The Global X FTSE Greece 20 ETF (NYSE:
), the lone ETF devoted to the now infamous debt-laden PIIGS
nation, could lose its largest holding, Coca-Cola Hellenic
). Last month, the company announced it was looking to shift its
listing to the London Stock Exchange from the Athens Stock
"In October, 2012, Coca-Cola Hellenic announced plans to move
its primary listing from ASE to the London Stock Exchange, to
seek approval to have a secondary listing on the ASE, and move
its headquarters from Athens to Switzerland. The completion of
these transactions may result in Coca-Cola Hellenic no longer
meeting the Index Provider's criteria for inclusion in the
"As a result, the Fund may need to reduce or eliminate its
holdings in Coca-Cola Hellenic. The removal of Coca-Cola Hellenic
from the Underlying Index and the resulting reduction or
elimination of the Fund's holdings in Coca-Cola Hellenic may have
an adverse impact on the liquidity of the Fund's underlying
portfolio holdings and on Fund performance,"
according to a supplement to GREK's prospectus
was also reported by Index Universe
, which noted Global X expects Coca-Cola Hellenic to remain part
of the FTSE/ATHEX 20 Capped Index "for now."
In October, Benzinga reported that Coca-Cola Hellenic's
could hasten Greece's demotion to emerging market
from developed market
Coca-Cola Hellenic, the world's second-largest bottler of the
popular soda, accounted for 18.4 percent of GREK's weight as of
according to Global X data
. GREK's next largest holding is National Bank of Greece (NYSE:
) at almost 11.6 percent.
Earlier this year, index provider MSCI (NYSE:
) put Greece on its list for possible reclassification down to
emerging markets status.
"In addition, the Greek equity market is the only Developed
Market in which in‐kind transfers and off‐exchange transactions
are prohibited and stock lending as well as short selling
practices are not well established. This has created significant
concerns for market participants and in particular for passive
portfolio managers. The Greek authorities have not been receptive
to repeated complaints from the international investment
community and did not manage to bring equity market regulations
and practices in line with the evolving standards of Developed
Markets," MSCI said in June.
In September, FTSE Group, the index provider for GREK, said
Greece is on the firm's list for possible reclassification to
advanced emerging markets status, according to Index
GREK, which has $20.2 million in assets under management, has
gained almost nine percent year-to-date.
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