With separate index funds for 52 countries, State Street Global Advisors, Boston, is close to adding a few more, this time in "pre-emerging" markets.
The firm is close to creating of pre-emerging market index-type funds, Arlene M. Rockefeller, principal and head of global enhanced equities, said in an interview.
State Street is looking at starting funds for Botswana, Ghana, Ivory Coast, Kenya, Mauritius, Ecuador, Trinidad and Tobago, and Bangladesh.
To begin with, the firm likely would create three regional pre-emerging funds, placing the individual markets in their respective regions.
A major idea behind the pre-emerging funds is investors would gain a performance lift when these markets mature enough to be eventually added to one or more of the widely used emerging market indexes.
Unlike straight index funds, these new funds would invest in fixed income as well as equities to represent the markets.
State Street is evaluating the risk of the new funds, and could launch them soon, although no date has been set.
State Street now has index funds for 52 countries, generally offering two or three funds for each of the countries based on different indexes, such as those from the International Finance Corp. or Morgan Stanley Capital International.