EME Strategy: Argentina leaving FM equals inflows into European FM
In June 2018, the MSCI announced the upgrade of Argentina from Frontier Markets (FM) to the Emerging Markets (EM) universe along with its May 2019 Semi Annual Index Review (SAIR). This translates into an increase in the European FM’s weight in the FM universe and, consequently, inflows into local equities. According to our estimates, following Argentina’s upgrade to EM, Romania should be the sixth-largest FM worldwide. We also note that the MSCI launched consultations in June 2018 on the potential upgrade of Kuwait from FM to EM. If the index provider decides to proceed with the country’s reclassification (decision due in June 2019), the weight of European FM in the MSCI FM could increase further.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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