Standard & Poor’s: Reclassification Of Israel To Developed Market Status

As previously announced on May 11, 2010, Standard & Poor’s will be reclassifying Israel as a developed market. The implementation of this change will be effective at the 2010 annual reconstitution, at the opening of September 20, 2010. The country will be added to Mid-East Africa Developed, a new developed market region within the S&P Developed BMI. It will also be part of the S&P EPAC BMI.

Preliminary analysis using May 31, 2010 pro-forma data indicates that the inclusion of Israel to the S&P Developed BMI Index will be of minimal impact to the overall index, given its relatively small weight in the index. Among the S&P Emerging BMI, Israel’s 3.0% weight will be distributed among other emerging markets with no country increasing by more than 0.6%. The tables below show the pro-forma weights of the S&P Developed BMI and the S&P Emerging BMI following the reclassification of Israel.

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