MSCI Small Cap Index Series May 2005 Semi-Annual Index Review.GENEVA -- MSCI, a leading provider of international equity, US equity, fixed income and hedge fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" indices, announced today changes to the MSCI Small Cap Index Series that will be effective as of the close of May 31, 2005. These changes result from the May 2005 Semi-Annual Index Review, including a full review of the free float Free float An exchange rate system characterized by the absence of government intervention. Also known as clean float. of all constituents. The list of changes in constituents for the MSCI Small Cap Index Series as well as an updated methodology book have been posted on MSCI's web site at www.msci.com/smallcap. Effective as of the close of May 31, 2005, 279 securities will be added to the MSCI Small Cap Index Series and 90 securities will be deleted Deleted A security that is no longer included on a specified market. Sometimes referred to as "delisted". Notes: Reasons for delisting include violating regulations, failing to meet financial specifications set out by the stock exchange and going bankrupt. . In addition, MSCI reviewed the free float of all constituents of the MSCI Small Cap Index Series, leading to changes in Foreign Inclusion Factors (FIFs) for 455 securities. FIFs adjust the market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. of securities for free float available to foreign investors. The MSCI Small Cap Index Series attempts to represent the business activities of small capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. companies across developed markets. Companies with a full market capitalization between USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 200 and 1,500 million are eligible for inclusion. MSCI then selects the most liquid securities relative to their market capitalization, and targets for index inclusion 40% of the full universe within each industry group, within each country. Finally, the market capitalization of index constituents is free float-adjusted. Below is a brief pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma analysis of the changes that will occur in the MSCI Small Cap Index Series for some of the more frequently used global and regional composite indices, using data as of April 20, 2005. World Index - The MSCI World The MSCI World is a stock market index of 'world' stocks. It is maintained by Morgan Stanley Capital International. The index includes a selection of stocks of all the developed markets in the world, as defined by MSCI. Small Cap Index represents the small cap segment in 23 of the world's developed equity markets. On a pro forma basis, the market capitalization of the index will be USD 1,168 billion, and the index will include 1,920 securities. EAFE EAFE Europe, Australia, and the Far East (markets) EAFE European Association of Fisheries Economists EAFE European Association of Forensic Entomologists EAFE Edge-Average Finite Element EAFE Extended Arm Fume Extractor (Europe, Australasia, Far East) Index - The 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. Small Cap Index represents the small cap segment in 21 developed equity markets outside of North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . On a pro forma basis, the market capitalization of the index will be USD 609 billion, and the index will include 1,088 securities. Europe Index - The MSCI Europe Small Cap Index represents the small cap segment in 16 developed equity markets in Europe. On a pro forma basis, the market capitalization of the index will be USD 323 billion, and the index will include 502 securities. The results of the May 2005 Annual Index Review for the MSCI Standard Index Series, the MSCI Pan-Euro and Euro Indices and the MSCI China A Index, as well as the May 2005 Semi-Annual Index Review for the MSCI Global Value and Growth Index Series, the MSCI US Equity Indices and the Morgan Stanley REIT Index Morgan Stanley REIT Index A capitalization-weighted benchmark index of the most actively traded real estate investment trusts (REITs), designed to measure real estate equity performance. have also been posted on MSCI's web site at www.msci.com.
MSCI SMALL CAP INDEX SERIES
PRO FORMA DATA FOR MAIN REGIONAL INDICES
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MSCI WORLD SMALL CAP INDEX
Top 10 Weight Top 10 Industry Group Weights Weight
Country
Weights
USA 43.07% Capital Goods 11.38%
Japan 16.63% Materials 7.53%
United Kingdom 8.81% Real Estate 6.97%
Canada 4.82% Software & Services 5.75%
Australia 4.35% Technology Hardware & Equipment 5.42%
France 2.46% Retailing 5.23%
Sweden 2.26% Health Care Equipment & Services 5.12%
Germany 2.17% Banks 4.81%
Switzerland 1.96% Consumer Durables & Apparel 4.74%
Netherlands 1.57% Energy 4.58%
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MSCI EAFE SMALL CAP INDEX
Top 10 Weight Top 10 Industry Group Weights Weight
Country
Weights
Japan 31.92% Capital Goods 14.80%
United Kingdom 16.90% Materials 8.40%
Australia 8.35% Real Estate 7.59%
France 4.71% Transportation 5.34%
Sweden 4.33% Consumer Durables & Apparel 5.33%
Germany 4.17% Retailing 5.15%
Switzerland 3.76% Diversified Financials 5.00%
Netherlands 3.01% Technology Hardware & Equipment 4.97%
Italy 2.87% Food, Beverage & Tobacco 4.72%
Finland 2.81% Commercial Services & Supplies 4.35%
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MSCI EUROPE SMALL CAP INDEX
Top 10 Weight Top 10 Industry Group Weights Weight
Country
Weights
United Kingdom 31.89% Capital Goods 14.96%
France 8.89% Real Estate 8.03%
Sweden 8.17% Materials 6.50%
Germany 7.86% Transportation 5.38%
Switzerland 7.09% Commercial Services & Supplies 5.33%
Netherlands 5.67% Energy 5.31%
Italy 5.42% Diversified Financials 5.19%
Finland 5.30% Consumer Durables & Apparel 4.71%
Norway 4.08% Retailing 4.32%
Belgium 3.67% Consumer Services 4.32%
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Note: All pro forma information uses data as of April 20, 2005.
ABOUT MSCI MSCI (www.msci.com) is a leading provider of equity, fixed income and hedge fund indices, and related products and services. MSCI estimates that over USD 3 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. is benchmarked to its indices on a worldwide basis. MSCI is headquartered in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , with research and commercial offices around the world. In 2004, MSCI acquired Barra, Inc. (www.barra.com), a global leader in delivering risk analytics, performance measurement and attribution at·tri·bu·tion n. 1. The act of attributing, especially the act of establishing a particular person as the creator of a work of art. 2. systems and services to managers of portfolio and firm-wide investment risk. Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. , a global
financial services The examples and perspective in this article or section may not represent a worldwide view of the subject.Please [ improve this article] or discuss the issue on the talk page. firm and a market leader in securities, asset management, and credit services, is the majority shareholder of MSCI, and Capital International Inc., part of the global investment management group of The Capital Group Companies, Inc., is the minority shareholder. 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, a global financial services firm and a market leader in securities, asset management, and credit services, 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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