Announcement for January 31, 2020 at 03:42 PM GMT
THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES
DETAILS ON THE IMPLEMENTATION OF THE RECLASSIFICATION OF THE MSCI KUWAIT INDEXES
TO EMERGING MARKETS AND LAUNCH OF THE MSCI PROVISIONAL KUWAIT INDEXES
MSCI announced on December 19, 2019 that the MSCI Kuwait Indexes will be
reclassified to Emerging Markets from Frontier Markets in one step coinciding
with the May 2020 Semi-Annual Index Review (SAIR). As part of the May 2020 SAIR,
the MSCI Kuwait Indexes will converge with the MSCI Provisional Kuwait Indexes,
which will be rebalanced using Emerging Markets size and liquidity requirements.
LAUNCH OF THE MSCI PROVISIONAL KUWAIT INDEXES
MSCI also announces the launch of 12 new Provisional Indexes which aim to assist
investors in managing the implementation of Kuwait~s reclassification to
Emerging Markets. The MSCI Provisional Kuwait Indexes were constructed by
applying Emerging Markets index maintenance rules on the MSCI Kuwait Indexes.
The list of new provisional indexes includes:
- MSCI Provisional Kuwait Index
- MSCI Provisional Kuwait IMI
- MSCI Provisional ACWI with Kuwait Index
- MSCI Provisional ACWI IMI with Kuwait
- MSCI Provisional EM with Kuwait Index
- MSCI Provisional EM Small Cap with Kuwait Index
- MSCI Provisional EM IMI with Kuwait
- MSCI Provisional EM EMEA with Kuwait Index
- MSCI Provisional EM EMEA IMI with Kuwait
- MSCI Provisional FM (Frontier Markets) ex Kuwait Index
- MSCI Provisional FM (Frontier Markets) IMI ex Kuwait
- MSCI Provisional EM Islamic M Series with Kuwait Index
Access to index level and constituent data for these indexes will be delivered
through Integrated Client Files (ICF) upon request.
To provide more transparency on the construction and maintenance of the MSCI
Provisional Kuwait Indexes, MSCI has also made available a list of securities
that are part of the Investable Equity Universe of the MSCI Kuwait Indexes on
https://www.msci.com/market-classification.
SPECIAL TREATMENT FOR THE MSCI KUWAIT INDEXES IN THE CONTEXT OF THE
RECLASSIFICATION TO EMERGING MARKETS
As part of the February 2020 Quarterly Index Review, newly eligible securities
will not be added to the MSCI Kuwait IMI to prevent potential reverse turnover
once the index has started to use Emerging Markets size and liquidity
requirements. Such treatment will be applicable until the effective
implementation date of the May 2020 SAIR.
In line with this, IPOs and early inclusions will also not be added to the MSCI
Kuwait IMI as part of ongoing daily maintenance from March 2, 2020 until May 29,
2020. However, addition of securities due to spin-offs and mergers/ acquisitions
will be treated as normally and may continue to be added during this period.
Note that the special treatment is only applied to the MSCI Kuwait Indexes. All
IPOs or newly eligible securities that meet the necessary inclusion requirements
based on Emerging Markets rules may be added to the MSCI Provisional Kuwait
Indexes.
MSCI has made available a Q&A document providing details regarding the
reclassification which is available on:
https://www.msci.com/market-classification.
The updated MSCI Global Investable Market Indexes Methodology with details on
the implementation of the above changes has been posted on
https://www.msci.com/index-methodology.
For further information on MSCI indexes or MSCI data, please visit our web site
at www.msci.com, or contact:
MSCI Global Client Service:
Americas Client Service: 1.888.588.4567 (toll free)/+ 1.212.804.3901
EMEA Client Service: + 44.20.7618.2222
Asia Pacific Client Service: + 852.2844.9333
THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDEXES
End of announcement.
Further announcements may occur as needed.
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