MSCI Regional Equity Indices

MSCI All Country (AC) Asia ex Japan Index
MSCI AC Far East ex Japan Index
MSCI AC Pacific Index
MSCI ACWI Index
MSCI Asia APEX 50 Index
MSCI BRIC Index
MSCI EAFE Index
MSCI EM Europe, Middle East and Africa Index
MSCI EM Latin America Index
MSCI Emerging Markets (EM) Index
MSCI EMU Index
MSCI Europe Index
MSCI Europe & Middle East
MSCI Frontier Markets Index
MSCI KOKUSAI Index
MSCI Pacific Index
MSCI World Index

MSCI Index Variants

MSCI All Cap Indices
MSCI Arabian Markets ex Saudi Arabia Index
MSCI Arabian Markets & Africa ex Saudi Arabia Index
MSCI Global Investable Market Indices
MSCI Global Standard Indices
MSCI Global Small Cap Indices
MSCI Global Value and Growth Indices
MSCI Micro Cap Indices
MSCI Price Indices
MSCI Total Return Indices
MSCI Gulf Cooperation Council (GCC) Countries ex Saudi Arabia Index
MSCI Gulf Cooperation Council (GCC) Countries

Definition of Terms for MSCI Equity Indices

All Country (AC) Indices
Country Indices
Developed Markets (DM), Emerging Markets (EM) and Frontier Markets (FM) Coverage Indices
Pro Forma Data
Regional and Composite Indices
Free Indices
Provisional Indices 

MSCI Regional Equity Indices

The MSCI AC (All Country) Asia ex Japan Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of Asia, excluding Japan. The MSCI AC Asia ex Japan Index consists of the following 10 developed and emerging market country indices: China, Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, and Thailand*.

The MSCI AC (All Country) Far East ex Japan Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the Far East, excluding Japan. The MSCI AC Far East ex Japan Index consists of the following 9 developed and emerging market country indices: China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, and Thailand*.

The MSCI AC (All Country) Pacific Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the developed and emerging markets in the Pacific region. The MSCI AC Pacific Free Index consists of the following 12 developed and emerging market countries: Australia, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand*.

The MSCI ACWI Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 45 country indices comprising 24 developed and 21 emerging market country indices. The developed market country indices included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. The emerging market country indices included are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey*.

The MSCI Asia APEX 50 Index is a free float-adjusted, market capitalization weighted index. The index aims to serve as a liquid proxy to the broader MSCI AC Asia ex Japan Index, a benchmark index widely followed by investors investing in Asia. The index captures the performance of the 50 largest stocks in the Asia ex Japan region and is optimized for tradability. The MSCI Asia APEX 50 Index was created to serve as the basis for investment products such as exchange traded and OTC derivative contracts, exchange traded funds and other passive vehicles.

The MSCI BRIC Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the following four emerging market country indices: Brazil, Russia, India and China.

The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. The MSCI EAFE Index consists of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom*.

The MSCI EM (Emerging Markets) Europe, Middle East and Africa Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the emerging market countries of Europe, the Middle East & Africa. The MSCI EM EMEA Index consists of the following 8 emerging market country indices: Czech Republic, Hungary, Poland, Russia, Turkey, Egypt, Morocco, and South Africa*.

The MSCI EM (Emerging Markets) Latin America Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of emerging markets in Latin America. The MSCI EM Latin America Index consists of the following 5 emerging market country indices: Brazil, Chile, Colombia, Mexico, and Peru*.

The MSCI EMU (European Economic and Monetary Union) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of countries within EMU. The MSCI EMU Index consists of the following 11 developed market country indices: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Portugal, and Spain*.

The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey*.

The MSCI Europe Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the developed markets in Europe. The MSCI Europe Index consists of the following 16 developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom*.

The MSCI Europe & Middle East Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the developed markets in Europe and the Middle East.The MSCI Europe & Middle East Index consists of the following 17 developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Israel, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom*.

The MSCI Frontier Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of frontier markets. The MSCI Frontier Markets Index consists of the following 25 frontier market country indices: Argentina, Bahrain, Bangladesh, Bulgaria, Croatia, Estonia, Jordan, Kenya, Kuwait, Lebanon, Lithuania, Kazakhstan, Mauritius, Nigeria, Oman, Pakistan, Qatar, Romania, Serbia, Slovenia, Sri Lanka, Tunisia, Ukraine, United Arab Emirates, and Vietnam. The MSCI Saudi Arabia Index is currently not included in the MSCI Frontier Markets Index but is part of the MSCI Gulf Cooperation Council (GCC) Countries Index. The MSCI Bosnia Herzegovina Index, the MSCI Botswana Index, the MSCI Ghana Index, the MSCI Jamaica Index, MSCI Trinidad  & Tobago and the MSCI Zimbabwe Index are currently stand-alone country indices and are not included in the MSCI Frontier Markets Index. The addition of these country indices to the MSCI Frontier Markets Index is under consideration*.

The MSCI KOKUSAI Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets excluding Japan. The MSCI KOKUSAI Index consists of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States*.

The MSCI Pacific Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the developed markets in the Pacific region. The MSCI Pacific Index consists of the following 5 Developed Market countries: Australia, Hong Kong, Japan, New Zealand, and Singapore*.

The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of the following 24 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States*.

MSCI Index Variants

The MSCI All Cap Indices include large, mid, small and micro cap segments and provide exhaustive coverage of these size segments across 24 Developed Markets countries, 26 Developed Markets regions and 19 All Country composites. The All Cap indices target 99.8% coverage of the Developed Markets equity universe.

The MSCI Arabian Markets ex Saudi Arabia Index covers 10 equity markets. The index aims to represent the universe of companies in the MSCI GCC countries ex Saudi Arabia Index (United Arab Emirates, Kuwait, Qatar, Bahrain and Oman) plus Jordan, Egypt, and Morocco, Tunisia and Lebanon.

The MSCI Arabian Markets & Africa ex Saudi Arabia Index covers 14 equity markets: United Arab Emirates, Kuwait, Qatar, Bahrain, Oman, Jordan, Egypt, and Morocco, Tunisia, Lebanon, South Africa, Kenya, Nigeria and Mauritius.

The MSCI Global Investable Market Indices (IMI) include large, mid cap and small cap segments and provide exhaustive coverage of these size segments by targeting a coverage range of close to 99% of the free float-adjusted market capitalization in each market. The Large Cap Indices target a coverage range of about 70% of the free float-adjusted market capitalization in each market; the Mid Cap Indices target a coverage range of about 15% of the free float-adjusted market capitalization in each market; and the Small Cap Indices target a coverage range of about 14% of the free float-adjusted market capitalization in each market.

The MSCI Global Standard Indices include large and mid cap segments and provide exhaustive coverage of these size segments. The indices target a coverage range of around 85% of the free float-adjusted market capitalization in each market. The Large Cap Indices target a coverage range of around 70% of the free float-adjusted market capitalization in each market and the Mid Cap Indices target a coverage range of around 15% of the free float-adjusted market capitalization in each market.

The MSCI Global Small Cap Indices provide an exhaustive representation of the small cap size segment. The indices target companies that are in the Investable Market Index (IMI) but that are not in the Standard Index in each market. The indices cover 24 Developed Markets, 21 Emerging Markets and 26 Frontier Markets.

The MSCI Global Value and Growth Indices cover the full range of MSCI Developed, Emerging and All Country Indices across large, mid and small cap size segmentations. They are also cover large and mid cap size segments for the MSCI Frontier Markets Indices. The indices are constructed using an approach that provides a precise definition of style using eight historical and forward-looking fundamental data points for every security. Each security is placed into either the Value or Growth Indices, or may be partially allocated to both (with no double counting). The objective of this index design is to divide constituents of an underlying MSCI Equity Index into respective value and growth indices, each targeting 50% of the free float adjusted market capitalization of the underlying market index.

The MSCI Micro Cap Indices provide exhaustive coverage of over 4,800 securities across 24 Developed Markets and target coverage of approximately 1% of the equity capitalization in those markets.

The MSCI Price Indices measure the price performance of markets without including dividends. On any given day, the price return of an index captures the sum of its constituents’ free float-weighted market capitalization returns.

The MSCI Total Return Indices measure the price performance of markets with the income from constituent dividend payments. The MSCI Daily Total Return (DTR) Methodology reinvests an index constituent’s dividends at the close of trading on the day the security is quoted ex-dividend (the ex-date).

Two variants of MSCI Total Return Indices are calculated:

• With Gross Dividends:
  Gross total return indices reinvest as much as possible of a company’s dividend distributions. The reinvested amount is equal to the total dividend amount distributed to persons residing in the country of the dividend-paying company. Gross total return indices do not, however, include any tax credits.
• With Net Dividends:
  Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties.

The MSCI Gulf Cooperation Council (GCC) Countries ex Saudi Arabia Index aims to represent the universe of companies in 5 equity markets: United Arab Emirates, Kuwait, Qatar, Bahrain and Oman.

Definition of Terms for MSCI Indices

All Country (AC) Indices
MSCI All Country Indices include both Developed Markets and Emerging Markets countries across particular regions. For example, the MSCI All Country Far East Index includes Developed Markets countries such as Hong Kong and Singapore along with Emerging Markets countries such as Indonesia and Thailand. The MSCI ACWI Index covers 45 countries.

Country Indices
To construct a country index, every listed security in the market is identified. Securities are free float adjusted, classified in accordance with the Global Industry Classification Standard (GICS®), and screened by size, liquidity and minimum free float.

Developed Markets (DM), Emerging Markets (EM) and Frontier Markets (FM) Coverage Indices
MSCI covers 24 Developed, 21 Emerging and 26 Frontier Markets countries. If the name of a regional or composite index does not contain a designation (such as 'EM' or 'AC'), the index includes only Developed Markets countries.

MSCI Free Indices
MSCI maintains certain Developed Market indices with the suffix “Free”, including: the MSCI Singapore Free, the MSCI EAFE Free, the MSCI World Free, the MSCI Pacific Free, the MSCI Pacific Free ex Japan and the MSCI Far East Free Indices.

The continued use of the "Free" suffix serves to indicate that these indices have somewhat different histories than their counterpart indices without the "Free" suffix. This is because historically the MSCI Free Indices included adjusted free float calculations to capture investment restrictions once imposed on foreign investors in Singapore, Switzerland, Sweden, Norway and Finland.

Today the MSCI Free Indices have the same constituents and performance as those without the “Free” suffix.

Pro Forma Data
After each Quarterly and Semi-Annual Index Review, MSCI announces the index changes that will take place on the rebalancing date and provides pro forma data to help index subscribers understand the anticipated changes. The pro forma data provided reflects the scheduled changes as if they were implemented on the date of the announcement.

Pro forma index data is made available for many MSCI indices, including all major regional indices. The data include market capitalization, number of securities and sector and industry weights. In addition, pro forma weights are provided for the largest additions to the indices, as well as the largest increases and decreases in security weights.

Of course at the rebalancing date, the characteristics of any MSCI index will vary from the released pro forma data due to various factors that may take place in the interim, including price movements, capital changes and corporate events.

Regional and Composite Indices
MSCI upholds a consistent index construction and maintenance methodology for its individual country indices so that they can be combined into various regional and composite indices. This rigorous methodology is critical for calculating combined Developed and Emerging Markets indices such as the series of MSCI All Country Indices.

Regional and composite MSCI indices are usually aggregations of individual markets with one exception. The MSCI Provisional Europe Index is constructed by treating Europe as a single market. To create this index, the securities in all the Developed Markets (DM) countries in Europe are aggregated into a single market. Subsequently, individual DM Europe country indices within the MSCI Provisional Europe Index are derived from the constituents of the MSCI Provisional Europe Index.

*As of May 30, 2011