Global index provider FTSE Russell has released its annual review of country-wise classification in its global equity and fixed income indices.
According to the index provider’s fixed income review category, South Korea is under consideration for a potential market accessibility upgrade to level 2 and inclusion in the FTSE World Government Bond Index, driven by proposed accessibility improvements. The index provider said that feedback from market participants will play a crucial role in evaluating these reforms.
India is being monitored for a potential upgrade to market accessibility level 1 and inclusion in the FTSE Emerging Markets Government Bond Index. Talks with Indian market authorities regarding ongoing reforms are in the pipeline, it added.
Switzerland is also on the watch list for a potential upgrade to market accessibility level 2 and inclusion in the WGBI.
In the equities review, Nigeria was put on the watch list in September 2022 due to capital repatriation issues. Despite discussions with Nigerian authorities, the issue remained unresolved, resulting in Nigeria’s reclassification from frontier to unclassified on September 8, 2023.
Vietnam is under review for possible advancement to secondary emerging market status, as it doesn’t meet FTSE’s settlement requirements. The market is actively engaged in regulatory reforms and upgrading its trading platform, as monitored by FTSE Russell.
Egypt is on the watch list for possible reclassification from secondary emerging to unclassified status due to capital repatriation delays since March 2023. Pakistan is also on the watch list for potential reclassification from secondary emerging to frontier market status.
David Sol, global head of policy and governance at FTSE Russell, said: “Through our proactive programme of engagement and market analysis, FTSE Russell equity and fixed income indices remain fit for purpose and reflect both the opportunities and challenges faced by investors.”
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