Email Contact Phone Company Visit Website

New York Head Office

Wall Street Plaza 88 Pine Street, 2nd Floor
New York
NY
US

London Office

75 King William Street
London
GB

Tokyo Office

Hanzomon First Building 8F 1-4 Kojimachi, Chiyoda-ku
Tokyo
JP

Hong Kong Office

Suites 1910-1919, Jardine House 1 Connaught Place
Central, Hong Kong
HK

Telephone

00442076182183

Contact

Nele Van der borght
[email protected]
Back to all MSCI announcements

MSCI Barra Launches MSCI Frontier Emerging Markets Index

MSCI Barra (NYSE: MXB), a leading provider of investment decision support tools worldwide, including indices and portfolio risk and performance analytics announced today that it has launched the MSCI Frontier Emerging Markets Index, and a more tradable proxy for this benchmark - the MSCI Frontier Emerging Markets APEX Index. The indices may be licensed and used for portfolio management and benchmarking purposes, and as the basis of structured products and other index-linked investment vehicles such as exchange traded funds (ETFs).

The MSCI Frontier Emerging Markets Index is designed to serve as a benchmark covering all countries from the MSCI Frontier Markets Index and the lower size spectrum of the MSCI Emerging Markets Index, which tends to be less correlated with developed markets.

“Frontier markets are typically characterized by limited market accessibility, small company size and low liquidity, while emerging markets are usually expected to provide higher levels of openness, investability and efficiency of the operational framework,” explained Giacomo Fachinotti, Executive Director and Head of the MSCI Index Policy Committee. “However, some characteristics of smaller emerging markets may resemble those of frontier markets. For example, smaller emerging markets typically have few global companies and are less likely to be widely owned and researched, resulting in lower correlation with larger markets.”

In addition to the countries from the MSCI Frontier Markets Index, the following countries from the MSCI Emerging Markets Index will be included in the new MSCI Frontier Emerging Markets Index: Argentina, Colombia, Egypt, Jordan, Morocco, Pakistan, Peru, and the Philippines.

The MSCI Frontier Emerging Markets APEX Index is designed to serve as a more tradable proxy for the MSCI Frontier Emerging Markets Index. It includes all constituent countries of the MSCI Frontier Emerging Markets Index except those countries with material restrictions related to foreign exchange operations, material capital controls, or countries with very low liquidity in the local market and for which no liquid foreign listings exist.

The following constituent countries of the MSCI Frontier Emerging Markets Index will not be included in the MSCI Frontier Emerging Markets APEX Index: Mauritius, Sri Lanka, Ukraine, and Vietnam.

The MSCI Frontier Emerging Markets Index and the MSCI Frontier Emerging Markets APEX Index are available on request to eligible clients directly from MSCI Barra. The indices will be added to the MSCI Equity Index products in December 2008.