GLOBAL - Global benchmark provider MSCI is rebalancing its small cap country indices.
The MSCI Small Cap Indices aims to represent the business activities of small cap companies across developed markets. MSCI selects the most liquid securities relative to their market cap, and targets for index inclusion of 40% of the full market cap of the eligible small cap universe within each industry group, within each country.
Changes will be based on the MSCI Small Cap Methodology which broadens the companies' full market cap range from US$200–800m to US$200–1,500m and free float adjusts the market cap of each constituent.
In addition, the newly created MSCI Greece Small Cap Index will be added to the MSCI Small Cap Index Series as of September 28, 2001, reflecting Greece’s reclassification as a developed market index.
Changes to some of the some of the more frequently used MSCI Small Cap Indices include:
- MSCI World Small Cap IndexSM, which represents 23 markets: the market cap of the index will be US$720bn, and the index will include 1,722 securities.
- MSCI EAFE Small Cap Index represents 21 markets in Europe, Australasia, Far East. The market cap of the index will be US$ 335bn, and will include 996 securities.
- MSCI Europe Small Cap Index represents 16 European markets. The market cap of the index will be US$185bn and the index will include 494 securities.
The changes will take effect after the close of trading on September 28.
The next small cap rebalancing is planned for the end of May 2002.
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