NEW YORK–(COMMERCIAL THREAD) – MSCI Inc. (NYSE: MSCI), a leading provider of decision support tools and services to the global investment community, today announced that it will reclassify the MSCI Pakistan Indices from emerging markets to frontier markets.
This conclusion follows comments received from market participants during its recent consultation on a market reclassification proposal for the MSCI Pakistan Index. MSCI will reclassify MSCI Pakistan Indices from Emerging Markets to Frontier Markets in a single step, coinciding with the Semi-Annual Index Review (SAIR) of November 2021. Based on a simulation using pro forma data as of August 31, 2021, this would lead to the inclusion of four stocks in the MSCI Frontier Markets index with an estimated index weight of 1.90%.
Although the Pakistani equity market meets market accessibility requirements under the Emerging Markets Classification Framework, it no longer meets size and liquidity standards. More specifically, the index continuity rules, as described in section 2.4 of the MSCI Global Investable Market index methodology, have been applied since the half-yearly index review of November 2018 to maintain the three components required in the index. MSCI Pakistan Index. As of the November 2019 SAIR, no security in the MSCI Pakistan equity universe meets the size and emerging market liquidity criteria of the MSCI Market Classification Framework.
Starting from the SAIR in November 2021, the MSCI Pakistan Indices will be rebalanced based on the size and liquidity requirements for smaller mid-level liquidity frontier markets, as described in Section 5.2 of the MSCI Global Investable Market Indices Methodology.
MSCI is a leading provider of decision support tools and services to the global investment community. With over 50 years of research, data and technology expertise, we make better investment decisions by empowering clients to understand and analyze key risk and reward drivers and create with confidence more efficient portfolios. We create cutting-edge, research-powered solutions that clients use to better understand and improve transparency throughout the investment process. For more information, please visit www.msci.com.
This document and all information it contains, including, without limitation, all text, data, graphics, tables (collectively, “Information”) are the property of MSCI Inc. or its subsidiaries (collectively, “MSCI ”), Or from MSCI’s licensors, direct or indirect suppliers or any third party involved in the creation or compilation of any Information (collectively, together with MSCI, the“ Information Providers ”) and is provided for informational purposes only. The Information may not be modified, reverse engineered, reproduced or redistributed in whole or in part without the prior written permission of MSCI. All rights to the information are reserved by MSCI and / or its information providers.
The Information cannot be used to create derivative works or to verify or correct other data or information. For example (but without limitation), the Information cannot be used to create indices, databases, risk models, analyzes, software, or in connection with the issue, offer, sponsorship , the management or marketing of any security, portfolio, financial product or other investment vehicles using or based on, linked to, tracked or otherwise derived from Information or any other data, information, product or service of MSCI.
The user of the Information assumes full responsibility for any use he may make or allow the Information to be made. NONE OF THE INFORMATION PROVIDERS MAKES ANY EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS REGARDING THE INFORMATION (OR THE RESULTS TO BE OBTAINED FROM THE USE OF IT), AND TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH INFORMATION PROVIDER EXPRESSLY DISCLAIMS ALL IMPLIED DATA, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF ORIGINALITY, ACCURACY, TIMELINESS, NO INFRINGEMENT, COMPLETENESS, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE) WHAT CONCERNS ANY INFORMATION.
Without limiting all of the foregoing and to the maximum extent permitted by applicable law, under no circumstances will an information provider be liable for any of the information for any direct, indirect, special, punitive, consequential (including including loss of profits) or any other damage even if they are informed of the possibility of such damage. The foregoing does not exclude or limit any liability which cannot be excluded or limited by applicable law, including, without limitation (if any), any liability for death or personal injury to the extent that such injuries result from negligence or willful misconduct on his part. , its employees, agents or subcontractors.
Information containing historical information, data or analysis should not be taken as an indication or guarantee of future performance, analyzes, forecasts or predictions. Past performance is no guarantee of future results.
The information should not be relied on and does not replace the skills, judgment and experience of the user, its management, employees, advisers and / or clients when making business decisions. investment and other business decisions. All information is impersonal and is not tailored to the needs of any person, entity or group of people.
None of the Information constitutes an offer to sell (or the solicitation of an offer to buy), any security, financial product or other investment vehicle or any trading strategy.
It is not possible to invest directly in an index. Exposure to an asset class or trading strategy or other category represented by an index is only available through third party investment instruments (if any) based on that index. MSCI does not issue, sponsor, endorse, market, offer, review or express any opinion regarding any fund, ETF, derivative or other security, investment, financial product or trading strategy. which is based on, linked to or seeks to provide an investment return linked to the performance of any MSCI index (collectively, “Index Linked Investments”). MSCI does not guarantee that investments linked to an index will accurately track the performance of the index or provide positive investment returns. MSCI Inc. is not an investment adviser or trustee and MSCI makes no representation regarding the advisability of investing in index investments.
Index returns do not represent actual trading results of investable assets / securities. MSCI maintains and calculates the indices, but does not manage the actual assets. Index returns do not reflect the payment of sales charges or fees an investor may pay to purchase the underlying securities of the index or investments linked to the index. The imposition of such fees and charges would result in a difference between the performance of an indexed investment and the performance of the MSCI index.
The Information may contain back-tested data. Back-tested performance is not actual performance, but is hypothetical. There are frequently significant differences between the performance results tested a posteriori and the actual results obtained subsequently by any investment strategy.
The components of the MSCI equity indices are listed companies, which are included or excluded from the indices according to the application of the relevant index methodologies. Therefore, the constituents of MSCI Stock Indices may include MSCI Inc., clients of MSCI or suppliers of MSCI. Inclusion of a security in an MSCI index is not a recommendation by MSCI to buy, sell or hold such a security, nor is it considered investment advice.
Data and information produced by various subsidiaries of MSCI Inc., including MSCI ESG Research LLC and Barra LLC, may be used in the calculation of certain MSCI indices. Further information is available in the relevant indexing methodologies at www.msci.com.
MSCI receives compensation for licensing its indices to third parties. MSCI Inc.’s income includes the asset-based fees of index investments. Information is available in the documents filed by MSCI Inc. in the Investor Relations section of www.msci.com.
MSCI ESG Research LLC is a registered investment adviser under the Investment Advisers Act of 1940 and a subsidiary of MSCI Inc. Except with respect to applicable products or services of MSCI ESG Research, neither MSCI nor any of its products or services do not recommend, endorse, approve or express any opinion regarding any issuer, securities, financial products or instruments or trading strategies and MSCI’s products or services are not intended to constitute investment advice or a recommendation to take (or refrain from taking) any type of investment decision and cannot be invoked as such. Issuers mentioned or included in MSCI ESG Research materials may include MSCI Inc., customers of MSCI or suppliers of MSCI, and may also purchase research or other products or services from MSCI ESG Research. MSCI ESG research papers, including materials used in MSCI ESG indices or other products, have not been submitted to, nor received the approval of, the United States Securities and Exchange Commission or any other regulatory body.
Any use of or access to MSCI products, services or information requires a license from MSCI. MSCI, Barra, RiskMetrics, IPD, and other MSCI brand and product names are trademarks, service marks, or registered trademarks of MSCI or its subsidiaries in the United States and in other jurisdictions. The Global Industry Classification Standard (GICS) 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.
MIFID2 / MIFIR Notice: MSCI ESG Research LLC does not distribute or act as an intermediary of financial instruments or structured deposits, does not deal on its own behalf, does not provide execution services for third parties or does not does not manage customer accounts. No MSCI ESG Research product or service supports, promotes, or is intended to support or promote such activity. MSCI ESG Research is an independent provider of ESG data, reports and ratings based on published methodologies and available to subscription clients. We do not provide personalized or ad hoc ratings or recommendations of securities or other financial instruments upon request.
For more information on how MSCI collects and uses personal data, please refer to our Privacy Notice at https://www.msci.com/privacy-pledge.