JPMorgan adjusts emerging market bonds index

JPMorgan Chase is to adjust the criteria for its emerging market bond index by lowering the issuer cap on its GBI-EM Global Diversified index from 10% to 9% in 2026. Large issuers such as Indonesia, Malaysia, Mexico, China, and India will see their share of the index fall, with smaller issuers such as Thailand, Poland, South Africa, and Brazil seeing more representation in the index.

The adjustment is designed to give investors a more balanced spread across regions by limiting heavyweight countries and reducing concentrated risks. The cap cut will mean index-tracking funds and ETFs will need to rebalance their portfolios.