Announcement for November 28, 2024 at 09:05 PM GMT

THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES

CONCLUSIONS OF THE FOLLOW-UP CONSULTATION ON CAPPING AND METHODOLOGY CHANGE IMPLEMENTATION SCHEDULE FOR THE MSCI ISLAMIC INDEX SERIES AND THE MSCI ISLAMIC INDEX M-SERIES

MSCI announced today the conclusions of its recent follow-up consultation on Constituent Weighting and Capping Methodology for the MSCI Islamic Index Series.

Following feedback from the investment community, MSCI will apply a 15% issuer level capping on the MSCI Islamic Index Series. This capping will be applied to each MSCI Islamic Series Index at the quarterly index reviews, and intra-quarter weights will fluctuate according to market movements. Note that the capping level of 15% will not change according to the weight of the largest issuer in the non-Islamic versions of these indexes, as was initially proposed during the consultation.

There will be no change to the constituent weighting and capping methodology for the MSCI Islamic Index M-Series.

Additionally, as a reminder, MSCI previously announced that it will apply the following enhancements to the Financial Screening for the MSCI Islamic Index Series:

* Enhancement 1: To introduce an "Exit Buffer" for financial ratios based on 'total debt' and 'sum of a company's cash and interest-bearing securities' for existing constituents:

- A security that would otherwise be deleted due to not meeting the financial ratio threshold(s) of 33.33% would be retained in the index as long as the following conditions are met: 1) it remains within the Exit Buffer of 35% and 2) its 4-quarter rolling average (including current index review) remains equal to or below the Financial Ratio Threshold of 33.33%.

- The security would be deleted from the index if its financial ratio breaches the Financial Ratio Threshold of 33.33% for 3 consecutive index reviews even if it continues to meet the above conditions.

* Enhancement 2: To extend the Entry Buffer and the Financial Ratio Threshold of the financial ratio based on 'sum of a company's accounts receivables and cash':

- The Entry Buffer will increase from 30% to 46%.

- The Financial Ratio Threshold will increase from 33.33% to 70%.

There will be no change to the existing Financial Screening methodology of the MSCI Islamic Index M-Series.

Finally, MSCI will remove the review for non-compliance of an Islamic index constituent resulting from regular monthly and annual GICS changes for both the MSCI Islamic Index Series and the MSCI Islamic Index M-Series, as MSCI performs the revenue-based Business Activity Screening to assess the Islamic compliance of a security on a quarterly basis.

All of the above enhancements, as well as the changes to the constituent weighting and capping methodology, will be implemented as part of May 2025 Index Review.

At the time of the February 2025 Index Review, MSCI will monitor new additions and reserve the right not to add securities that could later be subject to issuer capping at the May 2025 Index Review. This measure is intended to prevent potential reverse index turnover at the time of the implementation of the abovementioned changes.

MSCI will update the MSCI Islamic Index Series Methodology to reflect these enhancements in due course. Details of the current methodology is available on: https://www.msci.com/index-methodology.

THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES

                                     End of announcement.
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