Colombia has risen from being an “emerging” to “frontier” market in the Dow Jones Indexes Country Classification System, the company announced Friday.
Dow Jones Indexes Country Classification System
The most accessible to, and supportive of, foreign investors with a high degree of consistency across these markets
Generally have less accessibility relative to developed markets, but demonstrate a level of openness
Are typically much less accessible to foreign investors, exhibit notable limitations in their regulatory and operational environments, and support a smaller investment landscape; Frontier Markets tend to be much less robust and in the earlier stages of development.
The company did not clarify why it upped Colombia’s status in its classification.
According to a press release, the “Dow Jones Indexes Country Classification System attempts to strike an appropriate balance between rules-based methodology that incorporates objective data with the subjective guidance of the Dow Jones Index Oversight Committee (DJIOC), which renders the final classification assignment decision for each country.”
According to the classification, emerging markets “generally have less accessibility relative to developed markets, but demonstrate a level of openness.”
Dow Jones Indexes introduced the country qualification system in December 2010. Colombia started off in the middle “emerging” category.
Dow Jones declined to enter into the specifics of what “tipped the scale” regarding the decision to classify Colombia as an “emerging” market, when contacted by Colombia Reports.
In our initial publication we erroneously published Colombia had gone from emerging to frontier. We apologize for the confusion.