MSCI Barra announced changes to its emerging markets indexes, including a new small-cap index and enhancements to the methodology of its standard index.
The enhanced emerging markets small-cap indexes will include all companies within the top 99% of the equity universe in each market in both developed and emerging markets, subject to a global minimum size requirement.
The new standard global indexes will cover the large-cap and midcap segments of the equity universe by targeting about 85% coverage of the free float-adjusted market capitalization in each market.
“Two years ago, we started discussing with our clients how their index needs were changing,” Khalid Ghayur, global head of research at MSCI Barra, said in an interview. “Investors want … broader coverage of international markets. They want these markets segmented in terms of large, medium and small-cap stocks in a seamless way so they can structure their portfolio the way they want.”
Also, the list of companies in the MSCI Global Investable Market indexes will be available on May 3, and the two-phase transition will be implemented at of the close of Nov. 30, 2007 and May 30, 2008.
