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Investing April 12, 2001
MSCI Indices Reweighted
April 12, 2001 (PLANSPONSOR.com) - Morgan Stanley
Capital International (MSCI) has moved Greece to its
developed market index from its emerging market index and
added Egypt and Morocco to its emerging market free
index.
Reported by Nevin E. Adams
The changes will be effective May 31. The widely expected action expands the range of portfolio managers who can consider holding the stocks of these countries in their funds, since MSCI indices are widely used benchmarks for international equity investment.
Capitalization shifts
The emerging market free index will see a net decrease of 4.7% in market capitalization, as the MSCI Greece and Sri Lanka Indices exit and the MSCI Egypt and Morocco Indices join the emerging market index, according to Reuters.
Reclassifying the Greece Index into the developed market index results in a net market capitalization increase of 0.5% in the MSCI Europe Index and 0.4% in the MSCI EAFE Index.
MSCI added two companies within the Greece index and deleted 23, bringing the total number of securities in the Greece index to 24.
All of the securities in the MSCI Greece Index will be adjusted for the free float available to foreign investors.
Four companies were added to the Morocco index and none deleted, leaving 12 in the country index. One company was added to Egypt’s index and two deleted, bringing the total number of securities in the rebalanced index to 14.