Senior figures mull implications of MSCI reclassification

Benchmark-aware portfolio managers around the world are waiting eagerly to hear whether MSCI is going to reclassify Korea and Taiwan to developed-market status this week. The index provider is due to make its pronouncement tomorrow, and given that the two nations represent 14.8% and 11.6% of the MSCI Emerging Markets Index respectively (behind only China and Brazil in weighting), positive decisions would herald significant changes in capital flows. The resulting rebalancing of ETF…