Markit Emerging Markets Index Goes Live
GEMX to boost investment in local currency EM debt
London and New York – Markit, the leading provider of independent data, portfolio valuations and OTC derivatives trade processing to the global financial markets, today announced it has started publishing index levels for the GEMX [1], a family of benchmark indices referencing emerging market debt denominated in local currencies.In February 2008, IFC, a member of the World Bank Group, announced the selection of Markit to develop a transparent index of emerging market local currency bonds. The index serves as a benchmark for the World Bank Group’s Gemloc program, an initiative designed to help emerging market countries attract more investment and develop their local currency bond markets.
As part of Gemloc, the World Bank Group selected PIMCO to develop and manage investment strategies that will promote institutional investment in the local currency bonds of emerging market countries.
Stephan Flagel, Managing Director and Head of Indices at Markit, said: “GEMX reflects the broad emerging markets while taking into account investability factors. It is independent, fully transparent and objective and we expect the index to become the benchmark for local currency emerging market debt and to attract global investors to this fast growing asset class.”
"The Gemloc program is designed to develop the local currency bond markets in emerging economies, and the GEMX index is an important part of that process. We are honored to be a part of the Gemloc program alongside Markit and the other Gemloc participants, and look forward to helping make the initiative a success," said Lori Whiting, Senior Vice President and Emerging Markets Product Manager at PIMCO.
All rules governing index membership and weightings are rules-based and publicly available. Published investability criteria, determined by CRISIL, in collaboration with IFC, are used to determine final country weightings.
The GEMX currently comprises twenty countries. Additional countries are expected to be included in the index later this year.
| Region | Countries | Weight % | Duration | No. of bonds |
| Asia | China, India, Indonesia, Malaysia, Philippines, Thailand | 31 | 4.83 | 90 |
| EMEA | Hungary, Poland, Russia, Slovakia, Turkey, Egypt, Morocco, Nigeria, South Africa | 44 | 4.15 | 118 |
| LatAm | Brazil, Chile, Columbia, Mexico, Peru | 25 | 4.0 | 49 |
| Total | 20 | 100 | 4.33 | 257 |
Markit calculates country, regional and overall indices and analytical values daily and publishes index levels on www.indexco.com. Bond prices are sourced from a combination of global investment banks and local institutions.
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[1] GEMX stands for the Markit iBoxx Global Emerging Markets Local Currency Bond Index in cooperation with IFC.
For further information, please contact:
Teresa Chick
Managing Director, Corporate Communications
Markit
Email: teresa.chick@markit.com
Telephone: +44-20-7260-2094
Caroline Lumley
Vice President, Corporate Communications
Markit
Email: caroline.lumley@markit.com
Telephone: +44-20-7260-2047
About Markit
Markit is the leading provider of independent data, portfolio valuations and OTC derivatives trade processing to the global financial markets. The company receives daily data contributions from 90 dealing firms, and its services are used by almost 1,000 institutions to enhance trading operations, reduce risk and manage compliance. For more information, see www.markit.com
About CRISIL
CRISIL is India's leading ratings, research, risk, and policy advisory company.
CRISIL offers domestic and international customers a unique combination of local insights and global perspectives, delivering independent information, opinions and solutions that help them make better informed business and investment decisions, improve the efficiency of markets and market participants, and help shape infrastructure policy and projects. For more information, visit www.crisil.com.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC's vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.
About the World Bank
The International Bank for Reconstruction and Development (World Bank) aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services. Established in 1944 as the original institution of the World Bank Group, IBRD is structured like a cooperative that is owned and operated for the benefit of its 185 member countries.