Bangkok--7 Sep--Standard & Poor's
Many emerging economies are rapidly moving up the ladder of economic development, accelerating their pace of change and, in some cases, becoming destinations for significant foreign equity investment, says a report published Aug. 30, 2006, on RatingsDirect.
In the report, titled, "Behind The Boom In Emerging Markets Equity Investing," Alka Banerjee, Vice President, Index Services, at Standard & Poor's, details these and other observations, including results from a recent global survey of 175 emerging market fund managers. The survey, focusing specifically on equity markets, was conducted by Standard & Poor's in August 2006 to learn where individual emerging economies stand today in the eyes of professional global investors.
"Institutional and retail investors alike are taking note of emerging market equities and adding them to their portfolios," says Ms. Banerjee. "Stocks registered on emerging market exchanges now account for 16% of all global equities, and our research indicates that global investors are increasingly availing themselves to these investment opportunities, often higher rates of risk notwithstanding."
In her analysis, Ms. Banerjee also discusses how the definition of emerging market is changing; what is behind its phenomenal growth, both in terms of size and liquidity during the past 25 years; reasons for the differences in various markets' performance, volatility, and risk during this period; and the distance still to be covered before an emerging market can be considered fully "developed".
The article is part of a special report, "Emerging Markets: Changing The Rules Of The Game," published dually on RatingsDirect, the real-time, Web-based source for Standard & Poor's credit ratings, research, and risk analysis, and, in the Sept. 13, 2006, issue of Standard & Poor's CreditWeek. The report, developed in advance of this year's annual meeting of the World Bank and International Monetary Fund in Singapore, examines the broad emerging market landscape, including the roles that government regulations on investment, public/private partnerships, structured finance, and project financing are playing to boost GDP development.
The report is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com . If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to [email protected] . Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com ; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Members of the media may request a copy of this report by contacting the media representatives provided.
Media Contacts:
Michael Privitera, New York (1) 212 438-6679
[email protected]
Martin Winn, London (44) 20-7176-3740
[email protected]
Analyst Contact:
Alka Banerjee, New York (1) 212 438-3536