FTSE Russell launches frontier emerging govies index
The FTSE Frontier Emerging Government Bond Index Series will track frontier emerging markets and provides performance metric for high yielding and expanding part of the global markets. At the launch of the index, frontier countries such as Bangladesh, Costa Rica, Dominican Republic, Egypt, Ghana, Kenya, Morocco, Nigeria, Pakistan, Serbia, Sri Lanka, Ukraine, and Vietnam, are covered.
This series will include a market value weighted index and a 10% country capped index. It will also measure the performance of 13 fixed-rate, local currently government bond markets under its Frontier Emerging Market classification. As of June 2021, the total market value for bonds in this index is approximately $414.8 billion and $377.8 billion of par value with a weighted average coupon of 9.98%. Market inclusion is reviewed semi-annually in March and September.
Colchester Global Investors were the first to license this index as the basis for a new fixed income strategy, which is available to institutional investors.