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Tate & Lyle = Norwich City Football Club — 7IM Short Thoughts

1 min watch

Ben Kumar, Head of Equity Strategy30 Nov 2023

When relegation season comes around (once every three months) in the FTSE 100, it’s important for companies to remain in the Premier League.

In our latest Short Thoughts series, Ben explains the commonalities between Tate & Lyle and Norwich City Football – look away now Norwich fans.

Watch now.

Transcript

In footballing terms, it's relegation week in the FTSE 100. What do I mean by that? Well, it's the occasion once every three months where FTSE updates its list of the 100 biggest companies in the UK. And this matters for companies because when you're in the FTSE 100, you're in the Premier League. If you look at passive products tracking the FTSE 100, they're huge. The iShares product is about £11 billion.

But when you look at the next league down, the FTSE 250, iShares have a product that's £750 million. So less than a 10th of the size. So if you're a company and you want lots of shareholders and you want the bragging rights at the CEO meetings, you want to be in the FTSE 100. The company that's had the most eclectic history is Tate & Lyle. Since the FTSE 100 started in 1984, Tate & Lyle has been in and out 12 times. In Premier League terms, that makes it Norwich City.