INTERNATIONAL: FTSE Russell Publishes Annual Country Classification Review

Monday September 14 2015

FTSE Russell, the global index provider, has published the results of the FTSE Annual Country Classification Review for 2015. FTSE formally reviews country classification within its global equity indexes on an annual basis each September using a comprehensive, transparent and consistent methodology. This annual review incorporates ongoing country classification research and classifies stock markets as Developed, Advanced Emerging, Secondary Emerging or Frontier within the FTSE global indexes.

Following the September 2015 annual review, FTSE has confirmed the following Country Classification changes:

• Greece will be demoted from Developed to Advanced Emerging due to the recent extended market closure, imposition of capital controls on domestic investors and continued economic instability; these are not characteristics associated with a stable Developed market
• Qatar will be promoted from Frontier to Secondary Emerging since this market now meets the criteria required to attain Secondary Emerging market status
• Latvia and Palestine, previously ‘Unclassified’, will be designated as eligible Frontier markets within the FTSE Country Classification scheme

The FTSE Watch List from September 2015 is as follows:

• China A-Shares – possible inclusion as Secondary Emerging
• Kazakhstan – possible inclusion as Frontier
• Kuwait – possible inclusion as Secondary Emerging
• Mongolia – possible inclusion as Frontier
• Poland – possible promotion from Advanced Emerging to Developed
• Saudi Arabia – possible inclusion as Secondary Emerging

Click on the link above for further details.