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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?


To: Joss who wrote (9821)12/1/1997 7:31:00 PM
From: Mark Nelson  Read Replies (1) | Respond to of 18056
 
Joss,
Re: Barings Emerging Market indices/ charts

This is from the Barings site:

ingbank.com

There you will find an explaination for deriving a separate index for international investors. Here is part of it. (Emphasis mine)

"Foreign Available Market Capitalisation

Total market cap weighted indices in general provide a good representation of the underlying markets
for local or international investors in the relatively small number of major developed markets; markets
which have few foreign restrictions. However, they fail to do so in the numerous more restricted
emerging markets where often a large and variably defined proportion of the market cap is not
available to foreign investors.


Where international investors are benchmarked against the total local stock market capitalisation
rather than an adjusted foreign market capitalisation, there is a significant distortion between the
performance and risk of the foreign investor's portfolio and that of the underlying market.
ING Barings'
foreign available market capitalisation weighting largely corrects this distortion, and creates a
proportional weighting structure that reflects the emerging markets investment universe as it appears
to non-domestic investors.
**************************
I will try comparing the charts of Barings indices to charts of indices (past 30 days only) found at:

ebn.co.uk

Onward...
Mark