JP Morgan Launches Emerging Market Index
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NEW YORK, June 14/PRNewswire/ -- - Latest addition to JPMorgan's renowned family of fixed income indices JPMorgan today announced the introduction of the first global comprehensive local emerging markets index. The new index, named the JPMorgan Government Bond Index-Emerging Markets (GBI-EM), is a definitive local emerging markets debt benchmark that tracks local currency government bonds issued by emerging markets. JPMorgan created the GBI-EM as local instruments enter the mainstream of investors' decisions. The introduction of the GBI-EM responds to the increasing demand for local instruments, as emerging economies look increasingly towards the domestic market for sources of finance. The focus on local markets is expected to continue as on-shore and off-shore investors seek to diversify into new asset classes. With the GBI-EM we will provide investors with a well-defined and diligently-managed benchmark for local issues within the emerging markets universe, Gloria M. Kim, Vice President and manager of JPMorgan's emerging markets index products, said. "It continues a legacy of premier index products developed by JPMorgan and underscores the firm's dedication to developing emerging markets," Kim said. As external debt spreads compress and opportunities seem more appealing in local rates, the likely combination of increasing demand and supply should pave the way for deeper and broader local markets, which the GBI-EM will attempt to capture, Drausio Giacomelli, Head of Latin America Local Markets Research, said. The GBI-EM closely follows the methodology of JPMorgan's family of GBI indices, which are widely used as benchmarks for investors in developed market government bonds. The GBI-EM aggregates countries from the GBI universe that meet our criteria for an emerging market resulting in 19 countries from 4 regions. Countries included are Czech Republic, Hungary, Poland, Turkey, Russia, Brazil, Chile, Colombia, Mexico, China, India, Indonesia, Malaysia, Thailand, Hong Kong, Singapore, South Korea, Israel, and South Africa. We are also working on a "Diversified" version of the index to provide a better distribution of weights among the countries. The GBI-EM consists of regularly traded, liquid fixed-rate, domestic currency government bonds to which international investors can gain exposure. We have available variations of the index in order to allow investors to select the most appropriate benchmark for their objective - from an an all-encompassing version that includes a broader list of local markets to a limited one which includes only the open, non-constrained markets. Daily historical index levels and statistics are available from December 31, 2001. Clients and investors can access index levels and statistics for the GBI-EM on www.morganmarkets.com, Bloomberg page JPMX, and Reuters page EMBI01. [Countries included are:- Hong Kong, Korea, Singapore, Indonesia, Malaysia, Thailand, Chile, Colombia, Mexico, Czech Republic, Hungary, Poland, Turkey, Israel, South Africa, Brazil, Russia, China, India] About JPMorgan Chase & Co. JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.2 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers and businesses, financial transaction processing, asset and wealth management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. has its corporate headquarters in New York and its U.S. retail financial services and commercial banking headquarters in Chicago. Under the JPMorgan, Chase and Bank One brands, the firm serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients. Information about the firm is available at www.jpmorganchase.com.
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