Отправлено 09 August 2007 - 13:17
S&P index offers frontier spirit for managers
By Stacy-Marie Ishmaelin London
Published: August 9 2007 03:00 | Last updated: August 9 2007 03:00
Standard & Poor's has launched an investible index for "frontier equity markets" to offer fund managers exposure to markets where few investors have gone before.
The S&P/IFCG Extended Frontier 150 index consists of the largest and most liquid stocks from more than 30 emerging countries in regions spanning eastern Europe, Africa and the Caribbean.
"None of these markets have been included in any investable indices so far," said Alka Banerjee, vice-president of Standard & Poor's Index Services. "They offer sophisticated investors a chance to really diversify their portfolios."
The three stocks with the biggest weightings in the index are all based in the Middle East while Kazakhstan's Kazkommertsbank ranks tenth overall. Vietnamese stocks have also been of particular interest, said Ms Banerjee.
Volatility in financial markets would not put investors off. "There is volatility everywhere, but these markets have performed very well."
Investing in the index would have offered year-to-date returns of 34.4 per cent, according to S&P's historical models.
To be eligible for inclusion in the index, companies must have a float-adjusted market capitalisation of at least $50m and a minimum value traded of $25m over the preceding six months. Markets with broad foreign investment curbs, suchas Saudi Arabia, are ineligible.
Colombia, Kuwait, Nigeria, the United Arab Emirates and Qatar have the highest country weightings, and Pakistan the largest number of stocks included.