MSCI Small Cap Index Series May 2006 Semi-Annual Index Review.GENEVA -- MSCI Barra MSCI Barra is a leading provider of equity, fixed income, and hedge fund indices. In 2004 Morgan Stanley Capital International acquired Barra, Inc., to form MSCI Barra. The company is headquartered in New York City, with operations in Geneva, London, Mumbai, Hong Kong, Paris, , a leading provider of benchmark indices and risk management analytics products, announced today changes to the MSCI Small Cap Index Series that will be effective as of the close of May 31, 2006. These changes result from the May 2006 Semi-Annual Index Review. 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, 2006, 411 securities will be added to the MSCI Small Cap Index Series and 113 securities will be deleted. In addition, MSCI reviewed the free float Free float An exchange rate system characterized by the absence of government intervention. Also known as clean float. of all constituents of the MSCI Small Cap Index Series, leading to changes in Foreign Inclusion Factors (FIFs) for 482 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 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, 2006. 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 1,395 billion, and the index will include 2,177 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 717 billion, and the index will include 1,269 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 363 billion, and the index will include 577 securities. The results of the May 2006 Annual Index Review for the MSCI Standard Index Series, the MSCI Pan-Euro and Euro Indices, the MSCI China A Index as well as the May 2006 Semi-Annual Index Review for the MSCI Global Value and Growth Index Series, the MSCI US Equity Indices, the MSCI US REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). Index, the MSCI Kokunai Japan Equity Indices 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 Country Weights Weight Top 10 Industry Group Weights Weight
USA 42.87% Capital Goods 13.00%
Japan 18.71% Materials 7.99%
United Kingdom 8.53% Real Estate 6.76%
Canada 5.76% Energy 6.31%
Australia 3.56% Technology Hardware & 5.85%
Equipment
France 2.28% Software & Services 5.73%
Germany 2.13% Banks 5.42%
Switzerland 1.96% Retailing 5.40%
Sweden 1.91% Consumer Durables & Apparel 4.60%
Norway 1.70% Health Care Equipment & 4.35%
Services
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MSCI EAFE SMALL CAP INDEX
Top 10 Country Weights Weight Top 10 Industry Group Weights Weight
Japan 36.43% Capital Goods 17.01%
United Kingdom 16.60% Real Estate 7.94%
Australia 6.93% Materials 7.80%
France 4.44% Retailing 5.95%
Germany 4.15% Consumer Durables & Apparel 5.85%
Switzerland 3.82% Technology Hardware & 5.43%
Equipment
Sweden 3.71% Diversified Financials 5.41%
Norway 3.32% Software & Services 4.67%
Hong Kong 2.70% Commercial Services & 4.49%
Supplies
Italy 2.54% Energy 3.96%
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MSCI EUROPE SMALL CAP INDEX
Top 10 Country Weights Weight Top 10 Industry Group Weights Weight
United Kingdom 32.73% Capital Goods 17.22%
France 8.75% Real Estate 8.28%
Germany 8.17% Diversified Financials 6.77%
Switzerland 7.54% Energy 5.96%
Sweden 7.32% Technology Hardware & 5.53%
Equipment
Norway 6.54% Consumer Durables & Apparel 5.48%
Italy 5.02% Commercial Services & 5.29%
Supplies
Netherlands 4.97% Software & Services 5.06%
Belgium 3.59% Retailing 5.04%
Denmark 3.53% Materials 4.71%
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Note: all pro forma data uses data as of April 20, 2006.
About MSCI Barra MSCI (www.msci.com) develops and maintains equity, fixed income, multi-asset class, REIT 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 that serve as benchmarks for an estimated USD 3 trillion on a worldwide basis and owns Barra, Inc. ("Barra"). Barra (www.barra.com) analytics help the world's largest investors analyze, measure and manage portfolio and firm-wide investment risk. MSCI Barra 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. 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 Group International, Inc. is the minority shareholder. MSCI Barra is a service mark 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" or "MSCI Barra"). For further information on MSCI indices or MSCI data, please visit our web site at www.msci.com or for Barra products, please visit our web site at www.barra.com The information contained in this document, including all text, data, graphs, charts and all other information (collectively, the "Information") is the property of Morgan Stanley Capital International Inc. (MSCI) and is provided for informational purposes only. Any use of MSCI indices, data or other information requires a license from MSCI. The Information may not be used to verify or correct other data, to create indices, or in connection with offering, sponsoring, managing or marketing any securities, portfolios, financial instruments or products. None of the Information constitutes an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or 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 , and MSCI does not endorse, approve or otherwise express any opinion regarding any issuer, securities, financial instruments or products or trading strategies that may be described or mentioned herein. Further, none of the Information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. The user of the Information assumes the entire risk of any use it may make or permit to be made of it. NEITHER MSCI, ANY OF ITS AFFILIATES OR ANY OTHER THIRD PARTY INVOLVED IN MAKING OR COMPILING ANY OF THE INFORMATION MAKES ANY EXPRESS OR IMPLIED WARRANTIES A promise, arising by operation of law, that something that is sold will be merchantable and fit for the purpose for which it is sold. Every time goods are bought and sold, a sales contract is created: the buyer agrees to pay, and the seller agrees to accept, a certain price OR REPRESENTATIONS WITH RESPECT TO THE INFORMATION (OR THE RESULTS TO BE OBTAINED BY THE USE THEREOF), AND MSCI, ITS AFFILIATES AND EACH SUCH OTHER THIRD PARTY HEREBY EXPRESSLY DISCLAIM dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. ALL IMPLIED WARRANTIES (INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF ORIGINALITY o·rig·i·nal·i·ty n. pl. o·rig·i·nal·i·ties 1. The quality of being original. 2. The capacity to act or think independently. 3. Something original. Noun 1. , ACCURACY, TIMELINESS, NON-INFRINGEMENT, COMPLETENESS, MERCHANTABILITY mer·chant·a·ble adj. Suitable for buying and selling; marketable. mer  chant·a·bil AND FITNESS FOR A PARTICULAR PURPOSE) WITH RESPECT TO ANY OF THE
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consequential con·se·quen·tial adj. 1. Following as an effect, result, or conclusion; consequent. 2. Having important consequences; significant: or any other damages (including lost profits) even if notified of the possibility of such damages. Morgan Stanley Capital International, MSCI(R), ACWI ACWI Advisory Committee on Water Information ACWI All Country World Index , EAFE(R), Barra(R), MSCI Barra and all other service marks referred to herein are the exclusive property of MSCI or its affiliates, except as provided below. All MSCI indices are the exclusive property of MSCI and may not be used in any way without the express written permission of MSCI. The Global Industry Classification Standard (GICS GICS Government Information and Communication Service (UK) GICS German Internet Chess Server GICS Global Industry Classification Standards GICS Grant Information and Control System ) was developed by and is the exclusive property of MSCI and Standard & Poor's. "Global Industry Classification Standard (GICS)" is a service mark of MSCI and Standard & Poor's. |
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