MSCI Amendments to the MSCI equity index rebalancing policy.Business Editors GENEVA--(BUSINESS WIRE)---May 28, 2002 This announcement provides details of the amendments to the MSCI Equity Index rebalancing Rebalancing The process of realigning the weightings of one's portfolio of assets. Notes: For example, if your portfolio's proportion of stock has grown too large for your intended assets weightings and risk tolerance, you might rebalance by selling some stock and putting policy, following a period of formal consultation on the MSCI index rebalancing policy. Effective on June 1, 2002, the MSCI Standard Equity Index Series will be rebalanced according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the following principles: Full country index reviews Full country index reviews will be conducted annually, for all developed and emerging market countries simultaneously, and resulting changes will be implemented each year at the end of May. The annual full country index review involves a systematic re-assessment of the various dimensions of the equity universe. This includes a re-appraisal of the free float-adjusted industry group representation within each country compared with the target of 85%, a detailed review of the shareholder information used to estimate free float Free float An exchange rate system characterized by the absence of government intervention. Also known as clean float. for constituent and non-constituent securities, updating of minimum size guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. for new and existing constituents as well as changes typically considered for quarterly index reviews as discussed below. Quarterly index reviews Quarterly index reviews will be carried out at the end of February, August, and November to reflect important market driven changes that were not captured in the index at the time of their actual occurrence and should not wait until the full country index review due to their importance. These quarterly index reviews may result in additions or deletions, and changes in Foreign Inclusion Factors (FIFs) or number of shares. Please note that most event-related changes, such as mergers and acquisitions will continue to be implemented on their effective dates. Following these amendments, Section 3 of the Enhanced Methodology Book, titled "Maintaining the Indices", has been updated. It provides the full description of the changes that will be reflected at the quarterly index review and those which will be implemented at the annual full country index review. This updated section is available on MSCI's website at http://www.msci.com/stdindex. The amended equity index rebalancing policy offers several benefits. First, it improves the transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. of the timing and frequency of the index rebalancing process. Second, it clearly distinguishes between significant changes that should to be reflected earlier than at a full country review in order to keep the country index current, and other changes that can be aggregated and reflected at the time of the annual country review. For instance, changes resulting from corporate events not already reflected at the time of the event or changes associated with other recent market developments of a permanent nature, will be rapidly reflected in the index in a quarterly index review. On the other hand, changes associated with a progressive market evolution or with the disclosure of new information not related to a recent event, or resulting from the application of index construction guidelines do not require such a rapid implementation. They will be reflected in the country index at the time of the full country index review. The third benefit is that the distribution of changes in the indices between the quarterly index reviews and the annual full country index reviews will help in reducing the concentration of turnover at the annual full country index reviews. Please note that for any given country, it is possible that the impact of a quarterly index review will be larger than the impact of the annual full index review. Finally, this new equity index rebalancing policy seeks to minimize the overall turnover of all the composites, such as the MSCI ACWI ACWI Advisory Committee on Water Information ACWI All Country World Index Free Index, MSCI World Index See Morgan Stanley Capital International World Index. , MSCI EAFE The MSCI EAFE (NYSE: EFA) is a stock market index of foreign stocks, from the perspective of a North American investor. The index is market capitalization weighted (meaning that the weight of securities is determined based on their respective market capitalizations. Index, and MSCI EMF emf: see electromotive force. (1) (ElectroMagnetic Field) See electromagnetic radiation. (2) (Enhanced MetaFile) See Windows metafile. Index, by rebalancing all country indices within all composites simultaneously. The amendments to this index rebalancing policy also affect the rebalancing schedule of the MSCI Value and Growth Index Series and the MSCI Pan-Euro and Euro Indices. For completeness, the rebalancing schedule for all the MSCI Equity Indices is summarized below: Index Series Frequency Timing MSCI Standard Equity Index Series Annual/Quarterly May/Feb, Aug & Nov MSCI Pan-Euro and Euro Indices Annual May MSCI GDP Index Series Annual May MSCI Value and Growth Index Series Semi-annual May and November MSCI Small Cap Index Series Semi-annual May and November For further information on MSCI indices or MSCI data, please visit our web site at http://www.msci.com. NOTICE AND DISCLAIMER This information is the property of Morgan Stanley Capital International Morgan Stanley Capital International (MSCI) This firm publishes a number of well known benchmarks, such as the MSCI World Index. Inc. (MSCI). The information may not be used to verify or correct data, or any compilation of data or index or in the creation of any indices. Nor may it be used in the creating, offering, trading or promotion of any financial instruments or products. This information is provided on an "as is" basis, and the user of this information assumes the entire risk of any use made of this information. It is not a recommendation to participate in any particular trading strategy In finance, a trading strategy (see also trading system) is a predefined set of rules to apply. Usually, this refers to a means used to replicate an option in order to give it an arbitrage free value in the sense that the cost of buying some financial assets to give the same . Neither MSCI, its affiliates nor any other party involved in the making or compiling of the information (the "MSCI Parties") guarantees the accuracy and/or the completeness of any of this information. None of the MSCI Parties makes any express or implied representations or warranties, and each MSCI Party hereby expressly disclaims all warranties of merchantability mer·chant·a·ble adj. Suitable for buying and selling; marketable. mer  chant·a·bil or fitness for a particular
purpose with respect to any of this information. Without limiting any of
the foregoing, in no event shall any MSCI Party have any liability for
any damages of any kind even if notified of the possibility of such
damages.Morgan Stanley Capital International, MSCI and all other service marks referred to herein are the exclusive property of MSCI and its affiliates. All MSCI indices are the exclusive property of MSCI and may not be used in any way without the express written permission of MSCI. Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Dean Witter Dean Witter may refer to:
Please [ improve this article] or discuss the issue on the talk page. firm is the majority shareholder of MSCI, and The Capital Group Companies, Inc., a global investment management group, is the minority shareholder. |
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