MSCI Standard Index Series May 2005 Annual Full Country 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 Standard Index Series that will be effective as of the close of May 31, 2005. These changes result from the May 2005 Annual Full Country 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. As a reminder, the objective of the Annual Full Country Index Review is a systematic re-assessment of the various dimensions of the equity universe, whereby securities may be added to or deleted from the MSCI Standard Index Series in order for each country index to be as close as possible to the 85% free float-adjusted 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. representation target at the industry group level. The list of changes in constituents for the MSCI Standard Index Series as well as an updated methodology book have been posted on MSCI's web site at http://www.msci.com/stdindex. After conducting a public consultation during March 2005, MSCI decided to modify the current definition of the universe of securities that should be eligible for inclusion in the MSCI Russia Index and in the MSCI China Index. The universe of securities underlying the MSCI Russia index is now composed of securities of companies incorporated in Russia and listed on the Russian Trading System Russian Trading System (RTS) An electronic system in Russia, like the Nasdaq system on which the majority of Russian equities trading is conducted. (RTS (Request To Send) An RS-232 signal sent from the transmitting station to the receiving station requesting permission to transmit. Contrast with CTS. 1. (operating system) RTS - run-time system. 2. ) or the Moscow Interbank Currency Exchange Moscow Interbank Currency Exchange (MICEX) Established in 1992, the most liquid and best organized financial exchange in Russia. (MICEX See Moscow Interbank Currency Exchange. ), as well as depository receipts listed in markets outside Russia, such as London or 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 . The MSCI China universe now also includes China Private Enterprises (P-Chips) listed on the Hong Kong Stock Exchange The Hong Kong Stock Exchange (Traditional Chinese: 香港交易所, also 港交所; abbreviated as HKEX; HKSE: 0388 ) is the stock exchange of Hong Kong. . Effective as of the close of May 31, 2005, 278 securities will be added to the MSCI Standard Index Series. These additions bring the representation of their respective industry groups in their respective countries closer to MSCI's target of 85% of free float-adjusted market capitalization. The largest additions in the MSCI World Index See Morgan Stanley Capital International World Index. are Sprint Corporation (USA), Capital One Financial (USA), KDDI (Japan) and Research In Motion (Canada). Mobile TeleSystems Mobile TeleSystems or MTS (RTS:B>MTSS MICEX:B>MTSI) is the largest mobile operator in Russia and CIS with over 74.67 million subscribers as of June 30, 2007.[1] The MTS wireless network operates using the GSM standard. ADR ADR - Astra Digital Radio (Russia) and VimpelCom ADR (Russia) are the largest inclusions in the MSCI Emerging Markets (EM) Index. The Annual Full Country Index Review will also lead to the deletion of 30 securities. As previously announced, MSCI will increase the Limited Investability Factor (LIF 1. (hardware) LIF - Low Insertion Force. 2. (file format) LIF - Logical Interchange Format. ) currently applied to the MSCI Taiwan Index from 0.75 to 1 as of the close of May 31, 2005. MSCI's annual review of the free float for all constituents of the 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 MSCI ACWI ACWI Advisory Committee on Water Information ACWI All Country World Index Index will result in changes in Foreign Inclusion Factors (FIFs) for 573 securities in 47 countries. Ninety-four FIF (Fractal Image Format) A graphics file format from content management company Interwoven, Inc. San Jose, CA (www.interwoven.com) that stores fractal images with compression ratios as high as 2,500:1. FIF was originally from MediaBin, Inc. changes result from the second phase of the increase of the LIF for the MSCI Taiwan Index. FIFs adjust the market capitalization of securities for free float available to foreign investors. These changes reflect the evolution of shareholdings, changes in Foreign Ownership Limits (FOLs), changes in Limited Investability Factors (LIFs) or the reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. of certain shareholders. The results of the May 2005 Semi-Annual Index Review for the MSCI Small Cap Index Series, the MSCI Global Value and Growth Index Series, the MSCI US Equity Indices, 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. , as well as the Annual Index Review for the MSCI Pan-Euro and Euro Indices and the MSCI China A Index have also been posted on MSCI's web site at www.msci.com. The updated methodology book includes, amongst other things, an updated set of minimum size guidelines used for additions to and deletions from the MSCI Standard Indices, an updated GICS GICS Government Information and Communication Service (UK) GICS German Internet Chess Server GICS Global Industry Classification Standards GICS Grant Information and Control System structure and revised definitions of the Russian and Chinese underlying universes. All changes in this newly released methodology book are effective immediately. Please find below a list of the largest additions to 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. and Emerging Markets (EM) Indices.
Largest additions to the MSCI World Index for selected countries
and regions:
Country Security Name Industry
Group
USA
US Sprint Corp TELECOMMUNICATION SERVICES
US Capital One Financial DIVERSIFIED FINANCIALS
US L-3 Communications Hldgs CAPITAL GOODS
US Autodesk SOFTWARE & SERVICES
US Coventry Health Care HEALTH CARE EQUIPMENT & SERVICES
Canada
CA Research In Motion TECHNOLOGY HARDWARE & EQUIPMENT
CA IPSCO MATERIALS
CA Rona RETAILING
CA Jean Coutu Group A FOOD & STAPLES RETAILING
CA Saputo FOOD, BEVERAGE & TOBACCO
Europe ex
UK
FR PagesJaunes MEDIA
FR Neopost TECHNOLOGY HARDWARE & EQUIPMENT
FR Aut. Paris Rhin Rhone TRANSPORTATION
DE Hochtief CAPITAL GOODS
DE Premiere MEDIA
United Kingdom
GB Gallaher Group FOOD, BEVERAGE & TOBACCO
GB Travis Perkins RETAILING
GB Britannic Group INSURANCE
GB Brixton REAL ESTATE
GB Isoft Group HEALTH CARE EQUIPMENT & SERVICES
Japan
JP KDDI TELECOMMUNICATION SERVICES
JP Nippon Electric Glass Co TECHNOLOGY HARDWARE & EQUIPMENT
JP Toyota Tsusho CAPITAL GOODS
JP Tanabe Seiyaku Co PHARMACEUTICALS & BIOTECHNOLOGY
JP Bank Kyoto BANKS
Pacific ex Japan
AU Multiplex Group REAL ESTATE
AU Alinta UTILITIES
AU Caltex Australia ENERGY
AU Macquarie Communications MEDIA
AU Macquarie Airports TRANSPORTATION
Largest additions to the MSCI Emerging Markets (EM) Index by
region:
Country Security Name Industry Pro Index Weight in
Group forma Market Pro forma
FIF Cap Country
Index
EM Asia
TW Hannstar Display TECH 0.80 1,264 0.62%
TW High Tech Computer Corp TECH 0.60 1,080 0.53%
TW Fuhwa Financial Hldgs DIVE 0.60 865 0.42%
KR Hyundai Mipo Dockyard CAPI 0.65 859 0.41%
CN Global Bio-Chem Tech FOOD 0.55 838 0.90%
EM EMEA
RU Surgutneftegaz Pref(RUB)(a) ENER 0.90 3,911 7.45%
RU Mobile Telesys ADR (USD) TELE 0.25 3,322 6.33%
RU Vimpel Com ADR (USD) TELE 0.45 3,167 6.03%
RU Tatneft Common (RUB)(a) ENER 0.60 2,245 4.27%
RU AFK Sistema GDR (USD) TELE 0.20 1,605 3.06%
EM Latin America
BR CCR Rodovias ON TRAN 0.35 728 0.66%
CL Lan Airlines TRAN 0.30 721 3.00%
BR Lojas Americanas PN RETA 0.95 646 0.58%
MX Urbi Desarrollos Urbanos CONS 0.45 634 0.96%
BR Natura Cosmeticos ON HOUS 0.25 588 0.53%
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Note: All market caps are in USD millions. Data as of April 20, 2005.
(a) For Surgutneftegaz Pref(RUB) and Tatneft Common (RUB), the
addition only reflects a change in price source from the Russian
Trading System (RTS) to the Moscow Interbank Currency Exchange (MICEX)
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 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. 3 trillion is benchmarked to its indices on a worldwide basis. MSCI is headquartered in New York, 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 systems and services to managers of portfolio and firm-wide investment risk. 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 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. 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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