The FTSE Frontier 50, a new index which begins calculating today, is FTSE's first index to be created from an eligible universe of 23 new frontier markets. Further regional and country indices for frontier markets will be launched in phases throughout the remainder of 2008 and into 2009.
FTSE's Frontier indices are integrated within GEIS by applying the same rules-based market classification framework as is currently in place for Developed and Emerging designations. This approach, unique amongst index providers, is of benefit to investors as it provides a single transparent structure to help investors manage their exposure to international markets as they become eligible for inclusion in the FTSE Global Equity Index Series as a Frontier Market, and as markets move up through Emerging and Developed status.
Commenting on today's expansion of the global equity index series to include Frontier markets, Mark Makepeace, FTSE's Chief Executive said, "Frontier equity markets today represent over USD1 trillion in capitalisation, and are becoming attractive investment destinations for a growing number of investors worldwide. By extending coverage within its Global Equity Index Series, FTSE can offer investors an objective and rules-based means of managing their exposure to new equity markets as they evolve their market infrastructures and regulatory environments."
The FTSE Frontier 50 index is calculated in real time and is designed to be used as the basis of financial products such as Exchange Traded Funds (ETFs), mutual funds, and derivatives products. -- www.ftse.com
