Index and investment support provider MSCI has launched a new index for the frontier markets, the MSCI Frontier Markets 100 Index, consisting of 100 of the largest and most liquid stocks.
MSCI already offers a broader frontier markets index, but the new index is intended to be a more representative and easily replicable alternative. It aims to provide broad coverage of frontier markets, with a strong emphasis on tradability.
MSCI Index Business managing director, Baer Pettit, said: “We have seen significant demand from clients around the world for a more tradable version of our MSCI Frontier Markets Index – especially from those who face various obstacles in replicating broader frontier markets indices. We expect that the MSCI Frontier Markets 100 Index will serve as the basis for numerous index-linked investment vehicles, ultimately providing investors with new ways to gain exposure to the frontier markets. For example, the index will be used by BlackRock for a forthcoming iShares ETF.”