FTSE Announces Country Classification Changes

September 20, 2011 (PLANSPONSOR.com) - Global index provider FTSE has announced the results of its 2011 Country Classification Annual Review.
The FTSE Country Classification Annual Review, carried out every September, is the process by which global equity markets are classified as Developed, Advanced Emerging, Secondary Emerging or Frontier within the FTSE Global Equity Index Series. As a result of the 2011 annual review, Thailand will move from Secondary to Advanced Emerging and Ghana will be included as a Frontier market

According to a press release, the change to Thailand’s market status will be implemented in the FTSE Global Equity Index Series in March 2012. The inclusion of Ghana as a Frontier market will take effect from June 2012.

FTSE also maintains a Watch List of countries that are being considered for promotion or demotion between the various market classifications.

FTSE Watch List  

The FTSE Policy Group gave careful consideration to the continued status of Greece on the Watch List, the announcement said. The progress made by the Hellenic authorities against certain criteria was noted, but improvement in other areas was considered to have been slow and Greece fails to meet the criteria in four areas. The Policy Group has therefore determined to review the status of Greece against the remaining outstanding criteria again in March 2012.  Greece will remain on the Watch List for possible demotion to Advanced Emerging status.

Other changes made following this year's review were as follows: Poland will join the Watch List for possible promotion to Developed, and the Ukraine for possible inclusion as a Frontier market; Colombia will be removed from the Watch List, and China 'A' Shares, Greece, Kazakhstan, Kuwait and Taiwan will remain on the Watch List.

In addition, FTSE is considering:

  • China 'A' Share: Possible inclusion as Secondary Emerging, 
  • Kazakhstan: Possible inclusion as Frontier, 
  • Kuwait: Possible inclusion as Secondary Emerging, 
  • Poland: Possible promotion from Advanced Emerging to Developed, 
  • Taiwan: Possible promotion from Advanced Emerging to Developed, and 
  • Ukraine: Possible inclusion as Frontier. 

FTSE said it remains cognisant of difficult market conditions, and will continue to closely monitor Watch List countries' progress against the quality of markets criteria. FTSE will provide the market with a formal update in March 2012, and the next review of the FTSE Watch List markets will take place in September 2012.   

Full details of the countries on the Watch List are available at http://www.ftse.com/country.