MSCI Launches MSCI EM Beyond BRIC Index
LONDON -- September 12, 2013
MSCI Inc. (NYSE:MSCI), a leading provider of investment decision support tools
worldwide, has launched a new Emerging Markets index – the MSCI EM Beyond BRIC
Index. The index, a subset of the well known and widely used MSCI Emerging
Markets Index, is comprised of 17 countries and excludes the BRIC countries –
Brazil, Russia, India and China – which currently represent over 40% of the
MSCI Emerging Markets Index.
“The BRIC countries have been recognized over the past few years as key
drivers of economic growth within the Emerging Markets and many institutional
investors already have exposure to those countries within their portfolios,”
said Deborah Yang, Managing Director and Head of the MSCI Index Business in
Europe, the Middle East, Africa and India. “We have launched the MSCI EM
Beyond BRIC Index in response to client demand and believe it offers a new way
to track and evaluate the Emerging Markets opportunity set for those wishing
to invest in countries outside the BRIC region.”
To help diversify the representation across the 17 countries in the index, the
weights of larger Emerging Market countries such as Taiwan and Korea are
capped on a quarterly basis at 15%, giving greater prominence to smaller
Emerging Market countries including Thailand, Malaysia and Indonesia.
Country Index Country Index Country Index
Weight Weight Weight
Chile 3.90% Korea 15.03% Poland 3.72%
Colombia 2.76% Malaysia 8.92% South 15.78%
Czech 0.54% Mexico 12.45% Taiwan 15.33%
Egypt 0.58% Morocco 0.18% Thailand 6.11%
Hungary 0.50% Peru 0.98% Turkey 4.22%
Indonesia 6.59% Philippines 2.42%
As of July 31, 2012
The MSCI EM Beyond BRIC Index has outperformed the MSCI Emerging Markets Index
since 1999 (12.0% gross annualized return in USD vs 11.1%). Between 1999 and
2007, the MSCI Emerging Markets Index outperformed the MSCI EM Beyond BRIC
Index by 2.1 percentage points (20.1% vs 18%). Since 2007, the MSCI EM Beyond
BRIC Index has had a positive annualized performance of 2.83% while the MSCI
Emerging Markets Index had a negative performance of 2.1%.
The index may be licensed for benchmarking or as the basis for financial
products such as ETFs and structured products. For more information: MSCI EM
Beyond BRIC Index
MSCI Inc. is a leading provider of investment decision support tools to
investors globally, including asset managers, banks, hedge funds and pension
funds. MSCI products and services include indices, portfolio risk and
performance analytics, and governance tools.
The company’s flagship product offerings are: the MSCI indices with close to
USD 7 trillion estimated to be benchmarked to them on a worldwide basis^1;
Barra multi-asset class factor models, portfolio risk and performance
analytics; RiskMetrics multi-asset class market and credit risk analytics; IPD
real estate information, indices and analytics; MSCI ESG (environmental,
social and governance) Research screening, analysis and ratings; ISS
governance research and outsourced proxy voting and reporting services; and
FEA valuation models and risk management software for the energy and
commodities markets. MSCI is headquartered in New York, with research and
commercial offices around the world.
^1As of September 30, 2012, as published by eVestment, Lipper and Bloomberg on
January 31, 2013
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