Newssos
South Korea's stock market has posted the strongest returns of any equity market globally, yet MSCI Chief Executive Henry Fernandez says it has not cleared the bar for developed market classification.
Fernandez said the Korean market still falls short of the standards MSCI applies when determining a market's status tier.
What MSCI's Classification Means for Investors MSCI's developed, emerging, and frontier market designations carry direct capital consequences.
Index-tracking funds are mandated to weight holdings according to the benchmarks their mandates reference, meaning a reclassification from emerging to developed market status shifts which pools of capital are eligible — and obligated — to own a market's equities.
Keep reading