London: FTSE Group, the global index provider, launched of the FTSE Frontier Markets Index Series, a set of benchmarks capturing the performance of large, mid and small cap securities from Frontier Markets. The new indices are separate but complementary to FTSE’s existing Developed and Emerging Market indices. Together the suite of indices will provide users with a complete range of global benchmarks.
The new Frontier Markets Index Series covers 26 countries defined as Frontier by FTSE’s country classification process, and will initially have 368 constituents.
Companies are screened for free float and liquidity, ensuring that the indices are relevant to international investors. The series can be segmented by size, region, country and industry sector, and is built to FTSE’s world class standards of index design.
“FTSE understands the need for an objective and consistent approach to the classification of markets as Developed, Advanced Emerging, Secondary Emerging or Frontier within global benchmarks. As a result, using a range of criteria which is developed in conjunction with international market participants, FTSE conducts an annual country classification review, which takes place every September.
“Managed in accordance with a transparent rule set, the FTSE Frontier Index Series has been designed as a performance benchmark and for use in the creation of index tracking products.”
“The FTSE Frontier Markets Index Series will provide investors with a comprehensive range of international markets benchmarks. As investment strategies continue to become more global, FTSE’s new series helps market participants to manage Frontier exposure with products based on our strong governance and transparency,” Marc De Luise, Director of Index Research, FTSE Group said.