MSCI International Equity Indices

Designed to represent the investable opportunity set for international investors, the MSCI International Equity Indices are the most widely used global benchmarks in the industry. They are used:

• to benchmark more than an estimated USD 3 trillion 
• by over 2,100 institutions globally 
• as the benchmark for over 90% of all international equity assets under management in the US¹.

Calculated since 1969, the indices have become integral tools in the investment process of international investors and are used:

• for research
• in asset allocation models
• to benchmark and conduct performance measurement analysis
• as the basis of index linked products such as indexed funds, exchange traded funds (ETFs), OTC and non-OTC derivatives, and futures and options contracts.

To be useful tools in the investment process, indices must reflect the relevant market, and be replicable and investable. To address this, MSCI Barra has evolved its index methodology over time. Examples include enhancing the methodology to reflect free-float adjusted market capitalization weighting in 2001/2002, and introducing comprehensive market cap segmentation and adding Emerging Markets Small Cap Indices in June 2007.

Since 1969, MSCI Barra's local research experts have applied a rigorous approach to data collection and quality control. Today the company has over 50 research and index specialists, gathering data and constructing indices across 68 markets.

The MSCI International Equity Indices consist of several index families, spanning 69 markets, designed to address the indexing and benchmarking needs of institutional investors across a range of investment styles.

MSCI Global Investable Market Indices

• Fully integrated family of broad and investable international equity indices, offering exhaustive coverage and non-overlapping size (large, mid and small cap), style and GICS® sector/industry segmentation.

MSCI Global Standard Indices

• Global regional and country indices covering:
  - 23 developed markets
  - 25 emerging markets
  - 22 frontier markets (* Saudi Arabia is currently not included in the MSCI Frontier Markets Index but is part of the MSCI GCC Countries Index. ** Lithuania and Serbia are currently stand-alone country indices and are not included in the MSCI Frontier Markets Index. The addition of these two countries to the MSCI Frontier Markets Index to coincide with the November 2008 Semi-Annual Index Review is under consideration and is subject to final determination by MSCI Barra.)
• Sector, industry group and industry indices classified according to the Global Industry Classification Standard (GICS®).

MSCI Global Small Cap Indices

• Indices covering small cap securities for:
  - 23 developed markets
  - 25 emerging markets
  - 6 GCC countries
• Sector, industry group and industry small cap indices classified according to the Global Industry Classification Standard (GICS®)
• Value and growth small cap indices for developed and emerging markets

MSCI Global Value & Growth Indices

• Global, regional, and country indices constructed according to each security's style characteristics.

MSCI Frontier Markets Indices

• Regional and country indices covering markets outside the traditional developed and emerging markets, including five Gulf Co-operation Council (GCC) countries

MSCI GCC Countries Indices

• Regional and country indices covering all the Gulf Co-operation Council (GCC) countries.

MSCI Euro & Pan-Euro Indices

• As of November 30 2007, the constituents and performance of these indices are the same as the MSCI EMU Large Cap and MSCI Europe Large Cap Indices, respectively. Prior to this date, the indices were subsets of the standard MSCI EMU and MSCI Europe Indices, respectively, designed to capture 90% of the market capitalization of the broader indices.

MSCI 10/40 Indices

• Indices designed for the benchmarking needs of UCITS compliant funds.

To find out more about the MSCI International Equity Indices, please contact us.

¹ Source: Intersec (2005)