NEW YORK, Sept. 16, 2011 (GLOBE NEWSWIRE) -- Dow Jones Indexes, a leading global index provider, today announced it reclassified Colombia to "Emerging Markets" status from "Frontier Markets" status, and added 11 countries to Frontier Markets status following the annual review of the Dow Jones Indexes Country Classification System. The changes are effective as of March 19, 2012.
Designed with the global investor in mind, the Dow Jones Indexes Country Classification System is used to classify all countries covered in Dow Jones Indexes' major index families. Assessments of the countries are used to produce a country classification assignment into one of three categories:
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Developed Markets: the most accessible to, and supportive of, foreign investors with a high degree of consistency across these markets;
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Emerging Markets, which generally have less accessibility relative to developed markets, but demonstrate a level of openness; and
- Frontier Markets, which are typically much less accessible to foreign investors, exhibit notable limitations in their regulatory and operational environments, and support a smaller investment landscape; Frontier Markets tend to be much less robust and in the earlier stages of development.
The 11 countries newly covered by the system under the Frontier Markets designation include:
- Four from Europe
- Croatia
- Macedonia
- Serbia
- Ukraine
- Four from Middle East and Africa
- Lebanon
- Kenya
- Nigeria
- Tunisia
- Three from Asia/Pacific
- Bangladesh
- Kazakhstan
- Vietnam
Combined with the move of Colombia to the Emerging Markets list from the Frontier Markets list, the addition of 11 countries increases the total number of Frontier Markets countries to 30 from 20; the reclassification of Colombia pushes the total number of Emerging Markets countries to 19 from 18. The number of Developed Markets remains unchanged at 27, meaning the number of countries covered by the Dow Jones Indexes Country Classification System totals 76, up from 65 before the June annual review.
Country classification process
The Dow Jones Indexes Country Classification System attempts to strike an appropriate balance between rules-based methodology that incorporates objective data with the subjective guidance of the Dow Jones Index Oversight Committee (DJIOC), which renders the final classification assignment decision for each country.
The DJIOC reviews each country's classification status individually -- utilizing quantitative and qualitative elements while leveraging internal and external resources. The committee then assesses the countries according to a pre-defined framework built around the needs of international portfolio investors in three broad categories: market and regulatory structure, trading environment and operational efficiency. Ultimately, the DJIOC bases its decisions on information deemed relevant.
Country assignments are formally reassessed each year in June by the DJIOC. A public announcement of classification changes, if any, is made in September of each year. As a general rule, a minimum of six months notice is provided for each country classification change.
Extraordinary reclassifications
The DJIOC will re-visit a country classification on an as-needed basis if there is a material change in any of the assessments. If the committee deems a classification change is warranted, Dow Jones Indexes aims to provide a minimum of 90 days notice before a reclassification is implemented. Such changes will be implemented with the regular quarterly index review schedule, following the third Friday in March, June, September or December.
Journalists may e-mail questions regarding this press release to media@djindexes.com or call the Dow Jones Indexes' press office.
About Dow Jones Indexes
Dow Jones Indexes (www.djindexes.com) is a leading full-service index provider that develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products. Best-known for the Dow Jones Industrial Average, Dow Jones Indexes offers more than 130,000 equity indexes as well as fixed-income and alternative indexes, including measures of hedge funds, commodities and real estate. Dow Jones Indexes employs clear, unbiased and systematic methodologies that are fully integrated within index families. Dow Jones Indexes is part of a joint venture company owned 90 percent by CME Group Inc. (www.cmegroup.com) and 10 percent by Dow Jones & Company, Inc. (www.dowjones.com), a News Corporation company (Nasdaq:NWS) (Nasdaq:NWSA) (ASX:NWS) (ASX:NWSLV) (www.newscorp.com). "Dow Jones Indexes" is a service mark of Dow Jones Trademark Holdings LLC and has been licensed for use by CME Group Index Services LLC.
"Dow Jones®", "Dow Jones Indexes" and all other index names listed above are service marks of Dow Jones Trademark Holdings LLC ("Dow Jones"), and have been licensed for use by CME Group Index Services LLC ("CME Indexes"). Investment products based on Dow Jones Indexes are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of Dow Jones, CME Indexes and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of a company in Dow Jones Indexes does not in any way reflect an opinion of Dow Jones, CME Indexes or any of their respective affiliates on the investment merits of such company. None of Dow Jones, CME Indexes or any of their respective affiliates is providing investment advice in connection with these indexes.
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