MSCI Upgrades Bulgaria to Frontier; Vietnam, Argentina Unchanged

MSCI Inc. upgraded Bulgaria to its Frontier Markets index, a reclassification that took effect on May 31, 2024. This move signifies a higher level of market development and accessibility for international investors compared to its previous classification. Concurrently, MSCI confirmed that Argentina and Vietnam will retain their current classifications within the Emerging Markets index, with no changes to their status. The decision regarding Argentina was influenced by ongoing concerns regarding market accessibility and the efficiency of capital flows, as detailed in MSCI's May 2024 market classification review. Similarly, Vietnam's classification remains unchanged due to persistent foreign exchange control issues and the need for further improvements in settlement efficiency. MSCI's market classification framework categorizes countries into Developed, Emerging, Frontier, and Standalone Markets, based on criteria such as economic development, market size and liquidity, and market accessibility for foreign investors. The review process involves extensive consultation with market participants and aims to reflect the evolving characteristics of global equity markets.