Dow Jones Indexes said that all countries included in the indexes will be researched individually and assessed according to a pre-defined framework built around the needs of international portfolio investors in three categories: market and regulatory structure, trading environment and operational efficiency.
Assessments of the countries will be monitored on an ongoing basis, and include quantitative and qualitative elements leveraging internal and external resources.
Dow Jones Indexes president Michael Petronella said that assessing the practical considerations within country markets is a primary focus of the classification process. This new country classification system strikes the appropriate balance between a rules-based methodology and the subjective guidance of highly experienced index oversight team.
The new country classification system will be rolled out in stages to the full suite of Dow Jones indexes beginning with the March 2011 review.
