Announcement for August 31, 2021 at 08:15 PM GMT

THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES

CONCLUSIONS FROM THE CONSULTATION ON POTENTIAL ADJUSTMENTS TO THE MSCI DIVERSIFIED MULTIPLE-FACTOR ("DMF") INDEX METHODOLOGY

MSCI announced today the conclusions from its recent consultation on a proposal to apply a set of methodology enhancements to the MSCI Diversified Multiple-Factor ("DMF") Index Methodology and other applicable indexes methodology*.

Following the feedback during the consultation, MSCI will implement the following enhancements to the MSCI Diversified Multiple-Factor ("DMF") Index methodology and other applicable indexes methodologies* starting from the November 2021 Semi-Annual Index Review:

1. The index rebalancing will use the risk model data available a day prior (most recent) to the rebalance day.
2. Size and Momentum factor exposures used in the calculation of the alpha term will be normalized relative to the underlying Parent Index.
3. Active exposures to target and non-target factors will have constraints in the optimization process.
a. Active exposure to the target factors will be restricted to lie within a minimum and a maximum value. Minimum Value will be set to 0.1 in magnitude. To determine the maximum value, MSCI intends to launch a follow up brief survey to seek client feedback on potential values. The outcome of this survey will also be reflected starting from the November 2021 Semi-Annual Index Review. Further details on this survey will be communicated in due course.
b. Active exposure to non-target factors will be restricted to +/- 0.1.
4. Rebalancing frequency will be changed to quarterly from semi-annual. The one-way turnover will be constrained to a maximum of 10% at each rebalance.
5. For the index constituents in Mid-cap and Small-cap segments, maximum weight of an index constituent will be restricted to the lower of (the weight of the security in the Parent Index + 1%) and 5 times the weight of the security in the Parent Index. The minimum weight of an index constituent will be restricted to the higher of the (weight of the security in the Parent Index - 1%) and 0.

MSCI may selectively apply these enhancements for custom indexes based on client requests.

This announcement aims to provide transparency and offer sufficient lead time prior to implementation of the changes, in line with market participants' feedback. MSCI will make available the updated MSCI Diversified Multiple-Factor Index methodology book and other applicable indexes methodology* books prior to the implementation of aforementioned enhancements.

* Other applicable indexes methodology are:
- MSCI Diversified Multiple 3-Factor Indexes
- MSCI Diversified Multiple 5-Factor Indexes
- MSCI Diversified Multiple-Factor Low Volatility Indexes
- MSCI Diversified Multiple-Factor R-Series Indexes
- MSCI Factor ESG Target Series Indexes

THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES

                                     End of announcement.
                                     Further announcements may occur as needed.