As an active manager focused on the emerging markets (EM), Mirae Asset not only looks at the current EM universe, but also at leading economies within the frontier index with forthcoming prospects for inclusion into the EM benchmarks. These high growth countries generally have significant momentum in terms of meeting the strict requirements for EM index inclusion by MSCI and/or FTSE Russell (FTSE).
Inclusion into the EM index is not easy to come by. A country must meet size and liquidity requirements, as well as specific conditions for market accessibility. These requirements bode well for research coverage, governance, and liquidity. In the past decade, MSCI has only upgraded three countries from frontier to emerging markets status: Qatar and the United Arab Emirates in 2014, and Pakistan in 2017.
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