Global index provider, FTSE Group (â€FTSEâ€) has completed its annual review of country classification for the FTSE Global Equity Index Series (GEIS) and releases its results today. Global equity market structures evolve on an ongoing basis, and to keep pace, FTSE works closely with stock exchanges and regulators throughout the year to ensure its benchmarks remain an up-to-date and accurate reflection of the investment opportunity in global markets.
Working with an expert committee of independent market practitioners, FTSE formally reviews country classification within its global index series on an annual basis using an advanced, transparent and consistent methodology. As a result of the 2009 review, the following changes will be implemented within the FTSE Global Equity Index Series in September 2010:
- UAE will be included as a Secondary Emerging market;
- Argentina will be moved from Secondary Emerging to Frontier status;
- Malta will be included as a Frontier market.
As part of its country classification programme, FTSE also maintains a Watch List of countries that it is actively monitoring for possible promotion and demotion between Developed, Advanced Emerging, Secondary Emerging and Frontier status. Following today’s review, Iceland will be removed from the Watch List, while China “A†shares, Colombia, Greece, Kazakhstan, Kuwait, Taiwan and Ukraine will remain on the Watch List. They are joined by Czech Republic, Malaysia and Ukraine, which are added for possible promotion to Advanced Emerging markets. All of these Watch List markets will be reviewed again in September 2010.
Mark Makepeace, Chief Executive, FTSE Group said, “Congratulations to the markets which today have been promoted to new designations within FTSE Global Equity Index Series. This is a great achievement in today’s challenging market conditions.â€
He continued, “FTSE also congratulates those markets which have been retained on the Watch List – although they do not yet fully meet the criteria to move to the next category, FTSE recognises that there has been progress towards those goals. We look forward to working with these markets through our engagement programme, to facilitate a positive dialogue between market authorities and international investors.â€
Through its unique country classification engagement programme, FTSE will work with representatives of the markets on the Watch List over the next twelve months, to explain the criteria used to assess markets, discuss any changes in market practice and to assist these representatives in communicating progress back to the international investment community.
For full information about FTSE’s country classification process, including details of all criteria for Developed, Emerging and Frontier status, along with an assessment of each of the markets classified in FTSE equity indices, please visit http://www.ftse.com/country
About FTSE Group
FTSE Group is a world-leader in the creation and management of indexes. With offices in Beijing, London, Frankfurt, Hong Kong, Madrid, Paris, New York, San Francisco, Boston, Shanghai and Tokyo, FTSE Group services clients in 77 countries worldwide. It calculates and manages the FTSE Global Equity Index Series, which includes world-recognized indexes ranging from the FTSE All-World Index, the FTSE4Good series and the FTSEurofirst Index series, as well as domestic indexes such as the prestigious FTSE 100. The company has collaborative arrangements with the Athens, AMEX, Cyprus, Euronext, Johannesburg London, Madrid, NASDAQ and Taiwan exchanges, as well as Nomura Securities, and Xinhua Finance of China.
