JP Morgan Chase Bank announced its intention to add Saudi government bonds denominated in riyals to its emerging markets index at the beginning of next year.
This step will be implemented gradually starting next January, when the weight of Saudi bonds is expected to reach approximately 2.5% of the total index.
This measure is expected to contribute to increasing the volume of foreign investments, especially by investment funds that rely on global indices.
The bank stated that this gradual addition aims to reduce the risks associated with immediate implementation for investors who rely on the index, in light of the current market conditions.
The bank explained that this index is considered a reference for investment funds that manage assets worth more than $200 billion.
The bank also announced the addition of local currency-denominated bonds from the Philippines to its widely followed emerging markets index at the beginning of next year as well. According to Bloomberg, this step would attract foreign investments and contribute to supporting the Philippine economy.
The bank indicated that these Philippine bonds will be gradually added to the JPMorgan Emerging Markets Government Bond Index starting January 29, reaching a weight of 1.78%.
