The planned transition of Saudi Arabia to Secondary Emerging market status within FTSE GEIS will resume in September 2019.
Tranche 4 will see an inclusion factor of 25%, bringing the total phasing to 75%. The fifth and final tranche is set for March 2020.
FTSE Russell proposes an implementation process in several tranches to ensure mechanisms are operating as expected, thereby minimizing price pressure on new constituents and to spread outflows from those markets being sold down.
Reclassification | March 2019 | April 2019 | June 2019 | September 2019 | March 2020 |
Secondary Emerging in 5 Tranches | Tranche 1: 10% | Tranche 2: 15% | Tranche 3: 25% | Tranche 4: 25% | Tranche 5: 25% |
Year-to-date, the FTSE Saudi Arabia Index returned 14.5%1 outperforming the FTSE Emerging Index which returned 11.9%1
For investors interested in accessing the potential performance of Saudi equity, FTSE Russell has licensed the FTSE Saudi Arabia Index to Nasdaq Dubai. In February 2019, the local exchange launched Futures contracts on the index. In a series of video interviews, Gary Rynhoud, head of Middle East and Africa, FTSE Russell, explains the country classification process.
(1) Performances as of June 2019
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NASDAQ DUBAI'S EQUITY FUTURES INTERVIEWS
FTSE RUSSELL'S LICENSING TO NASDAQ DUBAI
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SAUDI ARABIA RECLASSIFICATION FAQ
NASDAQ DUBAI'S EQUITY FUTURES INTERVIEWS