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 by over 2,300 organizations 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 more than 70 markets.
The MSCI International Equity Indices consist of several index families, spanning 75 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.
- Global regional and country indices covering:
- 23 developed markets
- 22 emerging markets
- 30 frontier markets (The MSCI Saudi Arabia Index is currently not included in the MSCI Frontier Markets Index but is part of the MSCI GCC Countries Index. **The MSCI Bangladesh Index, the MSCI Botswana Index, the MSCI Ghana Index, and the MSCI Jamaica 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.) - Sector, industry group and industry indices classified according to the Global Industry Classification Standard (GICS®).
- Indices covering small cap securities for:
- 23 developed markets
- 22 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.
- Regional and country indices covering markets outside the traditional developed and emerging markets, including five GCC countries
- Regional and country indices covering all the GCC countries.
- 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.
- 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 Research (December 2005)
