Russell Indexes reclassifies Greece from DM to EM

Greece will be downgraded from a developed to an emerging market when Russell Indexes carries out its annual index reconstitution.

The index maker said that the change follows a three-year market risk review process. It found that Greece did not meet macro and operational risk criteria for developed market status.

Russell’s country classifications are announced in March each year, and become effective when its reconstitution process completes in late June.

Russell Indexes senior research analyst Mat Lystra said: “Our analysis of Greece and conclusion to reclassify its market status has been guided by the rules-based, objective and transparent methodology for Russell Global Indexes.”

“Having a clear road map to follow and the global resources to carry out the level of ongoing analysis needed to evaluate Greece against the same risk and efficiency criteria among all countries in the Russell family of global indexes has been extremely helpful in this process.”


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