The FTSE-APCIMS (Association of Private Client Investment Managers and Stockbrokers) Private Investor Indices committee, which is responsible for overseeing these indices, will make changes to the manner in which asset classes have been combined to form each of the three indices with effect from 18 June 2007.

The committee has included a weighting for hedge funds in the growth and balanced indices but not in the income index.

It has also included a weighting for UK commercial property. As with hedge funds, property has become part of a private client portfolio and the opportunities for investment in this asset class have increased.

Mike Lenhoff, chairman of the FTSE-APCIMS Private Investor Indices Committee said: "It has taken a bit of time for hedge funds to secure a place in private client portfolios. Equally, it has taken APCIMS a bit of time to identify the move, but now that it has, the Private Investor Indices Committee has taken the decision to include a weighting for hedge funds in two of the three indices.

"A comparison shows that hedge funds and UK commercial property will comprise 10 per cent of the Growth and Balanced indices, split equally into 5 per cent allocations. The introduction of the hedge fund and UK commercial property components will be accommodated within the existing indices by a 5 per cent reduction in the allocation to UK equities and a 5 per cent reduction in the allocation to bonds.

"As for the income index, first, the allocation to international equities will be raised by 2.5 per cent and the allocation to UK equities correspondingly reduced by 2.5 per cent. Second, a 5 per cent weighting for UK commercial property will be introduced and this will be accommodated by reducing the allocation to bonds by 5 per cent".

FTSE International will remain responsible for producing the three APCIMS indices. The indices will continue to be available in total return form or as a capital only series. They will continue to be published in the back pages of the weekend London Financial Times.