Pension funds look set to make extensive use of a variant of the UK FTSE All-Share index, which will cap the weighting of individual stocks at 5%. The capped All-Share, plus a capped FTSE 100, will run alongside existing indices.

The new indices address the issue of a few large-cap stocks dominating the index. Concern over the issue has been expressed by Fidelity (Financial News, January 17) and Mercer Investment Consulting.