The S&P Next Emerging 40 is a tradable index comprised of 40 of the largest and most liquid equities issued by companies from countries including Chile, the Czech Republic, Indonesia, Malaysia, Mexico, the Philippines, Poland, Thailand and Turkey.
The index is licensed to Barclays Capital for the creation of structured investments and was launched in response to demand from investors wanting exposure to rapidly-expanding, smaller emerging markets.
The new index comes off the back of the index firm’s recent launches of the S&P CIVETS 60, providing exposure to 60 leading companies from Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa, and the S&P Access Africa.
“With the BRICs now established as a popular investment destination, investors are looking further afield to smaller, less-developed emerging markets which may have potential for growth,” said S&P Indices associate director of global equity indices Michael Orzano.
“Clients have picked up on emerging markets as a significant investment opportunity, although most EM exposure is heavily skewed to stocks from Brazil, Russia, India and China,” said Barclays Capital director in EFS structuring Benedict Redmond.
The new index presently consists of stocks including: America Movil SAB de CV ADR, MTN Group Ltd, KGHM Polska Miedz SA, Turkiye Garanti Bankasi, OTP Bank, CEZ Ceske Energeticke Zavody, Compania de Minas Buenaventura SAA, Genting Bhd and Enersis SA ADR.
