JPMorgan to add Philippines, Saudi Arabia to EM bond index
In short
JPMorgan said it will add Saudi Arabia and the Philippines to its emerging market debt index starting in 2027.
The change will happen over 10 months. The move matters because it can shift how much money index-linked investors put into those bonds.
What the reporting says
JPMorgan has announced plans to include Saudi Arabia and the Philippines in its emerging market debt index starting in 2027. The Saudi riyal-denominated sukuk and Philippine peso-denominated government bonds will be added over a ten-month period, while the index’s maximum country weight limit is set to fall from 10% to 9%. Saudi Arabia’s weight is expected to reach 2.71% and the Philippines’ 1.64%.
Why it matters
JPMorgan announced a planned expansion of its emerging market debt index to include Saudi Arabia and the Philippines starting in 2027. The riyal sukuk and peso government bonds will be phased in over ten months, and the maximum country weight limit will move down to 9% from 10%. The change can affect demand from investors that track the index and the relative weights of the two countries.