Saudi Arabia: the next emerging market

The June 2018 review of constituents for the main Emerging Markets Index has produced a few surprises.

The June 2018 review of constituents for the main Emerging Markets Index has produced a few surprises.

The MSCI Emerging Markets Index is one of the most important global stock market indices. JP Morgan, the US investment bank, estimates that nearly $1,500 billion is either benchmarked against the index or directly tracks it, so there can be considerable implications for stock markets if the constituent countries of the Index change.

Last year’s MSCI review saw Chinese mainland shares promoted to the Index, with that process now starting to take effect.

The 2018 review heralds two potential new arrivals in the MSCI Emerging Markets from May 2019:

Emerging markets have attracted considerable investor attention of late, partly because of China’s ascendancy, but also because they appear to offer better value than developed markets.

If you wish to consider the regularly evolving emerging markets investment options, please talk to us.

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