WASHINGTON: The Vanguard Emerging Markets Index Fund has begun investing in stocks of companies in Chile, Peru and India as of May 1, 2003, in keeping with revisions made by Morgan Stanley Capital International Inc. (MSCI) to its select emerging markets free index, the company announced. The index, and subsequently the fund, has also eliminated its five percent cash position. The Vanguard Emerging Markets Index Fund tracks the MSCI select emerging markets free index. The select index excludes certain countries found in the MSCI Emerging Markets Free Index -- Colombia, Jordan, Malaysia, Pakistan, Russia, Sri Lanka and Venezuela -- because of concerns about liquidity, repatriation of capital, or entry barriers in those markets. MSCI administers the select index exclusively for Vanguard and periodically adjusts the list of included countries to keep pace with evolution in world markets. The countries added to the index -- Chile, Peru, and India -- have all recently liberalised regulations that had previously impeded foreign investments. These additions bring the number of countries in the index to 17. The Vanguard Group, headquartered in Valley Forge, Pennsylvania, is the nation's second largest mutual fund firm and a provider of company sponsored retirement plan services. The company serves some 17 million share holder accounts and manages $585 billion in U.S. assets, including over $180 billion in employer-sponsored retirement plans. It offers 112 funds to U.S. investors and 36 additional funds in foreign markets.
Source: IANS