Principle Capital Investment Trust and sector specialist securitised debt trust Prodesse Investment. It had been anticipated that a number of private equity investment trusts would be excluded from the All Share due to a move from monthly trading volumes to a median daily trade higher than 0.025 per cent of shares in issue, though the number at risk fell when FTSE lowered the minimum per day to 0.015 per cent.

Andrea Lowe, principal of trade body Listed Private Equity (LPEQ) said: "It looks as though FTSE has been pragmatic. As listed private equity is a long term investment, managers are not focused on daily dealing data - and being certain about daily dealing with disparate sources of information is difficult anyway."

The hedge fund companies due for exclusion are BH Global (euro), Goldman Sachs Dynamic Opportunities (USD), CMA Global Hedge (Sterling), Blackrock Absolute Return Strategies (Sterling) and Dexion Alpha Strategies (Ord Euro). However the Euro share class on BH Global and the US dollar class on Goldman Sachs Dynamic Opportunities are only secondary lines, and the BH Global Sterling and US dollar share classes, and Goldman Sachs Dynamic Opportunities Sterling and Euro share classes which are treated as one constituent, will stay in the FTSE 250 and therefore the All Share.

Despite the fact that few investment trusts have fallen out this year due to FTSE lowering the minimum liquidity level, the Association of Investment Companies (AIC) has said over the next year it will work with its members to see how they can ensure that they meet FTSE’s liquidity rules for the next rebalancing. For example, if an investment trust has a savings scheme, instead of limiting contributions to one or two days a month it could spread this more evenly.

Meanwhile Axa Property Trust, Kenmore European Industrial Fund, Invista European Real Estate Trust, and Advantage Property Income Trust have also been excluded from the All Share but because of a fall in their market cap. The minimum size for constituents is £35m with a band of 15 per cent either side for a promotion to or demotion from the FTSE SmallCap.

Today Axa has a market cap of £25.3m and is down 7.92 per cent at 23.25p; Kenmore has a market cap of £20.6m and is down 13.56 per cent at 12.75p; Invista has a market cap of £18m and is down 16.67 per cent at 13.25p and Advantage has a market cap of £17.1m and is down 4.17 per cent at 12.5p.

However four investment trusts have been promoted to the All Share: Scottish Oriental Smaller Companies; F&C US Smaller Companies; Artemis Alpha Trust and Schroder UK Mid & Small Cap Fund.

Alliance Trust retains its place in the FTSE 100 and could be joined by a second as Foreign & Colonial Investment Trust, with a market cap of £1.49bn today, is on the reserve list.
 
For the full list of changes to the indices click here.