INDEX METHODOLOGYMSCI INDEXCALCULATIONMETHODOLOGY
Index Calculation Methodology for the MSCI Equity Indexes
Esquivel, Carlos

August 2015

AUGUST 2015

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

CONTENTS

Introduction ....................................................................................... 5
MSCI Equity Indexes........................................................................... 6
1

MSCI Price Index Methodology ................................................... 7
1.1

Price Index Level....................................................................................... 7

1.1.1

Index Market Capitalization ..............................................................................7

1.1.2

Example of calculation ................................................................................... 10

1.2 Price Index Level (Alternative Calculation Formula – Contribution
Method) ............................................................................................................ 11
1.2.1

Security Contribution to the Index ................................................................ 11

1.2.2

Today’s Initial Security Weight ...................................................................... 11

1.2.3

Security Daily Price Return............................................................................. 13

1.2.4

Example of calculation using contribution..................................................... 15

1.3

Next Day Initial Security Weight ............................................................ 16

1.4 Closing Index Market Capitalization Today USD (Unadjusted Market Cap
Today USD) ........................................................................................................ 17

2

1.5

Security Index Of Price In Local .............................................................. 18

1.6

Note on Index Calculation In Local Currency ......................................... 20

1.7

Conversion of Indexes Into Another Currency ....................................... 20

MSCI Daily Total Return (DTR) Index Methodology ................... 22
2.1

Calculation Methodology ....................................................................... 22

2.1.1

Dividend Impact ............................................................................................. 23

2.1.2

DTR Index Level from Security Information (Security DTR) ........................... 23

2.1.3

Security Contribution to the Index ................................................................ 24

2.1.4

Security Daily Total Return ............................................................................ 24

2.1.4.1

Security Daily Gross Return ........................................................................................... 24

2.1.4.2

Security Daily Net Return .............................................................................................. 26© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

2.1.5

Initial Security Weight .................................................................................... 28

2.1.6

Currency ......................................................................................................... 29

2.1.7

Number Of Shares And Index Weighting Factor ............................................ 29

2.2

Reinvestment Methodology................................................................... 29

2.2.1

Timing of reinvestment .................................................................................. 30

2.2.2

Reinvestment Rules ....................................................................................... 30

2.2.3

Dividends Resulting in a Reinvestment Only ................................................. 31

2.2.4

Dividends Resulting in a Reinvestment or in a Price Adjustment .................. 32

2.2.5

Dividends Resulting in a Price Adjustment Only ............................................ 33

2.3

Processing Rules ..................................................................................... 34

2.3.1

Dividend Data................................................................................................. 34

2.3.2

Corporate Actions .......................................................................................... 34

2.3.3

Late Dividends................................................................................................ 34

2.3.4

Corrections ..................................................................................................... 34

2.3.5

Payment Default ............................................................................................ 35

2.3.6Country Exceptions ........................................................................................ 35

2.3.7

Taxes On Dividends ........................................................................................ 38

2.3.7.1

Tax Credit ....................................................................................................................... 38

2.3.7.2

Withholding Tax............................................................................................................. 38

2.3.8

Definitions ...................................................................................................... 42

Appendix I: Sunday Index Calculation .............................................. 44
Appendix II: Annualized Traded Value Ratio (ATVR) and Annual
Traded Value.................................................................................... 47
Appendix III: Exchange Rates ........................................................... 50
Appendix IV: Singapore & Malaysia – A History of Inclusion in the
Emerging and Developed Markets Indexes ...................................... 51
Appendix V: Singapore and Singapore Free ..................................... 55© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Appendix VI: Withholding Tax Rates ................................................ 56
Appendix VII: Closing Prices Policy ................................................... 59
Appendix VIII: Country Composition of MSCI Selected Regional
Indexes ............................................................................................ 72
Appendix IX: MSCI Real Time Indexes .............................................. 79
Appendix X: Index Calculation Methodology Using Index Divisors ... 82
Introduction ...................................................................................................... 82
Definitions ......................................................................................................... 82
Calculating the Index......................................................................................... 85
Calculating Index Unit Changes Due to Corporate Events and Index
Rebalancings ..................................................................................................... 86
Interim Constituents ......................................................................................... 87

Appendix XI: Index Correction Policy ............................................... 97
Appendix XII: MSCI Indexes with IDCo Fair Value Pricing ................. 98
MSCI Index Calculation Methodology Book Tracked Changes .......... 99© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

INTRODUCTION
This methodology book provides an exhaustive description of the rules and guidelines
followed by MSCI for construction and maintenance of the MSCI Global Investable Market
Indexes. Any exceptions to these rules are reviewed and approved by the MSCI Equity Index
Committee and are publically announced in advance of the implementation.
This methodology book describes MSCI’s general Index calculation methodology for the
MSCI Equity Indexes.
MSCI provides two ways of calculating MSCI Equity Indexes, either by using the Price
Adjustment Factor (PAF) or the Index Divisors (Index Divisors methodology available as anappendix).
These policies and guidelines affect all securities across the MSCI Equity Indexes andproducts. Unless otherwise stated the policies and guidelines apply therefore to all securities
in the MSCI Equity universe.
Please note that the index construction methodology and other guiding principles for the
MSCI Standard Indexes can be found in MSCI Global Investable Market Indexes Methodology
Indexes document, available at www.msci.com.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

MSCI EQUITY INDEXESThe MSCI Equity Indexes measure the performance of a set of equity securities over time.
The MSCI Equity Indexes are calculated using the Laspeyres’ concept of a weighted
arithmetic average together with the concept of chain-linking.
MSCI country and regional equity Indexes are calculated in “local currency” as well as in
USD, with price, gross and net returns.
Index levels are also available in several other currencies such as AUD, BRL, CAD, CHF, CNY,
EUR, GBP, HKD, INR, JPY, KRW, RUB and SGD.
While the local currency series of regional indexes cannot be replicated in the real world, it
represents the theoretical performance of an index without any impact from foreignexchange fluctuations — a continuously hedged portfolio.
Indexes are calculated 5 days a week, from Monday to Friday with the exception of a
selection of indexes that have Sunday calculations available.
In certain cases, where there are no qualifying securities, it is possible for MSCI Indexes to be
empty following a security deletion or GICS change. If an index becomes empty it would be
dynamically discontinued or ‘ruptured’. It is then possible for the index to be re-started oncea new security qualifies for the index, and this index level would be rebased to an
appropriate level at that time.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

1

MSCI PRICE INDEX METHODOLOGY
Price indexes measure the market prices performance for a selection of securities. They arecalculated daily and, for some of them, on a real time basis. Each index captures the market
capitalization weighted return of all constituents included in the index.

1.1

PRICE INDEX LEVELAs a general principle, today’s index level is obtained by applying the change in the market
performance to the previous period index level.

Where:
is the Price Index level in USD at time t-1

is the Adjusted Market Capitalization of the index in
USD at time tis the Initial Market Capitalization of the index in USD attime tis the Price Index level in local currency at time t-1
is the Adjusted Market Capitalization of theindex in USD converted using FX rate as of t-1 and used for local currency index at time t

Note:

1.1.1

was previously called

INDEX MARKET CAPITALIZATION∑© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015∑∑

Where:
is the number of shares of security s at the end of
day t-1.

is the price per share of the security s at time t.

is the price per share of security s at time t-1.

is the inclusion factor of the security s at time t. The inclusion factor
can be one or the combination of the following factors: Foreign Inclusion Factor,
Domestic Inclusion Factor, Growth Inclusion Factor, Value Inclusion Factor, Index
Inclusion Factor (*).

is the Price Adjustment Factor of the security s at time t.

is the FX rate of the price currency of security s vs USD at time t. It is the valueof 1 USD in foreign currency.



is the FX rate of the price currency of security s vs USD at time t-1. It is thevalue of 1 USD in foreign currency.



is the Internal Currency Index of price currency at time t. The ICI is different than 1
when a country changes the internal value of its currency (e.g. from Turkish Lira to New
Turkish Lira – ICI = 1,000,000).



is the Internal Currency Index of price currency at time t-1.

(*) From June 1 2007 to May 31 2008, to calculate the standard or small cap index market
capitalization (except for FM countries and China A), the security market cap should be
multiplied by the Standard or Small Cap Index Inclusion Factor.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

From September 1 2009 to November 30 2009, to calculate the China A and related indexes
markets capitalization, the China A securities market cap should be multiplied by theStandard Index Inclusion Factor.
The ‘Standard Index Inclusion Factor’ is solely used for the computation of the MSCIStandard Indexes, and not for the Large Cap, Mid Cap and Provisional Indexes, as these are
all constructed using the Global Investable Market Indexes methodology and were notsubject to the transition methodology.
The ‘Small Cap Index Inclusion Factor’ is not used for the computation of the MSCI Emerging
Markets and AC Small Cap Indexes, MSCI Small Cap Value and Growth, MSCI Provisional
Small Cap and MSCI Small Cap Sectors Indexes, as these are all constructed using the Global
Investable Market Indexes methodology and were not subject to the transition
methodology.

Note:
The only difference in the formulas between USD and local currency indexes calculation isthat the same exchange rate is used in the numerator and denominator for local currency,
which means that there is no impact of currency change in the performance. Time variant
exchange rates are used for the USD calculation.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

1.1.2

EXAMPLE OF CALCULATION

Example of index calculation.
Day 1
NumberOf
Shares t1

PricePer PricePer
Share t Share t-1

Inclusion
Factor t

IndexAdjusted
IndexAdjusted IndexInitialMar MarketCapFor
FXrate FXrate MarketCapUSD ketCapUSD t
Local t (see
PAF t
t
t-1
t (see 1.1.1)(see 1.1.1)
1.1.1)

Security A

150000152.60154.00

0.75

1

1.50

1.49

11,445,000

11,627,517

11,521,812

Security B

26000

98.40

105.00

1.00

1

1.15

1.14

2,224,696

2,394,737

2,244,211

Security C

2900001592.60

1603.50

0.60

1 125.00 125.50

2,216,899

2,223,179

2,208,067

Security D

360000268.00265.300.85

154,672,000

54,121,200

54,672,000

70,558,595

70,366,633

70,646,090

1.50

1.50

Total Indextt-1 daily perf

PriceIndexLevelUSD (see 1.1)

100.273

100.000

0.27%

PriceIndexLevelLocal (see 1.1)

100.397

100.000

0.40%

Day 2
Security C is ex Right issue 1 : 1 @ 1300
NumberOf
Shares t1

PricePer PricePer
Share t Share t-1

Inclusion
Factor t

IndexAdjusted
IndexAdjusted IndexInitialMar MarketCapFor
FXrate FXrate MarketCapUSD ketCapUSD t
Local t (see
PAF t
t
t-1
t (see 1.1.1)(see 1.1.1)
1.1.1)

Security A

150000160.00152.60

0.75

1

1.51

1.50

11,920,530

11,445,000

12,000,000

Security B

26000

95.00

98.40

1.00

1

1.16

1.15

2,129,310

2,224,696

2,147,826

Security C

2900001450.00

1592.60

0.60 1.1034 124.50 125.00

2,236,145

2,216,899

2,227,200

Security D

360000265.00268.000.85

53,701,987

54,672,000

54,060,000

69,987,971

70,558,595

70,435,026

1

1.51

1.50

Total Indextt-1 daily perf

PriceIndexLevelUSD (see 1.1)

99.462100.273-0.81%

PriceIndexLevelLocal (see 1.1)

100.221100.397-0.18%

Day 3
Security C has an increase of number of shares follow ing the right issue ex on Day 2
NumberOf
Shares t1

PricePer PricePer
Share t Share t-1

Inclusion
Factor t

IndexAdjusted
IndexAdjusted IndexInitialMar MarketCapFor
FXrate FXrate MarketCapUSD ketCapUSD t
Local t (see
PAF t
t
t-1
t (see 1.1.1)(see 1.1.1)
1.1.1)

Security A

150000165.00160.00

0.75

1

1.50

1.51

12,375,000

11,920,530

12,293,046

Security B

26000

102.00

95.00

1.00

1

1.17

1.16

2,266,667

2,129,310

2,286,207

Security C

5800001545.00

1450.00

0.60

1 124.45 124.50

4,320,289

4,053,012

4,318,554

Security D

360000266.00265.000.85

154,264,000

53,701,987

53,904,636

73,225,956

71,804,839

72,802,443

Total Index
t

1.50

1.51

t-1 daily perf

PriceIndexLevelUSD (see 1.1)

101.430

99.462

1.98%

PriceIndexLevelLocal (see 1.1)

101.614100.2211.39%© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 10 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

1.2

PRICE INDEX LEVEL (ALTERNATIVE CALCULATION FORMULA – CONTRIBUTIONMETHOD)
Another way to calculate the index level would be to use the initial weight and price returnof the individual securities included in the index:
∑

∑

1.2.1

SECURITY CONTRIBUTION TO THE INDEX

Where:


1.2.2

is the price return in USD of security s at time t.
is the price return of security s at time t converted
using FX rate as of t-1 and used for local currency calculation at time t.

TODAY’S INITIAL SECURITY WEIGHT∑∑© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Where:
is the number of shares of security s at the end of
day t-1.

is the price per share of security s at time t-1.

is the inclusion factor of security s at time t. The inclusion factor canbe one or the combination of the following factors: Foreign Inclusion Factor, Domestic
Inclusion Factor, Growth Inclusion Factor, Value Inclusion Factor, Index Inclusion Factor(*).

is the FX rate of the price currency of security s vs USD at time t-1. It is thevalue of 1 USD in foreign currency.

(*) From June 1 2007 to May 31 2008, to calculate the standard or small cap index market
capitalization (except for FM Countries and China A), the security market cap should be
multiplied by the Standard or Small Cap Index Inclusion Factor.
From September 1 2009 to November 30 2009, to calculate the China A and related indexes
markets capitalization, the China A securities market cap should be multiplied by theStandard Index Inclusion Factor.
The ‘Standard Index Inclusion Factor’ is solely used for the computation of the MSCIStandard Indexes, and not for the Large Cap, Mid Cap and Provisional Indexes, as these are
all constructed using the Global Investable Market Indexes methodology and were notsubject to the transition methodology.
The ‘Small Cap Index Inclusion Factor’ is not used for the computation of the MSCI Emerging
Markets and AC Small Cap Indexes, MSCI Small Cap Value and Growth, MSCI Provisional
Small Cap and MSCI Small Cap Sectors Indexes, as these are all constructed using the Global
Investable Market Indexes methodology and were not subject to the transition
methodology.

Note: Thethe security files and corresponds to theby theis also available inmultiplied

The
used to calculate today’s initial weight, available in
the MSCI products dated day , is shown as “Number of Shares (Today Index)”.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

1.2.3

SECURITY DAILY PRICE RETURN

[

]

[

]

Where:
is the Adjusted Market Capitalization of
security s in USD converted using FX rate as of t-1

is the Adjusted Market Capitalization of security s
in USD converted using FX rate as of t

is the Initial Market Capitalization of security s in USD
at time tis the number of shares of security s at the end of
day t-1.

is the price per share of security s at time t.

is the price per share of security s at time t-1.

is the inclusion factor of security s at time t. The inclusion factor canbe one or the combination of the following factors: Foreign Inclusion Factor, Domestic
Inclusion Factor, Growth Inclusion Factor, Value Inclusion Factor, Index Inclusion Factor(*).

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

is the Price Adjustment Factor of security s at time t.

is the FX rate of the price currency of security s vs USD at time t. It is the valueof 1 USD in foreign currency.



is the FX rate of the price currency of security s vs USD at time t-1. It is thevalue of 1 USD in foreign currency.



is the Internal Currency Index of price currency at time t. The ICI is different than 1
when a country changes the internal value of its currency (e.g. from Turkish Lira to New
Turkish Lira – ICI = 1,000,000).



is the Internal Currency Index of price currency at time t-1.

(*) From June 1 2007 to May 31 2008, to calculate the standard or small cap index market
capitalization (except for FM Countries and China A), the security market cap should be
multiplied by the Standard or Small Cap Index Inclusion Factor.
From September 1 2009 to November 30 2009, to calculate the China A and related indexes
markets capitalization, the China A securities market cap should be multiplied by theStandard Index Inclusion Factor.
The ‘Standard Index Inclusion Factor’ is solely used for the computation of the MSCIStandard Indexes, and not for the Large Cap, Mid Cap and Provisional Indexes, as these are
all constructed using the Global Investable Market Indexes methodology and were notsubject to the transition methodology.
The ‘Small Cap Index Inclusion Factor’ is not used for the computation of the MSCI Emerging
Markets and AC Small Cap Indexes, MSCI Small Cap Value and Growth, MSCI Provisional
Small Cap and MSCI Small Cap Sectors Indexes, as these are all constructed using the Global
Investable Market Indexes methodology and were not subject to the transition
methodology.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

1.2.4

EXAMPLE OF CALCULATION USING CONTRIBUTION

Day 1

NumberOf
Shares t1

PricePer PricePer
Share t Share t-1

Inclusion
Factor t

SecurityDaily SecurityPrice SecurityDaily SecurityPrice
InitialSecuri Price_Return contributionTo Price_Return contributionTo
FXrate FXrate tyWeight t USD t (seeIndexUSD Local t (seeIndexLocal
PAF ttt-1 (see 1.2.2)
1.2.3)(see 1.2.1)
1.2.3)(see 1.2.1)

Security A

150000152.60154.00

0.75

1

1.50

1.49

16.52%-1.57%-0.26%-0.91%-0.15%

Security B

26000

98.40

105.00

1.00

1

1.15

1.14

3.40%

-7.10%-0.24%-6.29%-0.21%

Security C

2900001592.60

1603.50

0.60

1 125.00 125.50

3.16%-0.28%-0.01%-0.68%-0.02%

Security D

360000268.00265.300.85

176.91%

1.02%

0.78%

1.02%

0.78%

1.50

1.50

Total Index

100.00%
t

0.27%

0.40%

t-1 daily perf

PriceIndexLevelUSD (see 1.2)

100.273

100.000

0.27%

PriceIndexLevelLocal (see 1.2)

100.397

100.000

0.40%

Day 2
Security C is ex Right issue 1 : 1 @ 1300
NumberOf
Shares t1

PricePer PricePer
Share t Share t-1

Inclusion
Factor t

SecurityDaily SecurityPrice SecurityDaily SecurityPrice
InitialSecuri Price_Return contributionTo Price_Return contributionTo
FXrate FXrate tyWeight t USD t (seeIndexUSD Local t (seeIndexLocal
PAF ttt-1 (see 1.2.2)
1.2.3)(see 1.2.1)
1.2.3)(see 1.2.1)

Security A

150000160.00152.60

0.75

1

1.51

1.50

16.22%

4.15%

0.67%

4.85%

0.79%

Security B

26000

95.00

98.40

1.00

1

1.16

1.15

3.15%

-4.29%-0.14%-3.46%-0.11%

Security C

2900001450.00

1592.60

0.60 1.1034 124.50 125.00

3.14%

0.87%

0.03%

0.46%

0.01%

Security D

360000265.00268.000.85

77.48%-1.77%-1.37%-1.12%-0.87%

1

1.51

1.50

Total Index

100.00%t-0.81%-0.18%

t-1 daily perf

PriceIndexLevelUSD (see 1.2)

99.462100.273-0.81%

PriceIndexLevelLocal (see 1.2)

100.221100.397-0.18%

Day 3
Security C has an increase of number of shares follow ing the right issue ex on Day 2
NumberOf
Shares t1

PricePer PricePer
Share t Share t-1

Inclusion
Factor t

SecurityDaily SecurityPrice SecurityDaily SecurityPrice
InitialSecuri Price_Return contributionTo Price_Return contributionTo
FXrate FXrate tyWeight t USD t (seeIndexUSD Local t (seeIndexLocal
PAF ttt-1 (see 1.2.2)
1.2.3)(see 1.2.1)
1.2.3)(see 1.2.1)

Security A

150000165.00160.00

0.75

1

1.50

1.51

16.60%

3.81%

0.63%

3.13%

0.52%

Security B

26000

102.00

95.00

1.00

1

1.17

1.16

2.97%

6.45%

0.19%

7.37%

0.22%

Security C

5800001545.00

1450.00

0.60

1 124.45 124.50

5.64%

6.59%

0.37%

6.55%

0.37%

Security D

360000266.00265.000.85

174.79%

1.05%

0.78%

0.38%

0.28%

Total Index

1.50

1.51

100.00%
t

1.98%

1.39%

t-1 daily perf

PriceIndexLevelUSD (see 1.2)

101.430

99.462

1.98%

PriceIndexLevelLocal (see 1.2)

101.614100.2211.39%© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

1.3

NEXT DAY INITIAL SECURITY WEIGHT∑∑

Where:


is the number of shares of security s at the end of day t.
is the price per share of the security s at time t.

is the inclusion factor of the security s at time t+1. The inclusion
factor can be one or the combination of the following factors: Foreign Inclusion Factor,
Domestic Inclusion Factor, Growth Inclusion Factor, Value Inclusion Factor, Index
Inclusion Factor (*).

is the FX rate of the price currency of security s vs USD at time t. It is the valueof 1 USD in foreign currency.

(*) From June 1 2007 to May 31 2008, to calculate the standard or small cap index market
capitalization (except for FM Countries and China A), the security market cap should be
multiplied by the Standard or Small Cap Index Inclusion Factor.
From September 1 2009 to November 30 2009, to calculate the China A and related indexes
markets capitalization, the China A securities market cap should be multiplied by theStandard Index Inclusion Factor.
The ‘Standard Index Inclusion Factor’ is solely used for the computation of the MSCIStandard Indexes, and not for the Large Cap, Mid Cap and Provisional Indexes, as these are
all constructed using the Global Investable Market Indexes methodology and were notsubject to the transition methodology.
The ‘Small Cap Index Inclusion Factor’ is not used for the computation of the MSCI Emerging
Markets and AC Small Cap Indexes, MSCI Small Cap Value and Growth, MSCI Provisional© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 16 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Small Cap and MSCI Small Cap Sectors Indexes, as these are all constructed using the Global
Investable Market Indexes methodology and were not subject to the transition
methodology.
The list of index constituents as of time t+1 is considered in the calculation.

Notes:
The
security files and corresponds to thetheis also available in themultiplied by

The
used to calculate next day’s initial weight, available in
the MSCI products dated day , is shown as “Number of Shares (Next Day Index)”.

1.4

CLOSING INDEX MARKET CAPITALIZATION TODAY USD (UNADJUSTED MARKETCAP TODAY USD)
The value of the index market capitalization as of the close of a day is calculated as follows:

∑

Where


is the number of shares of security s at the close of t.



is the security price per share of security s at time t.

is the inclusion factor of the security s at time t. The inclusion factor
can be one or the combination of the following factors: Foreign Inclusion Factor,
Domestic Inclusion Factor, Growth Inclusion Factor, Value Inclusion Factor, Index
Inclusion Factor (*).

is the FX rate of the price currency of security s vs USD at time t. It is the valueof 1 USD in foreign currency.

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MSCI.COM | PAGE 17 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015(*) From June 1 2007 to May 31 2008, to calculate the standard or small cap index market
capitalization (except for FM Countries and China A), the security market cap should be
multiplied by the Standard or Small Cap Index Inclusion Factor.
From September 1 2009 to November 30 2009, to calculate the China A and related indexes
markets capitalization, the China A securities market cap should be multiplied by theStandard Index Inclusion Factor.
The ‘Standard Index Inclusion Factor’ is solely used for the computation of the MSCIStandard Indexes, and not for the Large Cap, Mid Cap and Provisional Indexes, as these are
all constructed using the Global Investable Market Indexes methodology and were notsubject to the transition methodology.
The ‘Small Cap Index Inclusion Factor’ is not used for the computation of the MSCI Emerging
Markets and AC Small Cap Indexes, MSCI Small Cap Value and Growth, MSCI Provisional
Small Cap and MSCI Small Cap Sectors Indexes, as these are all constructed using the Global
Investable Market Indexes methodology and were not subject to the transition
methodology.
The list of index constituents as of time t should be considered in the calculation.
Effectively this figure represents the shares at the close on t, and does not include any of theeffects of corporate actions due at the open of the market the next day.
The closing market capitalization uses today’s price, t, as it represents the market
capitalization at the close of the calculation day t.

1.5

SECURITY INDEX OF PRICE IN LOCAL
The security Index of Price is distributed in MSCI daily and monthly security products [Itrepresents the price return from period to period by utilizing the concept of an index ofperformance with an arbitrary base value. The index of price is fully adjusted for capitalchanges and is expressed in local currency.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Where:


is Security Price Index level at time t-1
is the Adjusted Market Capitalization of
security s in USD converted using FX rate as of t-1

is the Initial Market Capitalization of security s in USD
at time tis the number of shares of security s at the end of
day t-1.

is the price per share of security s at time t.

is the price per share of security s at time t-1.

is the inclusion factor of security s at time t. The inclusion factor canbe one or the combination of the following factors: Foreign Inclusion Factor, Domestic
Inclusion Factor Growth Inclusion Factor, Value Inclusion Factor, Index Inclusion Factor(*).

is the Price Adjustment Factor of security s at time t.

is the FX rate of the price currency of security s vs USD at time t-1. It is thevalue of 1 USD in foreign currency.



is the Internal Currency Index of price currency at time t. The ICI is different than 1
when a country changes the internal value of its currency (e.g. from Turkish Lira to New
Turkish Lira – ICI = 1,000,000).



is the Internal Currency Index of price currency at time t-1.

(*) From June 1 2007 to May 31 2008, to calculate the standard or small cap index market
capitalization (except for FM Countries and China A), the security market cap should be
multiplied by the Standard or Small Cap Index Inclusion Factor.
From September 1 2009 to November 30 2009, to calculate the China A and related indexes
markets capitalization, the China A securities market cap should be multiplied by theStandard Index Inclusion Factor.
The ‘Standard Index Inclusion Factor’ is solely used for the computation of the MSCIStandard Indexes, and not for the Large Cap, Mid Cap and Provisional Indexes, as these are
all constructed using the Global Investable Market Indexes methodology and were notsubject to the transition methodology.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

The ‘Small Cap Index Inclusion Factor’ is not used for the computation of the MSCI Emerging
Markets and AC Small Cap Indexes, MSCI Small Cap Value and Growth, MSCI Provisional
Small Cap and MSCI Small Cap Sectors Indexes, as these are all constructed using the Global
Investable Market Indexes methodology and were not subject to the transition
methodology.

1.6

NOTE ON INDEX CALCULATION IN LOCAL CURRENCY
The MSCI Country and Regional Indexes are calculated in local currency as well as in USD.
The concept of a “local currency” calculation excludes the impact of currency fluctuations.
Note that for a country index, the local currency index will not be the same as an index
calculated with the official currency of that country, if there is more than one currency oflisting.
All currencies of listing are considered in the index calculation in local currency where
current pricest and previous day pricest-1 are converted into USD using the same exchange
rate (exchange ratet-1) in the numerator and denominator. As a consequence, the FX factor
drops out of the equation.
The USD calculation includes exchange rates at t and t-1. Therefore, the local currency
calculation only represents the price appreciation or depreciation of the securities, whereas
the USD calculation also accounts for the performance of the currency (or currencies)
relative to the USD.

1.7

CONVERSION OF INDEXES INTO ANOTHER CURRENCY
An index can be calculated into any currency by converting the index in USD into theselected currency using the formula below.
If the base date of the index is prior to the start date of the currency, the indexes should be
rebased and converted using the following formula:

Note that 100 in the formula is the base value. This base value can be different than 100(e.g. 1000 depending on the indexes).

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

If the base date of the index is equal or posterior to the start date of the currency, theindexes should be converted only, using the following formula:

Example:Calculation of the The World Index in EUR as of October 20, 1999:
Note that the start date of EUR is 31-Dec-1998

The World Index in USD as of 31-Dec-98 = 1,149.951577
The World Index as of 20- Oct- 99 = 1,224.048387
FxRate EUR vs USD as of 31-Dec- 98 = 0.8516074
FxRate EUR vs USD as of 20-Oct-99 = 0.9279451© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

2

MSCI DAILY TOTAL RETURN (DTR) INDEX METHODOLOGY
Total return indexes measure the market performance, including price performance andincome from regular cash distributions (cash dividend payments or capital repayments).
Regular cash distributions paid out of share capital or capital contribution reserves aretreated in the same manner as regular cash dividends paid out of retained earnings. This
income is reinvested in the index and thus makes up part of the total index performance.
MSCI’s Daily Total Return (DTR) methodology reinvests regular cash distributions in indexes
on the ex-date of such distributions. . It applies to all index families. Regular cash
distributions are not considered in price indexes, except for special dividends and capital
repayments deemed extraordinary in certain circumstances described below.
The standard Daily Total Return (DTR) Indexes are calculated and distributed on a daily basis.
The indexes are available in USD and local currency (no currency impact), with gross and net
total return.

2.1

CALCULATION METHODOLOGY

Where:
is the Daily Total Return index level in USD at time t-1

is the gross or net amount of dividends in USD to be
reinvested in the index in USD at time tis the gross or net amount of dividend in USD
converted using FX rate as of t-1 to be reinvested in the local currency index at time t

the Daily Total Return index level in local currency at time t-1© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

2.1.1

DIVIDEND IMPACT∑∑

Where:
is the number of shares of the security s at theend of the dividend ex-date-1.



2.1.2

is the gross or net dividend per share expressed in the same
currency unit as the price per share of the security s to be reinvested at time t.

DTR INDEX LEVEL FROM SECURITY INFORMATION (SECURITY DTR)
Another way to calculate a DTR index would be to use the security initial weight and security
total return:∑∑© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

2.1.3

SECURITY CONTRIBUTION TO THE INDEX
Calculation Formulas:

Where:
is the gross or net return in USD of security s at time
t.



2.1.4

is the gross or net return of security s at time t
converted using the FX rate as of t-1 and used for local currency calculation at time t.

SECURITY DAILY TOTAL RETURN

2.1.4.1 SECURITY DAILY GROSS RETURN

[

[

]

]

Where

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Where


is the Adjusted Market Capitalization of
security s in USD converted using FX rate as of t-1

is the Adjusted Market Capitalization of security s
in USD converted using FX rate as of t

is the Initial Market Capitalization of security s in USD
at time tis the inclusion factor of the security s at time t. The inclusion factor
can be one or the combination of the following factors: Foreign Inclusion Factor,
Domestic Inclusion Factor, Growth Inclusion Factor, Value Inclusion Factor, Index
Inclusion Factor (*).

is the FX rate of the price currency of security s vs USD at time t. It is the valueof 1 USD in foreign currency.



is the FX rate of the price currency of security s vs USD at time t-1. It is thevalue of 1 USD in foreign currency.



is the number of shares of security s at the endof the dividend ex-date-1.

is the gross dividend per share expressed in the same
currency unit as the price per share of the security s to be reinvested at time t.

is the Internal Currency Index of price currency at time t. The ICI is different than 1
when a country changes the internal value of its currency (e.g. from Turkish Lira to New
Turkish Lira – ICI = 1,000,000).



is the Internal Currency Index of price currency at time t-1.

(*) From June 1 2007 to May 31 2008, to calculate the standard or small cap index market
capitalization (except for FM Countries and China A), the security market cap should be
multiplied by the Standard or Small Cap Index Inclusion Factor.
From September 1 2009 to November 30 2009, to calculate the China A and related indexes
markets capitalization, the China A securities market cap should be multiplied by theStandard Index Inclusion Factor.
The ‘Standard Index Inclusion Factor’ is solely used for the computation of the MSCIStandard Indexes, and not for the Large Cap, Mid Cap and Provisional Indexes, as these are© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

all constructed using the Global Investable Market Indexes methodology and were notsubject to the transition methodology.
The ‘Small Cap Index Inclusion Factor’ is not used for the computation of the MSCI Emerging
Markets and AC Small Cap Indexes, MSCI Small Cap Value and Growth, MSCI Provisional
Small Cap and MSCI Small Cap Sectors Indexes, as these are all constructed using the Global
Investable Market Indexes methodology and were not subject to the transition
methodology.
2.1.4.2 SECURITY DAILY NET RETURN

[

]

[

]

Where

Where


is the Adjusted Market Capitalization of
security s in USD converted using FX rate as of t-1

is the Adjusted Market Capitalization of security s
in USD converted using FX rate as of t

is the Initial Market Capitalization of security s in USD
at time t© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

is the inclusion factor of the security s at time t. The inclusion factor
can be one or the combination of the following factors: Foreign Inclusion Factor,
Domestic Inclusion Factor, Growth Inclusion Factor, Value Inclusion Factor, Index
Inclusion Factor (*).

is the FX rate of the price currency of security s vs USD at time t. It is the valueof 1 USD in foreign currency.



is the FX rate of the price currency of security s vs USD at time t-1. It is thevalue of 1 USD in foreign currency.



is the number of shares of the security s at theend of dividend ex-date-1.

is the net dividend per share expressed in the same currency
unit as the price per share of the security s to be reinvested at time t.

is the Internal Currency Index of price currency at time t. The ICI is different than 1
when a country changes the internal value of its currency (e.g. from Turkish Lira to New
Turkish Lira – ICI = 1,000,000).



is the Internal Currency Index of price currency at time t-1.

(*) From June 1 2007 to May 31 2008, to calculate the standard or small cap index market
capitalization (except for FM Countries and China A), the security market cap should be
multiplied by the Standard or Small Cap Index Inclusion Factor.
From September 1 2009 to November 30 2009, to calculate the China A and related indexes
markets capitalization, the China A securities market cap should be multiplied by theStandard Index Inclusion Factor.
The ‘Standard Index Inclusion Factor’ is solely used for the computation of the MSCIStandard Indexes, and not for the Large Cap, Mid Cap and Provisional Indexes, as these are
all constructed using the Global Investable Market Indexes methodology and were notsubject to the transition methodology.
The ‘Small Cap Index Inclusion Factor’ is not used for the computation of the MSCI Emerging
Markets and AC Small Cap Indexes, MSCI Small Cap Value and Growth, MSCI Provisional
Small Cap and MSCI Small Cap Sectors Indexes, as these are all constructed using the Global
Investable Market Indexes methodology and were not subject to the transition
methodology.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

2.1.5

INITIAL SECURITY WEIGHT∑∑

Where:
is the number of shares of security s at the end of
day t-1.

is the price per share of security s at time t-1.

is the inclusion factor of security s at time t. The inclusion factor canbe one or the combination of the following factors: Foreign Inclusion Factor, Domestic
Inclusion Factor, Growth Inclusion Factor, Value Inclusion Factor, Index Inclusion Factor(*).

is the FX rate of the price currency of security s vs USD at time t-1. It is thevalue of 1 USD in foreign currency.

(*) From June 1 2007 to May 31 2008, to calculate the standard or small cap index market
capitalization (except for FM countries and China A), the security market cap should be
multiplied by the Standard or Small Cap Index Inclusion Factor.
From September 1 2009 to November 30 2009, to calculate the China A and related indexes
markets capitalization, the China A securities market cap should be multiplied by theStandard Index Inclusion Factor.
The ‘Standard Index Inclusion Factor’ is solely used for the computation of the MSCIStandard Indexes, and not for the Large Cap, Mid Cap and Provisional Indexes, as these are
all constructed using the Global Investable Market Indexes methodology and were notsubject to the transition methodology.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

The ‘Small Cap Index Inclusion Factor’ is not used for the computation of the MSCI Emerging
Markets and AC Small Cap Indexes, MSCI Small Cap Value and Growth, MSCI Provisional
Small Cap and MSCI Small Cap Sectors Indexes, as these are all constructed using the Global
Investable Market Indexes methodology and were not subject to the transition
methodology.
2.1.6

CURRENCY
For index calculations, all dividends are converted into USD at the spot rate of the ex date.

2.1.7

NUMBER OF SHARES AND INDEX WEIGHTING FACTOR
A dividend amount is expressed per share entitled to the dividend. Since the day before theex-date is the last day on which the share is entitled to the dividend, the total dividend per
security reinvested into an index is equal to the number of shares at the close of the exdate-1 multiplied by the dividend per share.
In addition, a weighting factor of a security in the index is applied to the total dividend
amount to be reinvested. This can be the Domestic Inclusion Factor (DIF), the Foreign
Inclusion Factor (FIF), the Value Inclusion Factor (VIF), the Growth Inclusion Factor (GIF) or
any inclusion factor considered in the price index calculation.

2.2

REINVESTMENT METHODOLOGY
Gross Daily Total Return
This series approximates the maximum possible reinvestment of regular cash distributions(cash dividends or capital repayments). The amount reinvested is the cash distributed toindividuals resident in the country of the company, but does not include tax credits.
Net Daily Total Return
This series approximates the minimum possible reinvestment of regular cash
distributions. Provided that the regular capital repayment is not subject to withholding tax,
the reinvestment in the Net Daily Total Return is free of withholding tax. Effective December
1, 2009, the regular cash dividend is reinvested after deduction of withholding tax by
applying the maximum rate of the company’s country of incorporation applicable toinstitutional investors. MSCI uses different withholding taxes depending if the indexes areinternational or domestic:International indexes: the maximum rate applicable to non-resident institutional
investors who do not benefit from double taxation treaties.



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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

For more information on how taxes are applicable to dividends, please refer to the Appendix
for details about the withholding tax rates for the various countries.
2.2.1

TIMING OF REINVESTMENT
The amount of an announced regular cash distribution is reinvested on the ex-date of such
distribution on its principal exchange. For securities trading on more than one exchange,
MSCI uses the ex-date at the exchange from which MSCI sources the security’s price.
If a security does not trade on the ex-date or on the scheduled reinvestment date of theregular cash distribution, the reinvestment is postponed to the day when the security
resumes trading. The scheduled reinvestment date of a dividend can be a date later than thedividend ex-date in cases including, but not limited to a late dividend or a dividend
correction.

2.2.2

REINVESTMENT RULES

Distribution
Type

Size ofsecurity’s cum
price

Recurrence

Price
Adjustment
FactorIncluded in
the security’s
yield

More
details in
sectionRegular Cash
Dividend

-

-

No

Yes

2.2.3

<5%

Less than 3 consecutive
years

No

No

<5%

3 consecutive years or
more

No

Yes

Special Cash
Dividend

Distribution
Type
CapitalRepayment

2.2.4
≥5%

Less than 3 consecutive
years

Yes

No

≥5%

3 consecutive years or
more

Yes

Yes

Price
Adjustment
FactorIncluded in
the security’s
yield

More
details in
section

Yes

No

Yes

2.2.3

No

Yes

No

2.2.5

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There are two principal guidelines in regards to cash distributions reinvestments:
A cash distribution – in the form of regular cash dividend or regular capital repayment is reinvested among all the constituents in an index. It is not considered in the MSCI
Price indexes. Note that these distributions are taken into account in the underlying
security’s yield calculation.

A special cash dividend that is unusually large, i.e. greater than or equal to 5% of the
security cum price, or a capital repayment deemed to be extraordinary i.e. unlikely torecur on a regular basis, is reinvested by applying a PAF and is hence taken into accountin MSCI Price indexes as well as in the MSCI DTR Indexes.

These guidelines are discussed in greater detail below.
2.2.3

DIVIDENDS RESULTING IN A REINVESTMENT ONLY
The following cash distributions are reinvested in the MSCI DTR Index:
Regular Cash Dividend
A regular cash dividend is a distribution of cash made by a company to its shareholders andis paid out of operating profits or retained earnings. Regular cash dividends, regardless of
their size, are reinvested on the ex-date in the MSCI DTR Indexes.
Regular Capital Repayment
A capital repayment or return of capital is characterized by a cash distribution from thecompany’s share capital or capital surplus to its shareholders. A capital repayment,
regardless of its size, is considered as regular, if the cash distribution is in lieu of a regularcash dividend, or is in line with the dividend policy of the company or with the historical cash
distributions. Provided that the capital repayment is not subject to withholding tax, thereinvestment in the MSCI DTR Indexes is free of withholding tax.
In Taiwan, a cash distribution paid out of capital surplus is considered as regular unlessspecified by the company that the distribution is deemed to be extraordinary. The cash
distribution is reinvested in the MSCI DTR Indexes. Regarding the withholding tax treatment,
please refer to sub-section 2.3.7.2.1 below.
Optional Dividend
In the case of an optional dividend, the company offers shareholders the choice of receiving
the dividend either in cash or in shares. However, shareholders electing the cash option may
receive the dividend consideration in cash or shares, or some combination of cash andshares.

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MSCI assumes that shareholders receive the default distribution. If no default distribution isavailable, MSCI assumes that shareholders elect the cash option. MSCI therefore reinvests
the dividend amount on the ex-date in the MSCI DTR Indexes. Please refer to the section 4.3of the MSCI Corporate Events Methodology book for more information regarding optional
dividends treatment.
Interest on CapitalThe ‘interest on capital’ dividend is a cash payment to shareholders accounted for as a pretax interest expense by the company. The balance sheet and the book value do not change.
Interests on capital are common in Brazil.
2.2.4

DIVIDENDS RESULTING IN A REINVESTMENT OR IN A PRICE ADJUSTMENT
The dividends below are reinvested in the MSCI DTR Index if the dividend impact on the cum
price is less than 5%.
However, if the impact is greater than or equal to 5%, the dividend will be reflected in the
MSCI Index through a price adjustment.
Special/Extraordinary Cash Dividend
The company declares the dividend as special or extraordinary. It is funded by a special
event or from extraordinary profits. MSCI may consider irregular and unusually large
dividends as special even if they are not declared as such by the company.
Special cash dividends that are smaller than 5% of the cum price of the underlying security
are reinvested in the MSCI DTR Indexes, but are not included in the yield calculation, unlessthey are paid for at least three consecutive years.
Special cash dividends that are greater than or equal to 5% of the cum price of theunderlying security are reflected in the MSCI Indexes through an adjustment on their exdate. A Price Adjustment Factor (PAF) using the gross dividend amount is applied to the
MSCI Price Indexes, the MSCI Gross DTR Indexes and the MSCI Net DTR Indexes on the exdate of the special cash dividend.
For special cash dividends that are greater than or equal to 5% of the cum price of theunderlying security and subject to a withholding tax, as defined in Section 2.3.7.2, MSCI
reinvests a negative amount corresponding to the withholding tax in the MSCI Net DTR
Indexes only. This negative reinvestment is reflected simultaneously with the PAF on the exdate of the special cash dividend.
Any special cash dividend, distributed for at least three consecutive years, is taken into
account in the yield calculation of the underlying security, regardless of its size.

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Commemorative Dividend (memorial)
A company declares a dividend as commemorative/memorial. The funds come fromextraordinary profit or cash generated by a special event.
Retroactive/Arrears Dividend
Retroactive dividends are paid in Italy when a company has to pay a dividend to revenueguaranteed (RISP) shares to make up for previous years’ non-payments.
Special Dividend to Non-Domestic Shareholders
A company pays its non-domestic shareholders a bonus dividend to compensate for the tax
credit distributed to domestic shareholders. This is a common practice in New Zealand.
2.2.5

DIVIDENDS RESULTING IN A PRICE ADJUSTMENT ONLY
A PAF is applied to the security in the MSCI Price Indexes, the MSCI Gross DTR Indexes andthe MSCI Net DTR Indexes, in the following cases:
Stock Dividend (stock bonus/gratis issue)
The company issues shares at no direct cost to the shareholders. The funds are taken out
from the current year’s earnings. In the case of a stock bonus/gratis issue, the company
distributes a part of the reserves (retained earnings from previous years) to its shareholders.
For Taiwanese stock dividends subject to withholding taxes as defined in Section 2.3.7.2,
MSCI reinvests a negative amount corresponding to the withholding tax in the MSCI Net DTR
Indexes only. This negative reinvestment is reflected simultaneously with the PAF on the exdate of the stock dividend.
Extraordinary Capital Repayment
For the capital repayments that are deemed to be extraordinary compared to the dividend
policy of the company or to the historical cash distributions, the price of the security is
adjusted on the ex-date of the extraordinary capital repayment, regardless of its size.
Dividend Paid in Shares of another Company
The company distributes stock of another company as a dividend. The number of shares
held remains the same, but the price will decrease by the value of the distributed security.
MSCI considers other cash payments related to Corporate Events, such as mergers,
acquisitions, liquidations, etc. on a case-by-case basis.

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2.3

PROCESSING RULES

2.3.1

DIVIDEND DATA
Raw dividend data is provided by multiple electronic data feeds and is checked forcompleteness and correctness. MSCI’s Daily Total Return process requires that dividends beconfirmed by at least two distinct data sources. Most dividends are received and validated
through electronic feeds, but some dividends may require confirmation from other sources,
such as stock exchanges or the company. In addition, MSCI monitors securities for which a
dividend is expected based on previous dividend announcement frequency, but which has
not yet been received through the regular data sources.

2.3.2

CORPORATE ACTIONS
A corporate action, which changes the number of shares outstanding for a company, may
take place between the dividend’s announcement date and its ex-date. As the number ofshares on the day preceding the ex-date is used to calculate the dividend amount to be
reinvested, MSCI adjusts the dividend to reflect the number of shares on that day.
Following certain corporate events, the number of shares used in MSCI Index calculations on
the cum date may include shares that are not issued yet or that are not entitled to thedividend. In those cases, MSCI reinvests the dividend on the ex-date as if all shares included
in MSCI Index calculations were entitled to the dividend.

2.3.3

LATE DIVIDENDS
A late dividend is a dividend that is only known after its ex-date. It is processed under thecorrection policy as described in sub-section 2.3.4 above.

2.3.4

CORRECTIONS
A dividend that has been reinvested may need to be amended, due to an error in its ex-date,in the dividend amount, or in the dividend currency. MSCI will give advance notification for
dividend corrections that are received after their ex-date. Consequently, the correction in
the index will be postponed to the next business day following the reception andannouncement of the information.
The following rules apply:Action is taken only if the error is discovered within 12 months of the ex date.

In the case of a correction, MSCI uses the number of shares at the close of the cum date.
The spot rate of the reinvestment date is used for currency conversion.

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2.3.5



A historical correction is applied to all indexes impacted by more than 50 basis points1 if
the impact on a country or World / EM industry group index is over 50 basis points.
Starting December 1, 2010, for the MSCI Frontier Markets Indexes (including MSCI GCCCountries Indexes), there will be a historical correction only if the impact on the MSCI
Frontier Markets region is over 50 basis points.



The security that needs a dividend correction may have changed its status for index
inclusion between the ex-date and the correction date. For example, this may be due tothe security’s subsequent exclusion from the index, or a change in its industry or
country classification. Applying the correction with the current status may reinvest
dividends into the wrong index. If there is a change in the security’s index inclusion
status between the ex-date and the correction date, no correction amount will be
reinvested.

PAYMENT DEFAULT
A correction is applied when a dividend is declared unpaid (payment default). This may
result in a negative reinvestment. Past index levels are not corrected.
The following rules apply:

2.3.6



Action is taken only if the payment default is discovered within 12 months of the exdate and is in line with the price index correction policy, where MSCI applies a 12 monthcorrection period.



MSCI uses the number of shares effective at the close of the original cum date. The
default amount is reinvested on the next business day following the reception andconfirmation of at least two distinct data sources. . The spot rate of the reinvestment
date is used for currency conversion.

COUNTRY EXCEPTIONSJapan:
Many Japanese companies declare their dividends after the ex-date. As estimated dividends
are available before the ex-date and are broadly used, an estimation of the dividend isreinvested on the ex-date. When a company does not declare an estimated dividend, MSCI
uses the previous year’s dividend amount from the same period as the estimation. Should
the difference between the estimated and ratified dividend amount warrant correction, it

1

The 50 basis point limit is linked to the price index correction policy and will be revised accordingly to reflect any
changes in this policy.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

will be processed as a payment default (reinvestment without correcting past index levels)on the next business day following the reception date from the data sources.
Korea:
Many Korean companies declare their dividends after their ex-date. As no estimateddividends provided by the companies are available before the ex-date, the dividends are
reinvested on the next business day following the reception and confirmation of at least two
distinct data sources (in accordance with the section 2.3.1).
These reinvestments after the ex-date do not trigger any correction of the index levels.
MSCI uses the number of shares effective on the day prior to the ex-date to reinvest thedividend.
In the rare case of Korean companies declaring their dividends prior to their ex-date, MSCI
reinvests dividends into the MSCI DTR Indexes on the day the security is quoted ex-dividendon its principal exchange (in accordance with the section 2.2.1).
Should the dividend amount for Korean companies change following approval by theshareholders at the general meeting, MSCI will reinvest the difference between the amountinitially announced by the company and the final amount approved by the shareholders.
This does not trigger any correction of past index levels.
Starting December 2014, for dividends with an ex date from December 2014 onwards, MSCI
will transition to the enhanced methodology for Korean dividends, as per the following:
Under the enhanced methodology, MSCI will reinvest an estimated dividend amount for
Korean securities on the ex-date of the dividend.
The estimate will be calculated as the previous year’s dividend amount from the same
period, adjusted by any capital changes if necessary. If no dividend was paid from the same
period in the previous year or an estimated dividend amount is not available, MSCI will
reinvest the dividend amount of zero.
Once a Korean company announces the actual dividend amount, MSCI will reinvest on thenext business day following reception of data from MSCI’s sources, all differences between
the estimated and ratified dividend amount, if any, in the MSCI DTR Indexes without
correcting index levels.
These estimates will be used for the calculation of the dividend yield as if the amounts were
not estimates.

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Russia:For depositary receipts (DRs) of Russian companies, only an estimated dividend amount per
share in USD is available prior to the ex-date. Therefore, on the ex date of the DR security,
MSCI reinvests the estimated dividend amount in USD in the MSCI DTR Indexes. Once theactual dividend amount is announced by the depositary bank, MSCI reinvests the difference,
if any, between the USD dividend amount per share already reinvested on the ex date andthe USD dividend amount per share publicly announced by the depositary bank. Whenpossible, MSCI reinvests this difference on the dividend pay date.
The reinvestment of the difference in the MSCI DTR Indexes does not trigger any correctionof past index levels.
In addition, when MSCI reinvests the difference on or around the pay date, fees withheld by
the depositary bank, if any, are taken into in the MSCI Net DTR Indexes.
In the case the dividend amount and ex date are known or captured by MSCI only on the
security’s ex date itself, MSCI uses a threshold based on the dividend size to determine thereinvestment timing:

If a total dividend amount is below USD 1 billion2 and is announced or captured on the
ex date, then MSCI reinvests the dividend amount intraday in the MSCI DTR Indexes. In
addition, MSCI sends an intraday announcement to its clients.



If a total dividend distribution is above USD 1 billion and is announced or captured on
the ex date, then MSCI postpones the dividend reinvestment to the second business day
after its ex date. In addition, MSCI sends an intraday announcement to its clients.

Note that MSCI uses the number of shares effective on the day prior to the ex-date toreinvest the dividend.
Should the dividend amount for Russian companies change following approval by theshareholders at the general meeting, MSCI will reinvest the difference between the amountinitially announced by the company and the final amount approved by the shareholders.
This reinvestment does not trigger any correction of past index levels.
Singapore:Some companies in Singapore, for example Real Estate Investment Trusts (REITs), pay
advanced cash distributions at the time of placement of new shares, in order to ensure
fairness to the existing shareholders. This distribution is a part of the regular quarterly cash
dividends announced by the companies. If an estimated amount or range of dividend
2

The size of the total dividend amount is calculated as follows: dividend per share amount in Ruble * FX Rate (USD/RUB)
on the ex date * Number of Shares * Foreign Inclusion Factor© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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amount is declared by the company before the ex-date, MSCI reinvests the estimatedamount or lower range of the dividend amount in MSCI DTR Indexes on the day the security
is quoted ex-dividend on its principal exchange (in accordance with the section 2.2.1).
Should the dividend amount change after the ex-date following company announcement,
MSCI will reinvest the difference between the amount initially announced by the company
and the final amount on the next business day following the reception and confirmation ofat least two distinct data sources. These reinvestments after the ex-date do not trigger any
correction of past index levels.
USA: Redemption Right
When a company redeems shares distributed to shareholders due to a poison pill rights
issue (applies mainly in USA), there may be a change in the company’s capital structure. In
this case MSCI will apply a price adjustment.
2.3.7

TAXES ON DIVIDENDS
Shareholders may be taxed on dividend payments. Tax rates vary depending on thecompany’s and shareholder’s country of domicile. Tax data is monitored on a regular basis
and is updated when necessary.

2.3.7.1 TAX CREDIT
A tax credit related to a dividend can be considered as a reimbursement of tax alreadyreceived by the fiscal administration. In countries operating under an imputation tax system,
a company’s annual earnings are taxed before distribution to the shareholders, and then theshareholders pay taxes on the dividend. Some countries operating under an imputation tax
system provide shareholders with a tax credit to offset the amount of the tax they would
otherwise owe in respect of the dividend.3 MSCI does not take into account the amount of atax credit in calculating either gross or net dividends.
2.3.7.2 WITHHOLDING TAX
A withholding tax related to a dividend is a tax on the income of the shareholder withheld by
the company when the dividend is paid to a shareholder. The withholding tax rate depends
on the tax status of the shareholder. MSCI uses the maximum withholding tax rateapplicable to institutional investors in calculating MSCI net dividends. A non-resident
shareholder must also pay taxes on dividends in his/her domestic country as part of his/her
3

Singapore and Malaysia completely migrated to a one-tier tax system from imputation system effective January 1, 2008
and January 1, 2014 respectively. Under a one-tier or single-tier tax system, a company pays a tax on its taxable income
and shareholders are not charged with a tax on dividends paid to them by the company.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

income taxes. Countries may eliminate this double taxation by signing ‘bi-lateral’ double
taxation treaties.
MSCI uses companies’ country of incorporation to determine the relevant dividend
withholding tax rates in calculating the net dividends and the MSCI Net DTR Indexes. In cases
where the withholding tax rate in the company’s country of incorporation is higher than the
MSCI company’s country of classification as determined in accordance to Appendix III of the
MSCI Global Investable Markets Indexes Methodology, MSCI will make a specific analysis todetermine the actual withholding tax rate applied to non-resident institutional investors.
Companies’ country of incorporations are reviewed on a semi-annual basis and changes tocompanies’ withholding tax rates, if any, are made with the May and November SemiAnnual Index Reviews.
In the calculation of the MSCI Net DTR International Indexes, MSCI uses the withholding tax
rate applicable to non-resident institutional investors that do not benefit from double
taxation treaties.
In the calculation of the MSCI Net DTR Domestic Indexes, MSCI uses the withholding tax rateapplicable to domestic institutional investors.
Provided that the regular capital repayment is not subject to withholding tax, thereinvestment in the MSCI Net DTR is free of withholding tax.
2.3.7.2.1

COUNTRY EXCEPTIONS

Australian Dividends
Some Australian companies pay their dividends with franking credits attached in order topass on to investors the value of any tax that the company has already paid on its profits.
Dividends can be fully franked, partially franked or unfranked. Foreign non-resident
investors are subject to the Australian dividend withholding tax on the unfranked portion of
a dividend. However, foreign non-resident investors are not subject to the Australian
dividend withholding tax on the unfranked portion of the dividend to the extent that it isdeclared as conduit foreign income4 by Australian companies, or on the franked portion of
the dividend.
In the calculation of the MSCI Net DTR International Indexes for Australian dividends, MSCI
uses the withholding tax rate5 applicable to foreign non-resident institutional investors on
4

Conduit foreign income is foreign income received by a foreign resident via an Australian corporate tax entity, and isthat income which would ordinarily not be taxed under the relevant Australian tax laws (source: Australian Government,
The Treasury).
5

Please refer to the Appendix for the latest withholding tax rate for Australia.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

the unfranked portion of the dividend that is not designated as conduit foreign income.
MSCI does not apply withholding tax rate on the franked portion of the dividend or theunfranked portion of the dividend declared to be conduit foreign income.
In the case that the franking percentage and/or the conduit foreign income not publicly
available prior to the ex-date, the franking percentage and/or the conduit foreign income
will be assumed zero correspondingly.
The effective withholding tax rate being applied to the Australian dividends in the MSCI NetDTR International Indexes is as follows.
Effective withholding tax rate = Australia default withholding tax rate x (100% - franking % conduit foreign income %)Examples of Calculation

Franking
Percentage

Conduit
Foreign
IncomePercentage

Default
Withholding
Tax Rate

Effective
Withholding
Tax Rate

Gross
AmountNet
AmountSecurity A

100%

0%

30%

0%

AUD 2.56

AUD 2.56

Security B

75%

25%

30%

0%

AUD 1.47

AUD 1.47

Security C

50%

0%

30%

15%

AUD 1.00

AUD 0.85

Security D

0%

50%

30%

15%

AUD 2.00

AUD 1.70

Taiwanese Stock Dividends
In Taiwan, stock dividends can be paid out from capital surplus or retained earnings. The
portion of stock dividends paid out of retained earnings is subject to the default withholding
tax rate against the par value of each new share. The portion of stock dividends paid out of
capital surplus is not subject to a withholding tax.
To take into account this withholding tax in the MSCI Indexes, MSCI reinvests a negative
amount corresponding to the withholding tax in the MSCI Net DTR Indexes only.
This negative amount of the withholding tax is calculated using the following formula.
Withholding tax of Taiwanese stock dividend = Number of shares received which are subject
to the withholding tax x par value of each share x Taiwanese default withholding tax rate6.
6

Please refer to the Appendix for the latest withholding tax rate for Taiwan© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

This negative reinvestment is reflected simultaneously with the PAF on the ex-date of thestock dividend.
Taiwanese Capital Repayments
In Taiwan, the cash distributions paid out from the types of capital surplus which are
originally contributed by shareholders are not subject to any withholding tax. Otherwise, thecash distributions paid out from the types of capital surplus not originally contributed byshareholders are subject to a withholding tax. The cash distribution paying out of the capitalsurplus originally contributed by shareholders is therefore reinvested in the MSCI DTR
Indexes free of withholding tax. Otherwise, the cash distribution paying out from the equity
capital not originally contributed by shareholders is reinvested with the default withholding
tax rate. In the case that a Taiwanese company does not clarify the source of capital surplus,
the cash distribution is reinvested in the MSCI DTR Indexes free of withholding tax.
Thailand Cash Dividends
In Thailand, the Board of Investment (“BOI”) provides tax exemptions to certain companies
that generate profit from promoting investment activity in Thailand. These companies can
be classified as BOI promoted companies and are referred to as operating “under BOI
privilege.” When a company under BOI privilege distributes dividends, the dividends derived
from business profit generated by BOI related business can be exempted from withholding
tax. However, Non-Voting Depositary Receipt (NVDR) holders are not entitled to thewithholding tax exemption.
MSCI does not take into account such tax exemption in calculating net dividends. That is,
MSCI does not differentiate dividends derived from business profit under BOI privilege andnon-BOI privilege. MSCI will therefore reinvest the full cash dividend amount with thedefault withholding tax rate in the MSCI DTR Indexes.
United Kingdom Cash Dividends
Real Estate Investment Trusts (REITs) incorporated in the UK are required to distribute atleast 90% of the profits derived from their property rental business to their shareholders.
This component of the overall dividend distribution is called a Property Income Distribution(PID) and is subject to a 20% withholding tax rate. Therefore, MSCI applies a withholding tax
rate of 20% to the PID component of dividends to derive the net PID amount to be
reinvested in the MSCI Net DTR Indexes.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

2.3.8

DEFINITIONSAnnouncement date - the date on which the company announces its next dividend
payment.



Reception date - the date on which the information about the dividend is received by
MSCI from its data sources.



Record date - the date on which an individual must own shares (be the holder of record)in order to receive a declared dividend or capital gains distribution.



Ex-date - the first day on which, if an investor buys the security, the security no longer
carries the right to the declared dividend.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

APPENDICES© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

APPENDIX I: SUNDAY INDEX CALCULATION
Calculation Methodology
A selected list of MSCI Indexes is calculated on Sunday to reflect the performance of themarkets open on this day7.
In order to preserve compatibility with the other MSCI International Indexes, which arecalculated from Monday to Friday, MSCI uses the concept of a Monday pre-opening(intermediate) calculation for the Sunday calculation. The Sunday index performances
capture the price changes and reflect corporate events effective on this day.
In case of corporate events occurring on Sundays and where a Price Adjustment Factor (PAF)
is needed, the PAF is applied to the market price of the security on Sunday and Monday. If
the security does not trade on Monday, the Sunday closing market price is carried forward
to Monday, including the PAF.
Changes in the security’s number of shares, FIFs and/or DIFs due to corporate eventsoccurring on Sunday are implemented as of the close of Monday, regardless of whether the
corporate event requires the application of a PAF on Sunday or not.
The index constituent list is the same as the one to be used for the Monday calculation.
WM/Reuters spot FX rates as of the previous Friday is carried forward to the Sunday in orderto perform the index calculation in USD.
No dividends are reinvested on Sundays. Consequently, the Daily Total Return (DTR) index
performances for Sunday will be equal to the ones of the price index.

The chain-linking for these indexes can be summarized as follows:

Sunday’s daily index performance is computed by comparing Sunday’s adjusted prices
and the previous Friday’s unadjusted prices

Monday’s daily index performance is computed, as currently, by comparing Monday’s
adjusted prices and the previous Friday’s unadjusted prices

7

Effective July 13, 2013, MSCI has discontinued the calculations and distribution of the Saturday files.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Initial Weights
FridayThursdaySaturday

SundayConstituentsMondayFriday calculation

Sunday calculation

Monday calculation

Index Calculation Formulas

∑

(
∑

)
(

)

∑
∑

(

)
(

)

Where:
is the inclusion factor of the security as of the following
Monday. The inclusion factor can be one or the combination of the following factors:
Foreign Inclusion Factor, Domestic Inclusion Factor, Growth Inclusion Factor, Value
Inclusion Factor, Index Inclusion Factor (*).

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Where:
is the number of shares of security s as of the endof the previous Friday.



is the price per share of the security s as of Sunday.



is the price per share of security s as of the previous Friday.



is the Price Adjustment Factor of the security s as of Sunday.



is the FX rate of the price currency of security s vs USD as of Sunday. It isthe value of 1 USD in foreign currency.



is the FX rate of the price currency of security s vs USD as of the previous
Friday. It is the value of 1 USD in foreign currency.



is the Internal Currency Index of price currency as of Monday. The ICI isdifferent than 1 when a country changes the internal value of its currency (e.g. from
Turkish Lira to New Turkish Lira – ICI = 1,000,000).



is the Internal Currency Index of price currency as of previous Friday.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

APPENDIX II: ANNUALIZED TRADED VALUE RATIO (ATVR) AND
ANNUAL TRADED VALUE
Calculation Methodology
The Annualized Traded Value Ratio (ATVR) is used to measure liquidity. MSCI uses ATVR as
an investability criterion to determine the inclusion of securities into the MSCI Indexes.
MSCI distributes ATVR fields on a monthly basis. Below the fields that are distributed aredefined. Note that the data used by MSCI during the index reviews may differ from the data
distributed.
ATVR Calculation Formulas
1. Monthly Median Traded Value
Taking the median screens out extreme daily trading volumes:

Where:


[

]




is the number of days in the month where thesecurity has been traded

represents the number of securities traded during the
day t




is the price per share of the security s at time t.
is the FX rate of the price currency of security s vs. USD at time t. It is the valueof 1 USD in foreign currency.

2. Monthly Traded Value Ratio (MTVR)
Dividing the monthly median traded value of a security by its free float-adjusted security
market capitalization at the end of the month gives the monthly median traded value ratio© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Where:
is the security market
capitalization at the end of the month,, adjusted with FIF

is the security market
capitalization at the end of the month,, adjusted with DIF

3. Annualized Traded Value Ratio (ATVR)∑∑The ATVR is not calculated when less than 12 months of monthly traded value ratios areavailable.
4. Annual Traded Value
The annual traded value is the sum of the monthly median traded values.
∑

The Annual Traded Value is not calculated when less than 12 months of monthly median
traded values are available.

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5. Aggregated information
In the calculation of the aggregated information, the trading volumes in depository receipts
associated with that security, such as ADRs or GDRs, are also considered. It is obtained bysumming up the ATVR of each listing.
Aggregated FIF/DIF adjusted ATVR is the sum of FIF/DIF adjusted ATVR of K securities thatare linked by the same issuer, share class and share type:∑∑

Aggregated ATVR is calculated even if less than 12 months of monthly median traded values
are available for one, several or all listings. When less than 12 months are available for agiven listing, MSCI will use the ATVR based on the monthly median traded values for the last
6 months, 3 months or 1 month for that listing (depending on data availability).
The Aggregated Annual Traded Value includes trading volumes in depositary receipts orother alternate listings associated with that security. It is obtained by summing up theAnnual Traded Values of each listing:∑© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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APPENDIX III: EXCHANGE RATES
Closing Spot Rates
Until December 30, 1993, MSCI used the exchange rates taken from the Reuters multi
contributor pages at 4.00PM CET.
Since December 31st, 1993, MSCI has been using the WM/Reuters Closing Spot Rates, taken
at 4PM London time, for all the countries for which it provides indexes, except for the Latin
American countries. At the time, MSCI established a special foreign exchange policy for Latin
American countries in view of the risks of important movement of currencies in some ofthese markets between the 4PM London closing and the close of the respective Latin
American markets.
Starting July 26, 2000, MSCI began to use the WM/Reuters Closing Spot Rates, taken at 4PM
London time, for all the countries it provides indexes including Latin American countries.
In case WM/Reuters does not provide rates for specific markets on given days (for example
Christmas Day and New Year Day), the previous business day’s rates are used.
MSCI independently monitors the exchange rates on all its indexes. MSCI may under
exceptional circumstances elect to use alternative sources of exchange rates if the
WM/Reuters rates are not available, or if MSCI determines that the WM/Reuters rates are
not reflective of market circumstances for a given currency on a particular day. In suchcircumstances, an announcement would be sent to clients with the related information. If
appropriate, MSCI may conduct a consultation with the investment community to gather
feedback on the most relevant exchange rate.
Forward Rates
MSCI uses the spot and 1-month premium/discount as provided by WM/Reuters to computethe 1-month Forward exchange rates. These values are taken at 4PM London time

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APPENDIX IV: SINGAPORE & MALAYSIA – A HISTORY OF INCLUSION
IN THE EMERGING AND DEVELOPED MARKETS INDEXES
Stock Markets
Stock trading has a long history in Singapore dating back to the 1930’s. In 1960 the Malayan
Stock Exchange started trading shares publicly. There were trading floors in both Singapore
and Kuala Lumpur linked as a single market. When Singapore split from Malaysia the stock
exchange continued to operate as one under the name Stock Exchange of Malaysia andSingapore (SEMS). In 1973 the accord that allowed for the convertibility at par between the
Singapore Dollar and Malaysian Ringgit was terminated. This led to the separation of SEMS
into the Kuala Lumpur Stock Exchange (KLSE) and the Stock Exchange of Singapore (SES).
Malaysian companies continued to trade heavily in Singapore.
MSCI Indexes
On December 1st 1972, the MSCI Singapore/Malaysia Index was added to the World Index.
The index was developed in cooperation with the Overseas-Chinese Banking Corporation,
which published the same index under the name O.C.B.C. Index. As is the case with other
MSCI Indexes the purpose was to track those securities representative of Singapore.
However as approximately half the market capitalization and liquidity of the SES was due to
Malaysian shares the index was designed to incorporate both Singaporean companies aswell as those Malaysian shares that traded in Singapore. This aspect was different fromother MSCI Indexes, as the norm is to only include domestically listed shares. In light of thelong integrated history of the Malay Peninsula and Singapore, and the continued dual listingof shares, it was deemed to be more representative to include these Malaysian companies
as representative of the opportunity set of the SES.
MSCI launched its emerging market series on January 1, 1988. Among other country indexes
was an index of Malaysia with 59 securities. As MSCI was now covering emerging markets
the MSCI Mexico Index was pulled out of MSCI World. The World Index was to beconsidered a developed market index.
In 1989 the Malaysian government announced that Malaysian companies would be asked todelist their shares from the SES. Previously the government had prohibited newly listed
shares of Malaysian companies from listing on the SES. In November 1989, reacting to the
Malaysian government announcement, MSCI initially announced its intention to remove
Malaysian securities from the Singapore/Malaysia index. The following month MSCI
announced that the terms and timing of the Malaysian delisting were too ambiguous. As a

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

result MSCI would take a wait and see approach prior to removing any Malaysian securities
from the Singapore/Malaysia index. As a result the Malaysian shares in the MSCISingapore/Malaysia Index were effectively frozen or grandfathered. Over time, some ofthese shares were no longer listed on Singapore but continued to be included in the index
using the Ringgit price at which they were traded in Kuala Lumpur.
In January 1992 MSCI announced a change. The Singapore/Malaysia index was now
composed of a representative sampling of Singaporean companies coupled with
grandfathered Malaysian securities that used to trade in Singapore but were no longer
trading there as a result of the delisting requirement. Malaysia was clearly an emerging
market, for example its GDP per capita was $2,340 considerably below that of Spain($10,920), the lowest country that was currently in the MSCI World Index. Nonethelessmany developed market investors had historically purchased Malaysian companies as aresult of some Malaysian companies being included in the MSCI World and EAFE Indexes.
Deleting all Malaysian companies from the developed market indexes could have been very
disruptive to the markets. As a result of this dilemma MSCI decided to add Malaysia as acountry to the World and related developed market indexes while continuing to include
Malaysia in the emerging market series. One could not have a credible emerging market
series without the continued inclusion of Malaysia in that series.
Thus Malaysia was to be represented in both the developed and emerging market series. At
the time MSCI acknowledged that the existence of Malaysia in both the developed andemerging market series was less than ideal. As of April 30th 1993 Malaysia was fully added
to the developed market series, resulting in the addition of approximately 40 securities. Thiswas because the MSCI Malaysia Index was designed to represent the profile of the entire
Malaysian market whereas the current Malaysian stocks in the World and EAFE Indexes
were selected to reflect the composition of those Malaysian stocks trading in Singapore.
ACWI clients would not have to worry about double counting as Malaysia was represented
at its appropriate market cap weight. The index of Singapore represented the continuationof the Singapore/Malaysia index and therefore retains its base date of December 31, 1969.
Developed and emerging market indexes excluding Malaysia were calculated for thoseclients who preferred a different classification.
The Asian Crisis
The “Asian Crisis”, starting in 1997 with the devaluation of the Thai Baht eventually spreadto Malaysia. On September 1st 1998 Malaysia imposed a series of restrictions on theconvertibility of the Ringgit. These controls effectively prohibited the repatriation of funds.
On Sept 4th, 1998 MSCI announced that effective Sept 30th Malaysia would be removed
from the EAFE and World Indexes and that its status in EMF was under review. In the MSCI

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announcement of the change it was stated “…the limitations in repatriating investment
proceeds would seriously challenge the objective and integrity of the MSCI Developed
Markets Indexes, were the Malaysian securities to remain in these indexes.” These
restrictions imposed by the government of Malaysia thus ended the legacy issue of
Malaysian securities appearing in both the developed and emerging market series.
On Sept 28th, 1998 MSCI announced that Malaysia would be removed from the MSCI EMF
and ACWI Free series as of the close of November 30th, 1998. As part of the capital controls
imposed, foreign investors became obligated to hold Malaysian securities for a period of
one-year commencing Sept 1st, 1998, before any possible capital repatriation. The
authorities also imposed a fixed exchange rate of 3.8 Ringgit to the US dollar. The measurestaken by the government along with the lack of transparency meant that Malaysia’s
inclusion in the Free series of indexes was no longer justified. A discount of 30% was applied
to the valuation of the MSCI Malaysia Index in US dollars, effective Sept 30th, 1998. The
discount was applied because market forces no longer determined the official exchangerate.
On February 5th, 1999 MSCI announced that effective February 26th, 1999 the discountwould be reduced to 15%. This followed the Malaysian Government announcement on theprevious day that it was alleviating the restrictions on the repatriation of investments.
As a result of the removal of the restrictions on the repatriation of capital, MSCI announced
on August 12, 1999, the removal of the 15% discount effective August 30, 1999. On
November 23, 1999, MSCI announced that Malaysia would be re-included fully at 100% in
the EMF and AC Free indexes as of May 31, 2000.
MSCI Malaysia Indexes will be removed from the MSCI Emerging Markets Free (EMF) series
and the MSCI All Country (AC) Free Indexes effective as of the close of 30th November, 1998
Of course Malaysia was not readmitted to the developed market series, as its inclusion there
was a result of the previously explained anomaly.
Quick Facts
Malaysia was part of the Developed Market indexes:From December 1, 1972 to May 2, 1993, MSCI calculated a combined index, theSingapore/Malaysia index - due to the history of Malaysian securities trading in
Singapore.

From May 3, 1993 up to the close of Sep 30, 1998, Malaysia was part of DM as anindividual country (separated from Singapore).

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MSCI.COM | PAGE 53 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Malaysia has been part of the Emerging Market indexes from 1987 to present:With a discount of 30% from Sep 30, 1998 to Feb 25, 1999

With a discount of 15% from Feb 26, 1999 to Aug 29, 1999

With no discount since Aug 30, 1999

Malaysia has been part of the EMF index:From 1987 to Nov 30, 1998

And since June 1, 2000

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MSCI.COM | PAGE 54 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

APPENDIX V: SINGAPORE AND SINGAPORE FREE
What is the difference between the MSCI Singapore Index and the MSCI Singapore Free
Index; the MSCI EAFE Index and the MSCI EAFE Free Index; the MSCI World Index and the
MSCI World Free Index?
In the 1990s, Singapore enacted a system to prevent companies in strategic industries(mainly banks, airlines and the media) from being controlled by foreigners. Certain shares
had limits on the percent that could be purchased by foreigners. Once the limit was reached,these shares traded at a premium price. The MSCI Singapore Free Index used the prices atwhich foreigners could trade.
MSCI also started calculating the regional indexes, MSCI World Free Index, MSCI EAFE Free
Index and MSCI Pacific Free Index to include the MSCI Singapore Free Index as well as toreflect investment restrictions in some of the Nordic countries and Switzerland. The MSCISingapore Index (non-free version) reflected the investment opportunities applicable todomestic investors.
In May of 1999, the foreign ownership restrictions in Singapore were lifted and as of thatdate, the MSCI Singapore Index and MSCI Singapore Free Index and the corresponding
regional developed market Free and non-Free indexes have had the same constituent
market caps and performance. Only the absolute index levels continue to differ. MSCI willcontinue both the Free and Non-Free versions of MSCI Singapore Index, MSCI EAFE Index
and MSCI World Index to reflect the differing history.

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MSCI.COM | PAGE 55 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

APPENDIX VI: WITHHOLDING TAX RATESCountry Of Incorporation

Withholding Tax
Rates (%)(1)Country Of Incorporation

Withholding Tax
Rates (%)(1)

Code

Name

Foreign

Domestic

Code

Name

Foreign

AE

United Arab Emirates

0

0

KR

Korea

22

AN

Netherlands Antilles

0

KW

Kuwait15

AR

Argentina

10

KY

Cayman Islands

0AT

Austria25

KZ

Kazakhstan

15

AU

Australia

(2)

30

LB

Lebanon10

BA

Bosnia & Herzegovina

5LI

Liechtenstein

4

BD

Bangladesh

20

LK

Sri Lanka

10BE

Belgium

25

LR

Liberia15

BF

Burkina Faso

12.5

LT

Lithuania

15

BG

Bulgaria

5

LU

Luxembourg

15

BH

Bahrain

0

MA

Morocco

15

BM

Bermuda0MH

Marshall Islands

0

(3)

0

BR

Brazil0

MK

Macedonia

10

BS

Bahamas0

MU

Mauritius

0BW

Botswana

7.5

MT

Malta

0

CA

Canada25

MX

Mexico(9)(5)

Switzerland

35

MY

Malaysia

CI

Ivory Coast

10

NG

Nigeria

10

CL

Chile

35

NL

Netherlands

15

NO

Norway25
15

0 or 10

10

0

CN

China

CO

Colombia

0

NZ

New Zealand

CW

Curacao

0

OM

Oman

0

CY

Cyprus0PA

Panama10

CZ

Czech Republic

35

PE

Peru

4.1

DE

Germany

26.375PH

Philippines

30

DK

Denmark

27

PK

Pakistan

12.5

EE

Estonia0

PL

Poland

19

EG

Egypt

10

PR

Puerto Rico

10

ES

Spain

19.5

PS

Palestine

0FI

Finland

30

PT

Portugal25© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

0

10

CH

(4)

Domestic0

MSCI.COM | PAGE 56 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Country Of Incorporation

Withholding Tax
Rates (%)(1)Country Of Incorporation

Withholding Tax
Rates (%)(1)

Code

Name

Foreign

Code

Name

Foreign

Domestic

FO

Faroe Islands

35

QA

Qatar

0

0

FR

France30

RO

Romania

16

GB

United Kingdom

0RS

Serbia25

GG

Guernsey0

RU

Russia

15

GH

Ghana

8

SA

Saudi Arabia

5

GI

Gibraltar

0SE

Sweden30

GRGreece10

SGSingaporeHK

Hong Kong

0

SI

Slovenia

15

HR

Croatia

12

SN

Senegal10

HU

Hungary

0

TG

Togo

13

ID

Indonesia

20

TH

Thailand10

IE

Ireland20

TN

Tunisia5IL

Israel25

TR

Turkey15

IMIsle Of Man

0

TT

Trinidad And Tobago

IN

India

0

TW

Taiwan

20

IT

Italy

26

UA

Ukraine15

JE

Jersey

0

US

USA

30

JM

Jamaica

33.333

VG

British Virgin Islands

0JO

Jordan0

VN

Vietnam

0

JP

Japan

15.315ZA

South Africa

15

KE

Kenya

10

ZW

Zimbabwe10(6,10)

Domestic

(7)

0

0

(8)

10

30

Notes:
1. Used in the calculation of the MSCI Net Daily Total Return (DTR) Indexes.
Withholding tax rates used are the maximum rates of the company’s country ofincorporation applicable to institutional investors who do not benefit from double
taxation treaties. Foreign rates are used in the MSCI Net DTR International Indexes
and Domestic rates are used in the MSCI Net DTR Domestic Indexes.
2. For Australian dividends, franking percentage and conduit foreign income are taken
into consideration on calculation of the MSCI Net DTR Indexes. The actual
withholding tax rate for an Australian dividend ranges from 0% to 30%. For details,
please refer to the section 2.3.7.2.1.

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MSCI.COM | PAGE 57 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

3. Interest on capital is subject to a 15% withholding tax.
4. For the MSCI China Index, the withholding tax rates are exceptionally based on
Chinese securities’ share types, regardless of the company’s country of incorporation.
B-share and H-share are subject to a 10% withholding tax. P-Chip and Red Chip are
subject to a 0% withholding tax, unless a specific withholding tax of 10% isannounced by the companies.
5. Dividends on Real Estate Investment Trusts (REITS) are subject to a 10% withholdingtax.
6. Cash dividends paid by companies incorporated in the United Kingdom include a
10% tax credit. MSCI does not take into consideration the tax credit for both thegross and net dividend amounts. As there is no withholding tax in the United
Kingdom, the gross and net amounts of the cash dividends to be reinvested in the
MSCI Net Daily Total Return (DTR) indexes are equal.
7. Dividends on Real Estate Investment Trusts (REITS) are subject to a 10% withholdingtax.
8. Dividends on Real Estate Investment Trusts (REITs) are subject to a 15% withholdingtax.
9. Dividends on Real Estate Investment Trusts (REITs) are subject to a 30% withholdingtax.
10. PID components of dividends on Real Estate Investment Trusts (REITs) are subject toa 20% withholding tax© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 58 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

APPENDIX VII: CLOSING PRICES POLICY
Prices used in MSCI End of Day Index Calculations
Unless otherwise indicated, the prices used to calculate the MSCI Indexes are the official exchange closing prices or those figures accepted as such.
Please note that MSCI reserves the right to use an alternative pricing source on any given day
The sources listed below are the "standard" MSCI pricing sources.

Reuters
Code

Bloomberg
CodeMarketIdentifier
Code
(MIC)

.BA

AF

Price used

Description (For more detailed information, please contact the relevant exchange)

Closing Prices
availability(local time)

XBUE

Last traded price

Last round lot trade with a 72 hour settlement basis. Round lots in Argentina-Bolsa deComercio de Buenos Aires vary for each stock and are established on a daily basis.

5:00PMUW

XNGS

See USA(NASDAQ Global
Select Market)

See USA (NASDAQ Global Select Market)

see USA(NASDAQ
Global SelectMarket)

.N

UN

XNYS

See USA (NYSE)

See USA (NYSE)

see USA (NYSE)

Australian Stock
Exchange (ASX)

.AX

AU

XASX

Official close

The official price is determined during the Closing Single Price Auction (“CSPA”) which takes
place at the end of the normal trading session. If a trade does not occur during CSPA, thefinal automatically matched trade during the normal trading session will be used.

4:12PM

Austria

Vienna Stock
Exchange

.VI

AV

WBAH

Auction close

The chosen price is the price for which the highest number of orders can be executed. The
auction begins at 5:30PM.

5:35PM

Bahrain

Bahrain Stock
Exchange

.BH

BI

XBAH

Last traded price

Last traded price

12:30PMCountry

Exchange

Argentina

Bolsa de Comerciode Buenos Aires

Argentina (USlistedDepository
Receipts)

NASDAQ Global
Select Market.OQ

Argentina (USlistedDepository
Receipts)

NYSE

Australia© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 59 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Country

Exchange

Reuters
Code

Bloomberg
CodeMarketIdentifier
Code
(MIC)

Closing Prices
availability(local time)

Price used

Description (For more detailed information, please contact the relevant exchange)

3:30PM

Bangladesh

Dhaka Stock
Exchange

.DH

BD

XDHA

Official close

The closing price for a security shall be determined as per the weighted average price of all
the trades in the last 30 (thirty) minutes of trading. If there is no trade during the above
specified time, the weighted average price of maximum 20 (twenty) number of trades
preceding the above 30 (thirty) minutes shall be taken for determination of closing price. If
there has been no trade in the security during the continuous trading session, the opening
price of the security shall be treated as the closing price.

Belgium

Brussels Stock
Exchange

.BR

BB

XBRU

Auction close

The closing price is an auction price calculated between 5:30PM and 5:35PM. It is still
possible to trade at the auction price between 5:30PM and 5:40PM.

5:35PM

Bosnia andHerzegovina

Sarajevo Stock
Exchange

.SJ

BT

XSSE

Last traded price

Last traded price

1:30PM

Bosnia andHerzegovina

Banja Luka Stock
Exchange

.BJ

BK

XBLB

Last traded price

Last traded price

1:00PM

Botswana

Botswana Stock
Exchange

.BT

BG

XBOT

Last traded price

Last traded price

3:00PM

BrazilBovespa (SaoPaulo SE)

.SA

BS

XBSP

Auction close

For all listed companies on the electronic trading system, there is a ‘closing call’ between
5.55PM and 6.00PM (4:55PM and 5:00PM*).

6:00PM(5:00PM*)

Bulgaria

Bulgarian Stock
Exchange (Sofia)

.BB

BU

XBUL

Last Traded Price

Last Traded Price

2:00PM

CanadaToronto Stock
Exchange

.TO

CT

XTSE

Market on Close/ Last traded
priceMarket on Close (MOC) auction for MOC eligible stocks. Last traded price for stocks not
eligible for the MOC auction.

4:10PM /4:00PM

Chile

Bolsa de Comerciode Santiago

.SN

CC

XSGO

VWAP

The Official Close is calculated using a volume weighted average price of the trades in the lastten minutes of the trading day. For a trade that occurs within the last ten minutes of trading
to be included in the VWAP calculation, the volume of each trade must meet a set volume
determined by the exchange at the open of each month

5:00PM(4:00PM*)

China

Hong Kong Stock
Exchange

.HK

HK

XHKG

See Hong Kong

See Hong Kong

China

Shanghai Stock
Exchange

.SS

CG

XSHG

VWAP

Volume Weighted Average Price of all trades conducted in the last minute of trading prior tothe close (including the last trade). If there is no concluded transaction on that day, theprevious closing price is used as the day’s closing price.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 60 OF 120

See Hong Kong

3:05PM

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Country

Exchange

Reuters
Code

Bloomberg
CodeMarketIdentifier
Code
(MIC)

Price used

Description (For more detailed information, please contact the relevant exchange)

Closing Prices
availability(local time)

China

Shenzhen Stock
Exchange

.SZ

CS

XSHE

Auction close

The closing price of a security is generated from a call auction. In case no closing price isgenerated from the closing call auction, the trading volume-weighted average price of all thetrades of the security one minute before the last trade (including the last trade) on that day
is taken as the closing price. In the absence of trades on a trading day, the previous day’s
closing price is taken as the closing price of that day.

China

NYSE

.N

UN

XNYS

See USA (NYSE)

See USA (NYSE)

Bolsa de Valores
de Colombia

.CN

CX

XBOG

Last traded price

The closing price is the price of the last transaction which meets a number of shares
threshold between 9:30AM and 3:00PM The exchange defines the threshold based on priceranges.

NYSE

.N

UN

XNYS

See USA (NYSE)

See USA (NYSE)

Croatia

Zagreb Stock
Exchange

.ZA

ZA

XZAG

VWAP

The official closing price is the Volume Weighted Average Price of trades throughout theentire trading day.

4:00PM

Croatia

Zagreb – Vrazdin
Segment

.ZA

VA

XZAG

VWAP

The official closing price is the Volume Weighted Average Price of trades throughout theentire trading day.

4:00PM

Czech
Republic

Prague Stock
Exchange (XPRA)

.PR

CK

XPRA

Official Close

The official closing price is taken from the closing auction held between 4:20pm and 4:25pm
local time.

5:30 PM

Denmark

Copenhagen Stock
Exchange

Auction close

The closing call auction will begin when the trading session ends at 4:50PM. It will run until
5:00PM. The closing price will be generated in the closing call auction. If no trades are
executed during the closing call auction, the closing price will correspond to the lasttransaction.

5:00PM

2:30PM

4:00PM

Colombia

Colombia (USlistedDepository
Receipts)

.CO

DC

XCSE

Egypt

Egyptian Exchange

.CA

EC

XCAI

VWAP

The closing price of a security traded on the Egyptian Exchange is the Volume Weighted
Average Price which is equal to the total value traded of the security divided by the total
volume traded of the same security, only if the total executed volume exceeds the 0.5 % of
the average volume (calculated based on three month average) and the total value exceeds
10,000 EGP or equivalent in other currencies, otherwise the previous day’s closing price isconsidered to be the official closing price.

Estonia

Tallinn Stock
Exchange

.TL

ET

XTAL

Auction Close

In the course of the closing auction, transaction orders are matched in the order bookaccording to the equilibrium price. The equilibrium price is achieved only if the prices of buy© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 61 OF 120

3:05PM

See USA (NYSE)

3:00PM

see USA (NYSE)

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Country

Exchange

Reuters
Code

Bloomberg
CodeMarketIdentifier
Code
(MIC)

Price used

Description (For more detailed information, please contact the relevant exchange)

Closing Prices
availability(local time)and sell orders entered in the order book are crossing or equal. An auction is not held unlessthere are transaction orders with crossing prices.

FinlandHelsinki Stock
Exchange

.HE

FH

XHEL

Auction close

As of Sep 27 2004, the official closing price is the result of the closing call which occurs during
the last 10 minutes of trading. If no trades are matched in the closing call then the last tradeprior to the auction will be defined as the closing price.

6:30PM

FranceParis Stock
Exchange

.PA

FP

XPAR

Auction close

The closing price is an auction price calculated between 5:30PM and 5:35PM. It is still
possible to trade at the auction price between 5:30PM and 5:40PM.

5:35PM

Germany(XETRA)XETRA Exchange

.DE

GY

XETR

Auction close

The Auction price is defined during the auction that closes the trading session. The chosen
price is the price for which the highest number of orders can be executed.

5:35PM

Ghana

Ghana Stock
Exchange

.GH

GN

XGHA

VWAP

The official closing price is the Volume Weighted Average Price of trades throughout theentire trading day.

3:00PM

GreeceAthens Stock
Exchange

Auction close

The closing price is determined through a call auction at the conclusion of the continuous
trading session, whereby the price at which the greatest trading volume is attained is theauction close price. If there is no price set by the call auction, the closing price will be the
VWAP of the last 30% of trades.

5:20PM

4:15PM

.AT

GA

XATH

Hong Kong

Hong Kong Stock
Exchange

.HK

HK

XHKG

Auction Close /Median Price

If there is closing auction session for the security, final Indicative Equilibrium Price (IEP)
would be taken as auction close price. Otherwise, median price would be applied. The
median price is determined by taking the median of five nominal prices in the last minute of
the trading hours to avoid the closing price being biased by one single trade. HKSE takes up
to 5 snapshots of the nominal prices at interval of every 15 seconds starting from 3:59PM,
local time.

Hungary

Budapest Stock
Exchange

.BU

HB

XBUD

Last traded price

Last traded price

5:10PM

3:30PM

3:30PM

India

The Bombay Stock
Exchange

.BO

IB

XBOM

WAP

The Weighted Average Price is defined as the volume weighted average of all orders
executed within the last 15 minutes of the continuous trading session. If there are no trades
during the last 15 minutes, then the last traded price in continuous trading is taken as theofficial close. Bombay Stock Exchange prices are only used for securities not traded on the
NSE.

India

National Stock
Exchange of India

.NS

IS

XNSE

VWAP

The closing price of a security is the volume weighted average price of the last half hour
(3:00PM-3:30PM). If there are no trades during the last 30 minutes, then the last traded priceis taken as the official close. However, in cases where such prices are not available due to the© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 62 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Country

Exchange

Reuters
Code

Bloomberg
CodeMarketIdentifier
Code
(MIC)

Price used

Description (For more detailed information, please contact the relevant exchange)

Closing Prices
availability(local time)delisting from the National Stock Exchange (NSE), official closing prices from the Bombay
Stock Exchange will be used.

Indonesia

IrelandIsraelJakarta Stock
Exchange

Irish Stock
Exchange

Tel Aviv Stock
Exchange

.JK

.I

.TA

IJ

ID

IT

XIDX

XDUB

XTAE

Auction close

The pre-closing session auction results are between 04:00 and 04:05 p.m. JKT. If there is an
auto-matched trade for a security during the closing auction, The auction price will be theofficial closing price. If there are trades during the opening auction or during the continuous
trading period but none during the closing auction, the last traded price will be the official
closing price. The previous day’s official closing price will be the official closing price for days
where there are no trades.

4:15PM

Auction close

The session ends with a 2 minute auction (between 4:28PM and 4:30PM). If a security is
traded during the closing auction, the auction price will be the official closing price. If there
are trades during the opening auction or during the continuous trading period, but no trades
during the closing auction, the last traded price will be the official closing price. If there areno trades on a particular day, the previous day’s official closing price will be the official
closing price.

5.05PM

Auction Close

The closing price will be the one set during the closing call alone, where the volume of theshare at the closing call auction will be at least: NIS 400,000 in the TA-25 NIS 200,000 in the
TA-75 NIS 100,000 in the “Mid Cap” index If the closing volume is less than mentioned above,
the price will be set at the weighted average of the latest transaction prices, including those
executed in the closing call.

4:30PM

5:40PM

Italy

Italian Stock
Exchange

.MI

IM

MTAA

Auction close

The closing auction, including a pre-auction phase that can end at any time within the lastminutes of that actual pre-auction phase. Closing auction, comprising the closing phases andvalidation, will end at 5.40PM local time. Where no auction price is available, the reference
price, defined by the exchange as the Volume Weighted average of the last 10% of the day’s
trading volume, will be used.

Jamaica

Jamaica Stock
Exchange

.JS

JA

XJAM

Average price

The Average Price calculation is the volumes of a stock purchased at different prices, divided
by the cumulative volumes of the stock unit that traded throughout the day.

1:30PM

Auction close

The closing price is determined during a price auction which takes place at the end of thenormal trading day. During this auction, all orders entered in the individual order book areaggregated before the execution, and treated as simultaneous orders. In accordance with theprinciple of price priority, each buy order is compared with sell orders until its volume andprice are matched. By this method, a single price is determined and this price makes up theclosing price. In the event of a closing auction not happening for a particular day, the last
price (Itayose or special quote method) will be used instead.

3:30PM

Japan

Nagoya Stock
Exchange

.NG

JN

XNGO

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MSCI.COM | PAGE 63 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Country

Japan

Japan

Exchange

Osaka Securitites
Exchange

Tokyo Stock
Exchange

Reuters
Code

.OS

.T

Bloomberg
Code

JO

JT

MarketIdentifier
Code
(MIC)

XOSE

XTKS

Closing Prices
availability(local time)

Price used

Description (For more detailed information, please contact the relevant exchange)

Auction close

The closing price is determined during a price auction which takes place at the end of thenormal trading day. During this auction, all orders entered in the individual order book areaggregated before the execution, and treated as simultaneous orders. In accordance with theprinciple of price priority, each buy order is compared with sell orders until its volume andprice are matched. By this method, a single price is determined and this price makes up theclosing price. In the event of a closing auction not happening for a particular day, the last
price (Itayose or special quote method) will be used instead.

3:10PM

Auction close

The closing price is determined during a price auction which takes place at the end of thenormal trading day. During this auction, all orders entered in the individual order book areaggregated before the execution, and treated as simultaneous orders. In accordance with theprinciple of price priority, each buy order is compared with sell orders until its volume andprice are matched. By this method, a single price is determined and this price makes up theclosing price. In the event of a closing auction not happening for a particular day, the last
price (Itayose or special quote method) will be used instead.

3:00PM

3:10PM

Japan

JASDAQ

.Q

JQ

XJAS

Auction close

The closing price is determined during a price auction which takes place at the end of thenormal trading day. During this auction, all orders entered in the individual order book areaggregated before the execution, and treated as simultaneous orders. In accordance with theprinciple of price priority, each buy order is compared with sell orders until its volume andprice are matched. By this method, a single price is determined and this price makes up theclosing price. In the event of a closing auction not happening for a particular day, the last
price (Itayose or special quote method) will be used instead.

JordanAmman Stock
Exchange

.AM

JR

XAMM

Last traded price

Last traded price

12:40PM

Kazakhstan

Kazakhstan Stock
Exchange

.KZ

KZ

XKAZ

Last traded price

Last traded price

6:00PM

Kazakhstan(UK listed
Depository
Receipts)

London Stock
Exchange

.L

LI

XLON

see UK (SETS)

see UK (SETS)

see UK (SETS)

Kenya

Nairobi Stock
Exchange

VWAP

The closing price of a security shall be the Volume Weighted Average Price (VWAP) or
transactions executed during the last hour of trading of the specific security. If the security
does not trade within the last hour the closing price will be the average price calculated forthe session.

.NR

KN

XNAI

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MSCI.COM | PAGE 64 OF 120

3:00PM

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Country

Exchange

Reuters
Code

Bloomberg
CodeMarketIdentifier
Code
(MIC)

Price used

Description (For more detailed information, please contact the relevant exchange)

Closing Prices
availability(local time)

Korea

KSE

.KS

KP

XKRX

Auction close

The closing price is the price for which the highest number of orders can be executed during
the auction. The auction starts 10 minutes before the official close at 3:00PM.

3:00PM

Korea

KOSDAQ

.KQ

KQ

XKOS

Auction close

The closing price is the price for which the highest number of orders can be executed during
the auction. The auction starts 10 minutes before the official close at 3:00PM.

3:00PM

KuwaitKuwait Stock
Exchange

.KW

KK

XKUW

Auction close

The closing price will be determined by an auction held at the close of trading with a preauction period (without matching) of two minutes, where orders cannot be cancelled or
modified

12:30PM

LebanonBeirut Stock
Exchange

.BY

LB

XBEY

Last traded price

Last traded price

12:30PM

Lithuania

Vilnius Stock
Exchange

.VL

LH

XLIT

Closing Call
AuctionIn the course of the closing auction, transaction orders are matched in the order bookaccording to the equilibrium price. The equilibrium price is calculated to be the price where
in a particular Order Book the highest buy price is higher than or equal to the lowest sell
price.

4:00PM

Malaysia

The Bursa
Malaysia Berhad

.KL

MK

XKLS

Last traded price

Last traded price

5:00PM

Mauritius

The Stock
Exchange ofMauritius

.MZ

MP

XMAU

Last traded price

Last traded price

1:30PM

MexicoBolsa Mexicana deValores

.MX

MM

XMEX

Weighted
average price

Weighted Average Price of the last 20 minutes of trading

3:00PM

MoroccoBourse De
Casablanca

.CS

MC

XCAS

Last traded price

Last traded price

3:30PM

Netherlands

EuroNext
Amsterdam

.AS

NA

XAMS

Auction price

The closing price is an auction price calculated between 5:30PM and 5:35PM. It is still
possible to trade at the auction price between 5:30PM and 5:40PM.

5:35PM

New Zealand

New Zealand
Exchange Limited

.NZ

NZ

XNZE

Last traded price

Last traded price

5:00PM

Nigeria Stock
Exchange

.LG

NL

XNSA

Official Close

The official closing price is defined as the last trade with volume greater than 50,000 shares.
If there are no trades over 50,000 shares during the current trading day, the previous close iscarried over

2:30PM

Nigeria© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 65 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Country

NorwayExchange

Oslo Stock
Exchange

Reuters
Code.OL

Bloomberg
CodeNO

MarketIdentifier
Code
(MIC)

XOSL

Closing Prices
availability(local time)

Price used

Description (For more detailed information, please contact the relevant exchange)

Auction close

The official closing prices is determined during a closing auction which takes place at the endof the continuous trading between 16:20 and 16:30. When the closing auction for a particular
security cannot be completed, the last traded price before the start of the auction will be
used.

5:30PM

VWAP

The closing price is considered to be the volume weighted average price. The closing pricewill not change unless a minimum number of securities are traded. This minimum is 500
Shares for securities listed in the Regular & Parallel markets and 2000 for securities listed in
the Third market. In case traded securities do not exceed the specified threshold for theirmarket, the closing price will equal the previous close.

1:00PM

2:15PM (MonThu), 4:00PM
(Fri)

Oman

Oman Muscat
Exchange

Pakistan

Karachi Stock
Exchange

.KA

PK

XKAR

Official Close

The closing price is determined by the volume weighted average price of the last 30 minutes
trades of that security for the day. In case of no trading in a particular security during the last
30 minutes of the day, the closing price is the volume weighted average price for the last
traded 30 minutes of that security.

Peru

Bolsa De Valores
de Lima

.LM

PE

XLIM

Last traded price

Last round lot regular trade

NYSE

.N

UN

XNYS

see USA (NYSE)

see USA (NYSE)

Philippines

Philippine Stock
Exchange

.PS

PM

XPHS

Closing Price

The Closing Price is determined using an auction process during the Pre-Close period. If there
is no computed Closing Price for that trading day, the Closing Price taken is the price of thelast transaction during the trading day’s Continuous Period.

3:30PM

PolandWarsaw Stock
Exchange

.WA

PW

XWAR

Auction Close

The closing price is determined in an auction procedure in which the closing price will bebased on orders submitted during the closing phase. If no orders are placed during theclosing phase then the closing price will be that of the last transaction.

5:10PM

Portugal

EuroNext Lisbon

.LS

PL

XLIS

Auction close

The closing price is an auction price calculated between 5:30PM and 5:35PM. It is still
possible to trade at the auction price between 5:30PM and 5:40PM.

5:35PM

Qatar

Doha Securities
Market

.QA

QD

DSMD

Auction Close

The closing price is an auction price set during the closing auction period. If there is no priceset during the closing auction period, the closing price is the last traded price.

12:30PM

Romania

Bucharest Stock
Exchange

.BX

RO

XBSE

Last traded price

Last Traded Price

4:30PM

Peru (US listed
Depository
Receipts)

.OM

OM

XMUS

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 66 OF 120

4:00PM

see USA (NYSE)

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Bloomberg
CodeMarketIdentifier
Code
(MIC)

Country

Exchange

Reuters
Code

RussiaMoscow Interbank
Currency
Exchange (MICEX)

.MM

RX

Russia (USlistedDepository
Receipts)

New York Stock
Exchange.N

Russia (UKlistedDepository
Receipts)

London Stock
Exchange.L

Closing Prices
availability(local time)

Price used

Description (For more detailed information, please contact the relevant exchange)

MISX

Last traded price

Last traded price

6:45PMUN

XNYS

see USA (NYSE)

see USA (NYSE)

see USA (NYSE)

LI

XLON

see UK (SETS)

see UK (SETS)

see UK (SETS)

3:32PM

Saudi Arabia

Saudi SE
(Tadawul)

.SE

AB

XSAU

VWAP

The Official Close is calculated using a Volume Weighted Average Price. The VWAP takes theaverage price of trades that occurred in the last 15 minutes before the market closes, where
the total of all traded value of a company is divided by the total traded shares of thatcompany, resulting in the VWAP closing price. In the case where a security does not trade in
the last 15 minutes before the market closes, the Official Close will be the "last normal price",defined by the exchange as a trade greater than or equal to 15,000 Saudi Riyals. In the
instance that no normal price is available (no trade equal or above 15,000 Saudi Riyals), theprevious day's Official Close will be used.

SerbiaBelgrade SE

.BEL

SG

XBEL

VWAP

The closing price is considered to be the volume weighted average price.

2:00PM

Auction close

At 5:00PM, all unmatched orders are carried forward to Pre-Close Routine, which runs for 6
minutes and consists of a Pre-Close Period and a Non-Cancel Period. Similarly, orders can beentered, amended or cancelled during the Pre-Close Period (5:00PM – 5:05PM). During the
Non-Cancel Period (5:05PM – 5:06PM), orders are matched and executed at a Closing pricecomputed for the day, while unmatched orders will become void.

5:06PM

XLJU

Official CloseThe Official Closing Price is defined as the Auction Price formed during the Closing Auction. If
there are no trades executed for a given security during the Closing Auction, the Closing Pricewill be the last trade of the day. If there are no trades executed in a given security on a given
day, the closing price for the day will be the closing price of the previous trading day.

1:00PM

XJSE

Last traded price/ VWAP

The closing prices on securities traded on the South Africa Exchange will be calculated basedon the price at which trades occurred in a closing execution. In this closing execution, the last
traded price will be the official closing price, unless there is a higher bid price or a lower ask
offer, which will then be used as the closing price. In the event that there is no closing

5:05PM

Singapore

Singapore
Exchange
Securities Trading

Slovenia

Ljubljana Stock
Exchange

South Africa

Johannesburg
Stock Exchange

.SI

.LJ

.J

SP

SV

SJ

XSES

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 67 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Country

Exchange

Reuters
Code

Bloomberg
CodeMarketIdentifier
Code
(MIC)

Price used

Description (For more detailed information, please contact the relevant exchange)

Closing Prices
availability(local time)

execution, then a Volume Weighted Average Price (VWAP) taken over the last 10 minutes of
trading leading up to the “closing auction” is used.

Auction price

The session ends with a 5 minute auction (between 5:30PM and 5:35PM) and a random
closing of 30 seconds. The resulting auction price will be the session’s Closing price. In casean Auction price does not exist, the closing price will be the price of the last 500 traded units
closest to their weighted average. If two prices have the same difference with respect to thisweighted price, the price will be the last one executed. If 500 units have not been traded, theclosing price will be the price of the previous session.

5:35PM

2:30PM

Spain

Mercado Continuo
CATS

Sri Lanka

Colombo Stock
Exchange

.CM

SL

XCOL

VWAP

Closing price is defined as the Volume Weighted Average Price (VWAP) of trades executedduring the last one hour of trading of the specific security. If the security does not tradeduring such one hour the closing price will be the VWAP calculated for the period of time it
has traded.

SwedenStockholm Stock
Exchange

.ST

SS

XSTO

Auction price

The official closing price is the result of the closing call which occurs during the last 10
minutes of trading. If no trades are matched in the closing call then the last trade prior to theauction will be defined as the closing price.

5:30PM

.S

SE

XSWX
Auction price

Closing price is the result of the closing auction (the auction pre-opening starting at 5:20PM,
and the auction being run at 5:30PM). If no price update occurs during that auction, the last
paid price on the exchange will represent the reference price. If there is no paid price for the
given security that day, the reference price will be calculated by either taking the bid-price, if
the bid is higher than the reference price, or it will take the ask-price if the ask is lower than
the reference price.

5:30PM

The Swiss
Exchange (SWX)

.MC

SQ

XMCE

Switzerland
Virt-X

.VX

VX

XVTX

TaiwanTaiwan Stock
Exchange

.TW

TT

XTAI

Auction price

The closing price is determined by a closing call auction. The Exchange will accumulate orders
for 5 minutes (from 1:25 p.m. to 1:30 p.m.) before the closing call auction. If there is no
closing auction for a security, the last traded price will be used.

1:30PM

ThailandThe Stock
Exchange Of
Thailand

.BK

TB

XBKK

Auction price

The closing price is defined by using the random call auction method. The closing auction cantake place anytime between 4:35PM and 4:40PM local time. This method apply to securities
trade on both main board and foreign board of stock exchange of Thailand.

4:40PM

Trinidad andTobagoTrinidad andTobago Stock
Exchange

.JM

TP

XTRN

Official Close

The closing price is the Volume Weighted Average Price, calculated as the total value ofshares traded in the day divided by the total volume of shares traded in the same tradingday. If a share does not trade in a trading day, the closing price will be the same as theclosing price of the previous day.

2:00PM

Tunisia

Tunis Stock

.TN

TU

XTUN

Last Trade

Last traded price

11:30AM© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 68 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Country

Exchange

Reuters
Code

Bloomberg
CodeMarketIdentifier
Code
(MIC)

Closing Prices
availability(local time)

Price used

Description (For more detailed information, please contact the relevant exchange)

5:30PM

Exchange

TurkeyIstanbul Stock
Exchange

.IS

TI

XIST

Auction price

The closing price is determined by matching all unmatched orders in the regular session andthe new orders without matching in a pre-determined period of time with the price leading
to the maximum amount of trading volume. If no closing price is provided on a trading day,the closing price of the previous day is used for index calculation.

Ukraine

PFTS

.PFT

UZ

PFTS

Last traded price

Last traded price

5:45PM

UkraineUkrainian
Exchange

.UAX

UK

UKEX

Last traded price

Last traded price

5:30PM

Auction price

The closing price is calculated using an auction during the last ten minutes of the trading
session. Buy and sell orders are queued in the order book with the possibility of changing andcancelling them without any execution. At the end of this period, the closing price will becalculated using the same algorithm of calculating the opening price. The orders will be thenexecuted using the calculated closing price.

2:00PM

Closing price

The Closing price is determined from the Theoretical Auction Price (TAP) at the end of the
pre-closing adjustment session. If there is no order matching at the end of the session, thelast traded price of the continuous trading session shall be the Closing price. If there are no
trades on the same business day, then the previous day’s Closing price shall be the Closing
price.

2:00PM

Closing price

The Closing price is determined from the Theoretical Auction Price (TAP) at the end of the
pre-closing adjustment session. If there is no order matching at the end of the session, thelast traded price of the continuous trading session shall be the Closing price. If there are no
trades on the same business day, then the previous day’s Closing price shall be the Closing
price.

2:00PM

4:35PM

United ArabEmirates

United ArabEmirates

United ArabEmirates

Abu Dhabi
Securities Market

Dubai Financial
MarketNASDAQ Dubai

.AD

.DU

.DI

DH

DB

DU

XADS

XDFM

DIFX

UnitedKingdomLondon Stock
Exchange

.L

LN

XLON

Auction priceFor SETS, the closing trade price is the uncrossing trade price at which orders execute during
an auction, or a Volume Weighted Average Price (VWAP), or the last automatic trade price. If
a closing auction fails to take place, then the VWAP of the last 10 minutes of trading will be
used to set the closing price. If however, no trading has occurred during the VWAP period,
then the last automatic trade price will be used as the official closing price.

UnitedKingdomLondon Stock
Exchange

.L

LN

XLON

Mid price

For SEAQ, SEATS and AIM securities the closing price is the mid price of the best bid and best
offer calculated from market maker quotes at the end of the mandatory quote period.

4:35PM

USA

NASDAQ Capital

.OQ

UR

XNCM

NOCP

The NOCP is either determined using the normalized price of the last trade reported to

4:02PM© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 69 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Country

Exchange

Reuters
Code

Bloomberg
CodeMarketIdentifier
Code
(MIC)

Price used

MarketUSA

NASDAQ Global
MarketDescription (For more detailed information, please contact the relevant exchange)

Closing Prices
availability(local time)

NASDAQ's proprietary trade reporting system or, for selected securities, using the newly
introduced NASDAQ Closing Cross. The normalized NASDAQ Official Closing Price (NOCP)
adjusts reported trade price outside the closing bid-ask spread, "moving up" to the bid
whenever the last sale is below the bid or "moving down" to the ask whenever the last sale isabove the ask.

.OQ

UQ

XNMS

NOCP

The NOCP is either determined using the normalized price of the last trade reported to
NASDAQ's proprietary trade reporting system or, for selected securities, using the newly
introduced NASDAQ Closing Cross. The normalized NASDAQ Official Closing Price (NOCP)
adjusts reported trade price outside the closing bid-ask spread, "moving up" to the bid
whenever the last sale is below the bid or "moving down" to the ask whenever the last sale isabove the ask.

4:02PM

4:02PM

USA

NASDAQ Global
Select Market

.OQ

UW

XNGS

NOCP

The NOCP is either determined using the normalized price of the last trade reported to
NASDAQ's proprietary trade reporting system or, for selected securities, using the newly
introduced NASDAQ Closing Cross. The normalized NASDAQ Official Closing Price (NOCP)
adjusts reported trade price outside the closing bid-ask spread, "moving up" to the bid
whenever the last sale is below the bid or "moving down" to the ask whenever the last sale isabove the ask.

USA

NYSE

.N

UN

XNYS

Last traded price

Last traded price

4:00PM

USA

AMEX

.A

UA

XASE

Last traded price

Last traded price

4:00PM

VietnamHo Chi Minh
Securities Trading
Center

.HM

VM

XSTC

Last traded price

Last traded price

11:00AM

VietnamHanoi Securities
Trading Center

.HN

VH

HSTC

Last traded price

Last traded price

11:00AM

Zimbabwe

Zimbabwe Stock
Exchange

,ZI

ZH

XZIM

Last traded price

Last traded price

12:30PM* Refers to price availability times during DST period in the US.
Prices availability shown in this table refers to the time prices are normally available. It considers changes due to DST periods but no other factors suchas Ramadan period, changes in opening hours on a day prior a holiday, etc.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 70 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

In case of market closure or if a security does not trade on a specific day or a specific period, MSCI carries forward previous day prices (or latest
available closing price) to calculate its indexes.
In case of market outage, MSCI will use the prices provided up to the point of the outage by that market for calculation of MSCI indexes on that day,unless MSCI determines that another price is more appropriate based on the circumstances.
Special note for countries open on Saturday and/or Sunday:
In the event that a security does not trade on a Monday but was traded on the previous Saturday and/or Sunday, the latest price available during theweekend will be used for the Monday index calculation.
In addition, a security that does not trade on Monday but traded ex corporate event during the previous weekend will have the event reflected in the
Monday index calculation.
Special note for Japanese securities:
Japanese companies can be listed simultaneously on more than one stock exchange in Japan. A company may apply for delisting from one stock
exchange while remaining listed in the other stock exchange(s). For such delisting, most Japanese stock exchanges give one month notice prior to thelast trading date of the security. Should such delisting involve a change in primary exchange and/or trigger a change in the price source, MSCI willsource the price of the security from the new primary exchange two weeks after an announcement of delisting from the stock exchange.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 71 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

133709GCC COUNTRIES

133707
ARABIAN MARKETS

136614FM (FRONTIER MARKETS)

899902
AC AMERICAS-

1-Jun2009

-

-

-

-

-

-

-

-

-

-

-

1-Jun-2005

-

-

-

-

-

1-Jun2005-

1-Jan-1970

1-Jan-1988

1-Jan-1988

-

-

-

-

3-Jun2002
27-May2010
-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1-Jan-1988

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1-Jan-1988-

1-Jan-1970

-

-

-

-

-

1-Jan-1988--

1-Jun2005-

CHILE

1-Jan-1988

1-Jan-1988

-

-

-

-

-

-

1-Jan-1988

-

-

-

CHINA

3-Sep-1996

3-Sep-1996

-

-

-

-

-

3-Sep-1996

-

-

-

-

917000COLOMBIA

2-Feb-1994

2-Feb-1994

-

-

-

-

-

-

2-Feb-1994

-

-

-

136635

CROATIA

-

-

-

-

-

-

-

-

-

-

-

920000CZECH REPUBLIC

3-Sep-1996

3-Sep-1996

-

-

-

-

3-Sep-1996

-

-

-

-

3-Jun2002-

920800

DENMARK

1-Jan-1988-

1-Jan-1970

1-Jan-1970

1-Jan-1970-

1-Jan-1988

-

-

-

-

-

MSCI
CODE
903200INDEX NAME
ARGENTINA

903600

AUSTRALIA

904000

AUSTRIA

133712

1-Jan-1988 to
29-May-2009

106400EMU

990300EAFE

990100
THE WORLDINDEX (3)891800 EM(former EMF)

990500EUROPE-

1-Jan-1988

1-Jan-1988
to 29-May2009-

892400 ACWI
(former ACWIF)

302000AC ASIA PACIFIC

302200AC EUROPE & MIDDLE EASTAPPENDIX VIII: COUNTRY COMPOSITION OF MSCI SELECTED REGIONAL INDEXES

-

-

-

-

-

-

1-Jan-1988

1-Jan-1988
to 29-May2009-

1-Jan-1970

1-Jan-1970

-

-

-

1-Jan-1988-

1-Jan-1970

1-Jan-1970

1-Jan-1970

1-Jan-1988

1-Jan-1988

BAHRAIN

-

-

-

-

-

-

700396BANGLADESH

-

-

-

-

-

905600BELGIUM

1-Jan-1988-

1-Jan-1970

1-Jan-1970

700589---700074BOSNIA AND
HERZEGOVINABOTSWANA--

907600BRAZIL

1-Jan-1988

1-Jan-1988

106576BRAZIL FORMER-

136634BULGARIA-

912400CANADA (3)915200302400© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 72 OF 120

136614FM (FRONTIER MARKETS)

133707
ARABIAN MARKETS

133709GCC COUNTRIES

899902
AC AMERICAS

302000AC ASIA PACIFIC

302200AC EUROPE & MIDDLE EAST

106400EMU

990500EUROPE

990300EAFE

990100
THE WORLDINDEX (3)891800 EM(former EMF)

892400 ACWI
(former ACWIF)MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

MSCI
CODE
105766INDEX NAME
EGYPT

1-Jun-2001

1-Jun-2001

-

-

-

-

-

-

-

-

136636ESTONIA

-

-

-

-

-

-

-

-

-

-

1-Jun2005-

924600FINLAND

18-Jan-1993-

1-Jan-1988

1-Jan-1988

1-Jan-1988

1-Jan-1988

1-Jan-1988

-

-

-

-

3-Jun2002-

824600FINLAND FREE

1-Jan-1988 to
17-Jan-1993

-

-

-

-

-

-

-

-

-

-

-

925000FRANCE

1-Jan-1988-

1-Jan-1970

1-Jan-1970

1-Jan-1970

1-Jan-1988

1-Jan-1988

-

-

-

-

-

928000GERMANY

1-Jan-1988-

1-Jan-1970

1-Jan-1970

1-Jan-1970

1-Jan-1988

1-Jan-1988

-

-

-

-

-

700073

GHANA

-

-

-

-

-

-

-

-

-

-

-

-

930000GREECE

1-Jan-1988

1-Jan-1988
to 31-May2001 & 27Nov-2013

1-Jun2001 to
26-Nov2013

1-Jun-2001
to 26-Nov2013

1-Jun-2001
to 26-Nov2013

1-Jun-2001
to 26-Nov2013

1-Jan-1988

-

-

-

-

-

934400HONG KONG

1-Jan-1988-

1-Dec-1972

-

-

-

1-Jan-1988

-

-

-

-

934800HUNGARY

3-Sep-1996

3-Sep-1996

1-Dec1972
-

-

-

-

3-Sep-1996

-

-

-

-

-

935600INDIA

2-Feb-1994

2-Feb-1994

-

-

-

-

-

2-Feb-1994

-

-

-

-

936000INDONESIA FORMER

1-Sep-1989 to
1-Jun-1997

-

-

-

-

-

-

-

-

INDONESIA

2-Jun-1997

-

-

-

-

-

1-Sep-1989
to 1-Jun1997
2-Jun-1997-

105767

1-Sep-1989
to 1-Jun1997
2-Jun-1997

-

-

-

-

937200IRELAND (2)1-Jan-1988

-

-

-

-

2-Mar-1995

-

-

-

-

-

938000ITALY

1-Jan-1988

2-Mar-1995
to 26-May2010-

3-May1993--

2-Feb-1994

3-May1993--

ISRAEL

3-May1993
27-May2010

1-Jan-1988

3004003-May1993
27-May2010
1-Jan-1970

1-Jan-1970

1-Jan-1970

1-Jan-1988

1-Jan-1988

-

-

-

-

-

700071JAMAICA

-

-

-

-

-

-

-

-

-

-

-

-

939200JAPAN

1-Jan-1988-

1-Jan-1970

1-Jan-1970

-

-

-

1-Jan-1988

-

-

-

-

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 73 OF 120-

136614FM (FRONTIER MARKETS)

1-Jun200526-Nov2008

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1-Sep-1998

-

-

-

1-Dec2005
3-Jun2002
-

-

-

-

-

-

-

-

-

-

-

-

7-Jan-1992
to 31-Aug1998--

1-Jun-2005

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1-Jun2005
2-Jun2008-

LUXEMBOURG (2)1-Jan-1988 to
30-Sep-1996

-

-

-

-

-

-

-

-

-

105768

MALAYSIA

2-Jun-1997 to30-Nov-1998& 1-Jun-2000

2-Jun-1997
to 30-Nov1998 & 1Jun-2000

-

-

-

-

1-Jan-1988
to 30-Sep1996-

3-Jun2002
3-Jun2002
26-Nov2008-

2-Jun-1997
to 30-Nov1998 & 1Jun-2000

-

-

-

-

945800

MALAYSIA FORMER

1-Jan-1988 to
1-Jun-1997

-

-

-

-

-

-

-

1-Jan-1988
to 1-Jun1997---

3-May1993 to 30Sep-98--

MAURITIUS

3-May1993 to
30-Sep-98--

136644

1-Jan-1988
to 1-Jun1997
-

-

-

-

848400MEXICO

1-Jan-1988

1-Jan-1988

-

-

-

-

-

-

1-Jan-1988--

3-Jun2002-

948400MEXICO FORMER--

5-Nov1981 to
31-Dec1987

-

-

-

-

-

-

-

-

-

136637KAZAKHSTAN

136643

1-Jan-1988 to
25-Nov-2008

-

-

-

-

-

-

KENYA

-

-

-

-

941000KOREA

1-Sep-1998

1-Sep-1998-

841000KOREA (FORMER) (7)7-Jan-1992 to
31-Aug-1998-

133713KUWAIT-

7-Jan-1992
to 31-Aug1998-

136642LEBANON-

136638LITHUANIA

944200© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 74 OF 120

899902
AC AMERICAS

106400EMU

990300EAFE

990100
THE WORLDINDEX (3)891800 EM(former EMF)--

1-Jan-1988
to 25-Nov2008-

133709GCC COUNTRIES-INDEX NAMEJORDAN

302000AC ASIA PACIFIC
-

MSCI
CODE
940000990500EUROPE--

1-Jan-1988
to 25-Nov2008-

892400 ACWI
(former ACWIF)

133707
ARABIAN MARKETS

302200AC EUROPE & MIDDLE EASTMSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

136614FM (FRONTIER MARKETS)

-

-

-

-

-

1-Jun200527-Nov2013

1-Jan-1970

1-Jan-1970

1-Jan-1970

1-Jan-1988

1-Jan-1988

-

-

-

-

-

1-Jan-1988-

1-Jan-1988

1-Jan-1988

-

-

-

1-Jan-1988

-

-

-

-

NIGERIA

-

-

-

-

-

-

-

-

-

-

-

957800NORWAY

1-Feb-1995-

1-Jan-1970

1-Jan-1970

1-Jan-1970-

1-Jan-1988

-

-

-

-

3-Jun2002-

857800NORWAY FREE (5)1-Jan-1988 to
31-Jan-1995

-

-

-

-

-

-

-

-

-

-

-

133714

OMAN

-

-

-

-

-

-

-

-

-

1-Jun-2005

958600PAKISTAN

2-Feb-1994 to
31-Dec-2008

-

-

-

-

-

-

-

PALESTINE IMI

-

-

-

-

-

-

2-Feb-1994
to 31-Dec2008-

3-Jun2002
1-Jun2009

703301

2-Feb-1994
to 31-Dec2008-

1-Jun2005
-

-

-

-

-

960400PERU

2-Feb-1994

2-Feb-1994

-

-

-

-

-

-

2-Feb-1994

-

-

-

860800PHILIPPINES

1-Jan-1988

1-Jan-1988

-

-

-

-

-

1-Jan-1988

-

-

-

-

960800PHILIPPINES FORMER

-

-

-

-

-

-

-

-

-

-

-

-

961600

POLAND

2-Mar-1995

2-Mar-1995

-

-

-

-

2-Mar-1995

-

-

-

-

-

962000PORTUGAL

1-Jan-1988

01-Dec1997

01-Dec1997

01-Dec1997

01-Dec1997

1-Jan-1988

-

-

-

-

-

133715QATAR-

1-Jan-1988
to 30-Nov1997
2-Jun-2014

-

-

-

-

-

-

-

1-Jun-2005136639ROMANIA

-

-

-

-

-

-

-

-

-

-

1-Jun2005-

105653

RUSSIA

01-Dec-1997

01-Dec-1997

-

-

-

-

01-Dec1997

-

-

-

-

3-Jun2002
1-Dec2005-

952800NETHERLANDS

955400NEW ZEALAND

136645

1-Jun-2001 to
26-Nov-2013

MSCI.COM | PAGE 75 OF 120

899902
AC AMERICAS

106400EMU

990300EAFE

990100
THE WORLDINDEX (3)891800 EM(former EMF)

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

133709GCC COUNTRIES-INDEX NAME
MOROCCO

302000AC ASIA PACIFIC

-

MSCI
CODE
105765990500EUROPE-

1-Jan-1988

1-Jun-2001
to 26-Nov2013-

892400 ACWI
(former ACWIF)

133707
ARABIAN MARKETS

302200AC EUROPE & MIDDLE EASTMSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

136614FM (FRONTIER MARKETS)

133707
ARABIAN MARKETS

133709GCC COUNTRIES

899902
AC AMERICAS

302000AC ASIA PACIFIC

302200AC EUROPE & MIDDLE EAST

106400EMU

990500EUROPE

990300EAFE

990100
THE WORLDINDEX (3)891800 EM(former EMF)

892400 ACWI
(former ACWIF)MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

MSCI
CODE
133716INDEX NAMESAUDI ARABIA

-

-

-

-

-

-

-

-

-

1-Jun-2005

141415SERBIA

-

-

-

-

-

-

-

-

-

-

1-Jun2005-

9981001-Dec-1999--

1-Dec-1999

-

-

-

-

01-Dec1972--

1-Jan-1988 to
30-Apr-1993

01-Dec1972--

970200SINGAPORE(SINGAPORE/MALAYSIA)SINGAPORE (FORMER)

26-Nov2008
-

-

-

-

-

-

-

-

870200SINGAPORE FREE (4) (6)

-

-

-

-

-

-

-

-

-

-

136640SLOVENIA

3-May-1993
to 30-Nov1999
-

-

-

-

-

-

-

1-Jan-1988
to 30-Apr1993
3-May1993 to 30Nov-1999
-

-

-

-

971000SOUTH AFRICA

2-Mar-1995

2-Mar-1995

-

-

-

-

-

-

-

-

-

3-Jun2002-

998000SOUTH AFRICAN GOLDMINES (1)1-Jan-1988 to
1-Mar-1995

-

-

-

-

-

-

-

-

-

-

972400SPAIN

1-Jan-1988-

2-Dec1974 to 1Mar-1995
1-Jan-1970

1-Jan-1970

1-Jan-1970

1-Jan-1988

1-Jan-1988

-

-

-

-

914400

SRI LANKA

2-Feb-1994 to
31-May-2001

-

-

-

-

-

-

SWEDEN

18-Jan-1993

1-Jan-1970

1-Jan-1970

1-Jan-1970-

1-Jan-1988

2-Feb-1994
to 31-May2001--

9752002-Feb-1994
to 31-May2001
-

-

-

-

-

875200

SWEDEN FREE

1-Jan-1988 to
17-Jan-1993

-

-

-

-

-

-

-

-

-

-

975600SWITZERLAND

16-Jul-1992-

1-Jan-1970

1-Jan-1970

1-Jan-1970-

1-Jan-1988

-

-

-

-

-

875600SWITZERLAND FREE

1-Jan-1988 to
15-Jul-1992

-

-

-

-

-

-

-

-

-

-

-

915800TAIWAN

3-Jun-2002

3-Jun-2002

-

-

-

-

-

3-Jun-2002

-

-

-

-

815800TAIWAN@80% (8)3-Sep-1996 to
2-Jun-2002

3-Sep-1996
to 2-Jun2002

-

-

-

-

-

3-Sep-1996
to 2-Jun2002

-

-

-

-

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 76 OF 120-

1-Dec2003

133707
ARABIAN MARKETS

136614FM (FRONTIER MARKETS)

-

-

-

105769THAILAND

700072

TRINIDAD AND TOBAGO

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1-Oct-1996

-

-

-

2-Jun2008-

1-Jun2009 to
31-May2011
1-Jun2004-

136646

-

-

-

-

-

-

-

-

-

-

-

-

-

1-Jun-2005

1-Jan-1970

1-Jan-1970

1-Jan-1970-

1-Jan-1988

-

-

-

1-Jun2005-

1-Jun2006
3-Jun2002-

1-Jan-1970

-

-

-

-

-

1-Jan-1988

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

2-Feb-1994
to 31-May2006---

2-Feb-1994
to 31-May2006
-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1-Dec2006-

1-Jan-1988 to
1-Jun-1997

-

-

-

-

-

-

-

-

-

-

-

-

-

-

TUNISIA

-

-

-

-

-

979200

TURKEY

1-Sep-1989

1-Sep-1989--136641UKRAINE

-

-

-

-

133717

UNITED ARAB EMIRATES-

2-Jun-2014-

982600

UNITED KINGDOM

1-Jan-1988-

984000USA (3)

1-Jan-1988-

886200VENEZUELA

2-Feb-1994 to
31-May-2006

986200VENEZUELA (FORMER)

136647VIETNAM

700873

ZIMBABWE

-

-

-

-

-

-

-

-

899902
AC AMERICAS

106400EMU

990300EAFE

990100
THE WORLDINDEX (3)891800 EM(former EMF)-

2-Jun-1997

1-Jan-1988
to 1-Jun1997
2-Jun-1997

302000AC ASIA PACIFIC

133709GCC COUNTRIESINDEX NAMETHAILAND FORMER

990500EUROPE--

1-Jan-1988
to 1-Jun1997
2-Jun-1997

892400 ACWI
(former ACWIF)
MSCI
CODE
976400302200AC EUROPE & MIDDLE EASTMSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015-

(1)

Excluded from all dividend reinvested indexes.

(2)

Luxembourg has been excluded from dividend reinvested indexes since 01-Jan-1993 and Ireland prior to 03-May-1993.

(3)

Until 29-Nov-1974, the World Index was a weighted arithmetic average of the MSCI EAFE, of the NYSE and the TSE indexes.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 77 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

(4)

Included in Far East Free, Pacific Free and Pacific Free ex Japan since 1-Jan-1988
Those indexes were back-calculated until 1-Jan-1988 in 2003 when Singapore Free was launched(5)

Restrictions appeared since 1-Dec-1989.

(6)

No more foreign quotation since 1-Dec-1999.
Prices taken from the foreign board between 4-May-1988 and 30-Nov-1999.

(7)

Korea was included in the free indexes at 20% of its market cap between 7-Jan-92 and 2-Sep-96 and at 50% between 3-Sep96 and 31-Aug-98.

(8)

Taiwan was included in the free indexes at 50% of its market cap between 3-Sep-96 and 31-May-00, at 65% between 1-Jun00 and 30-Nov-00 and at 80% between 1-Dec-00 and 2-Dec-01.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 78 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

APPENDIX IX: MSCI REAL TIME INDEXESMSCI currently calculates price, net and gross variants for approximately 9,000 equity based
indexes in real time as well as the FX Hedge, Currency, Short/Leveraged and Daily Hedged
indexes. All MSCI Real Time Indexes are calculated based on the corresponding end-of-day
index calculation methodologies.
MSCI disseminates real time indexes every 60 seconds or 15 seconds depending on theindex type and its use in the marketplace. On a daily basis for each real time index, MSCI
will provide an Index Open value (IO) which will occur when the first security belonging tothat index trades, an Index Update value (IU) which will occur throughout the day after theIndex Open has been sent and an Index Close value (IC) which will be sent out as the last realtime level and indicate the real time closing value.8
Real Time Intraday Foreign Exchange Rates vs. Real Time Close Foreign Exchange Rates
MSCI Real Time Indexes use the Reuters Multi Contributor FX Rates for all Index Open andIndex Updates and MSCI applies the WM 4PM London time Closing Mid Rates for the Index
Close.
Mono-currency indexes which are indexes that have exposure to a single currency will havetheir Index Close value sent shortly after the underlying stock exchange(s) close and do not
require the WM 4PM London closing rate to calculate the Index Close.
Multi-currency indexes (which have exposure to multiple currencies) require the WM 4PM
London closing rate to calculate the Index Close. Multi-currency indexes whose underlying
stock exchanges close before the WM 4PM London rates are received will have their lastIndex Update sent shortly after the last underlying stock exchange closes and then will havetheir Index Close sent when the WM 4PM London Close is received. Multi-currency indexes
whose underlying stock exchanges close after the WM 4PM London rates are received willcontinue to use the Reuters Multi Contributor FX rates for all Index Updates until the lastunderlying stock exchange closes and the Index Close is sent using the WM 4PM London
Close.

8

The real time Index Close could be different from the index value for the same index delivered in MSCI’s end-of-day
product files due to manual data updates implemented during the end-of-day calculation process. The official closing
level of any MSCI index is the level distributed in MSCI’s end-of-day product files.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 79 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Real Time Intraday Security Pricing vs. Real Time Close Security Pricing
Index Open and Index Update calculations use the last traded price available and the Index
Close uses the official closing price or last trade as described in the MSCI Closing Prices
Policy found in Appendix VII of this document.
Price filtering
MSCI has various price filters set in place to ensure that high quality prices are used in
MSCI’s Real Time index calculations. MSCI’s price market filters exclude trades such as block
sales and odd lots among others and MSCI’s price threshold filters ensure that pricefluctuations above or below a certain threshold are checked prior to being included in thecalculation of the MSCI Real Time Indexes.
Real Time Cash Dividend Reinvestment
Consistent with the Daily Total Return (DTR) end-of-day index calculation methodology,
MSCI’s real time DTR calculation will reinvest a dividend only if the security paying thedividend trades on the ex-date. The dividend will be reflected in real time index calculations
as soon as the security paying the dividend trades in real time. If the security does nottrade on the ex-date or on the scheduled reinvestment date, the dividend reinvestment will
be postponed to the day when the security resumes trading. Late dividends or corrections
will be treated in real time calculations consistent with the end-of-day DTR index calculation
methodology. For more details on MSCI’s DTR methodology please refer to the Section 2.
General Announcement Policy for Dividends
Upcoming dividends to be reinvested in the MSCI DTR Indexes are announced prior to theirreinvestment in the MSCI Security Advanced Dividend File.
Late dividends and dividend corrections that are received after their ex-date are reinvested
or corrected in the MSCI DTR Indexes on the next business day following the reception datefrom the data sources. Therefore, there is at least one day’s notice through the MSCI
Security Advanced Dividend File prior to their reinvestment and / or correction.
In exceptional cases, MSCI will announce the treatment of dividends that are not preannounced in the MSCI Security Advanced Dividend File and are received by MSCI duringmarket hours on their ex-date through an intraday option email announcement.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 80 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Intraday Price Adjustment Factor (PAF) Announcements
MSCI sends an Opening and Closing PAF announcement for all Real Time constituents thathave a corporate event effective involving the calculation of a theo-cum PAF such as a
special cash dividend, capital repayment or when a shareholder receives something otherthan the underlying asset.
The opening PAF announcement uses the opening price of the security. It is provided for
information purpose and is sent shortly after the first trade of the security having thecorporate event. However, Real Time indexes are computed using a PAF that is calculatedusing real time prices throughout the day.
The closing PAF announcement uses the closing price of the security having the corporate
event and is used in the Index Close calculation. The closing PAF value is sent shortly after
the closing price of the security having the corporate event is received. For more
information on corporate events, please see the MSCI Corporate Event Methodology
document.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 81 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

APPENDIX X: INDEX CALCULATION METHODOLOGY USING INDEXDIVISORSINTRODUCTION
An index level is calculated by multiplying the weighted average performance of the index
constituents by the previous index level. This section presents an alternative way of
calculating an index level (which is similar to the traditional way of valuing a portfolio), by
simply multiplying asset constituent quantities by current prices, and adding up the results.
The index divisor concept, introduced below, is central to this alternative index calculation.
When calculating a security’s performance on days with certain corporate events, a priceadjustment factor (PAF) is needed to ensure historical price comparability. This factor often
accounts for assets that contribute to the index performance for a day, such as rights
offerings, spun-off companies or cash. In the alternative index calculation methodology
described herein, the PAF is replaced by the interim constituents, which explicitly capture
the impact of corporate events.

DEFINITIONS
Index Divisor (t)The index divisor for a day t is defined as the ratio of the initial market capitalization and theprevious index level.

The index divisor does not change unless the index composition changes, e.g., in cases ofcorporate events and index additions / deletions where a change in index market
capitalization is not due to performance and does not correspond to a change in the index
level.
The index divisor for day t is known after the close of day t-1 (the initial index market
capitalization is calculated using prices and exchange rates as of day t-1 but constituents asof t).
The index divisor can be calculated in any currency: both the index initial market
capitalization and the previous index level need to be expressed in that currency.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 82 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Index Unit
The index unit describes the set of index constituents and corresponding quantities of total
value equal to the index level. It can be derived by dividing the total index quantities by theindex divisor.
Intraday Index Number of Shares (t)The intraday index number of shares is the number of shares of a security taken into
account for the index calculation and valid both intraday and at the close of day t (before
any changes due to corporate events or index reviews). Note that it is adjusted by thevarious index inclusion factors, such as the Foreign Inclusion Factor (FIF)9, for day t. Also,
note that it can be different from the number of shares used for the index calculation
described in Section 1.1 (which is an end of day number of shares) in cases of corporate
events.
Intraday Index Unit Number of Shares (t)The intraday index unit number of shares is the intraday index number of shares expressedfor one index unit. It is defined as the ratio of the intraday index number of shares and theindex divisor.

End of Day Index Number of Shares (t)The end of day index number of shares is the number of shares of a security taken into
account for the index calculation for the next day (t+1) but expressed on a pre t+1 events
basis (for example, if a company has a stock split on t+1, the end of day index number ofshares for day t will be on a pre-split basis). This number of shares, however, takes into
account changes due to corporate events effective as of the close of t and is adjusted by thevarious index inclusion factors such as the Foreign Inclusion Factor (FIF) for day t+1. Notethat it is based on the same number of shares as the one used for the index calculation on
t+1 (EndOfDayIndexNumberOfSharest) and described in Section 1.1.

9 Index inclusion factors encompass any inclusion factors specific to a given index, for example, the Value Inclusion Factor(VIF) for a Value index.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 83 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

End of Day Index Unit Number of Shares (t)The end of day index unit number of shares is the end of day index number of shares
expressed for one index unit. It is defined as the ratio of the end of day index number ofshares and the index divisor for t+1.

The index unit composition changes from the intraday index unit number of shares to theend of day index unit number of shares as of the close of day t, i.e., the index unit number ofshares change is calculated as

Index Dividend Points
Index dividend points express dividends paid in an index unit for a given day. They represent
dividends as a fraction of the index level itself. To provide advance notice, MSCI calculates
both the preliminary index dividend points on t-1 for t that use exchange rates as of t-1 andthe final index dividend points on t using t exchange rates and capturing the effect of theintraday dividend changes on t, if any.
Both gross and net index dividend points can be calculated for a price index variant: theyexpress the amount of dividends paid by a price index unit.
Net (gross) index dividend points can be calculated for a net (gross) index variant: theyexpress the amount of dividends reinvested in the net (gross) index unit.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 84 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Dividend points can be aggregated at index level.
∑∑

Pre-open Price
The pre-open price of a security on day t is its closing price of day t-1 theoretically adjusted
for the effects of corporate events affecting the security ex on day t.

CALCULATING THE INDEX
Index Calculation Formula
The index unit value serves to calculate the index level. The equation below is valid both
intraday and as of the close.
∑

where Pricei,t is replaced by the pre-open price for the constituents that have not yet tradedon t and I is the index unit constituent set. The previous index level can also be recalculated
by using pre-open prices and exchange rates of the previous day.
∑Index Calculation Example
Consider the MSCI Austria index unit on October 27, 2009 described below. Its composition
is fully known after the close of October 26, 2009 and is described by the constituent list andthe intraday index unit number of shares (column F) calculated as the ratio of the intradayindex number of shares and the index divisor.
To calculate the index level on October 27, 2009 (intraday or close), current prices andexchange rates (columns I and J respectively) are used for each constituent, and the market
capitalization of the constituent in the index unit (column K) is obtained by multiplying theintraday index unit NOS by the prices and dividing by the exchange rate. The sum of thecolumn K gives the value of the index unit, which is equal to the index level.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 85 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Divisor (As of Date)A

B

Calculation
As of Date
Date

21,413,261
CSecurity NameD
Idx Incl
Flag (asof date)E
IntradayIndex NOSMMF
IntradayIdx Unit
NOS

I

J

K
Mcap inPrice (As FX (As of
Idx Unitof Date)Date)
D*F*I/J

10/26/2009

10/27/2009

ERSTE GROUP BANK

1

174.36

8.14

28.50

0.67

344

10/26/2009

10/27/2009

OMV AG1

150.00

7.01

29.03

0.67

301

10/26/2009

10/27/2009

TELEKOM AUSTRIA

1

322.00

15.04

11.88

0.67

265

10/26/2009

10/27/2009

VOESTALPINE

1

117.53

5.49

23.83

0.67

194

10/26/2009

10/27/2009

VERBUND OESTERR ELEK A

1

77.05

3.60

31.80

0.67

170

10/26/2009

10/27/2009

RAIFFEISEN INT'L BANK

1

54.13

2.53

42.50

0.67

159

10/26/2009

10/27/2009 VIENNA INSURANCE GROUP

1

38.40

1.79

41.10

0.67

109

* Columns A-F come from the MSCI Market Open Index File
The file will be distributed after the close of October 26 for use on October 27

Index (USD) 1,541.96

CALCULATING INDEX UNIT CHANGES DUE TO CORPORATE EVENTS AND INDEXREBALANCINGS
As corporate events and rebalancings occur, the index unit composition can change. All
adjustments are based on closing prices. To get the index unit adjustment, the new index
divisor needs to be calculated. Dividing the end of day index number of shares by the newindex divisor results in the end of day index unit number of shares. Given the equations(coming from the divisor definition), and(coming from the divisor definition and the fact
the index level is proportional to the index market capitalization on any given day), a
practical way of calculating the new divisor is

As an example, consider the MSCI Brazil index unit on October 21, 2009 described below.
Effective October 22, 2009, a new security, BC SANTANDER BRASIL UNIT will be added to the© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 86 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

index. Hence, the index divisor and the index unit composition will change as of the close of
October 21, 2009.
A new index divisor (for October 22, 2009) is calculated by multiplying the current divisor(for October 21, 2009) by the sum of the next day constituents’ initial market capitalizations(column M) and dividing by the current index market capitalization (sum of column L). The
new end of day index unit number of shares (column N) is calculated by dividing the end of
day index number of shares (column H) by the new divisor. The index unit composition isadjusted by the difference between the end of day index unit number of shares and intradayindex unit number of shares (column O): in this case, 0.16 shares of BC SANTANDER BRASIL
UNIT are added to the index unit by decreasing the index unit number of shares of all theother index constituents.

Divisor (As of Date)

142,324,185

Divisor (As of Date + 1) 144,319,620
A

B

Calculation
As of Date
Date

C
Security Name

10/20/2009 10/21/2009 BC SANTANDER BRASIL UNITD
Idx Incl
Flag (asof date)E
IntradayIndex NOSMMFGHIntraday Idx Incl
End of Day
Idx Unit Flag (as of Index NOS
NOS
date + 1)
MM

J

L
M
N
O
Mcap
Initial Mcap End of Day Idx Unit NOS
Price (As FX (As of(As of Date) (As of Date + 1) Idx Unit
Changeof Date) Date)
D*E*I/J
G*H*I/J
NOS
(N-F)

1

525

23.19

1.74

0

7,017

0.16

0.16

10/20/2009 10/21/2009

PETROBRAS PN

1

3,146

22.10

1

3,146

36.70

1.74

66,53866,538

21.80

-0.31

10/20/2009 10/21/2009

PETROBRAS ON

1

2,283

16.04

1

2,283

43.00

1.74

56,58256,582

15.82

-0.22

10/20/2009 10/21/2009

VALE PNA

1

2,109

14.82

1

2,109

40.77

1.74

49,54949,549

14.61

-0.20

10/20/2009 10/21/2009

ITAU UNIBANCO PN

1

2,053

14.43

1

2,053

36.00

1.74

42,60842,608

14.23

-0.20

10/20/2009 10/21/2009

VALE ON

1

1,440

10.12

1

1,440

46.11

1.74

38,272

38,272

9.98

-0.14

10/20/2009 10/21/2009

BANCO BRADESCO PN

1

1,535

10.78

1

1,535

36.00

1.74

31,84931,849

10.64

-0.15

1

397

2.79

1

397

63.50

1.74

14,51914,519

2.75

-0.04

10/20/2009 10/21/2009 CSN SIDERURGICA NAC'L ON

0I* Subset of the MSCI Brazil Index Unit

INTERIM CONSTITUENTS10
On days with certain corporate events, the index can hold constituents that influence theperformance for a day. When calculating the index performance using price adjustment
factors (as described in section 1.1), these do not appear explicitly in the calculation formula
but are accounted for implicitly by applying a price adjustment factor (PAF) on thecapitalization of the security affected by the corporate event. The index, however, is
exposed to all the constituents and when valuing an index unit, these need to be explicitly
taken into account. For example, the following corporate events result in a creation ofinterim constituents:

10 Interim constituents will be added to the product files in the second phase of the MSCI Market Open Index product(expected delivery at the end of 2010)© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 87 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Capital Repayments: the index calculation assumes that cash is received in the index andheld until the close when it is finally reinvested in the index so cash effectively brings
performance to the index on the ex-date and is part of the index unit
Spin-off with the spun-off company not eligible for the index: the calculation assumes thatthe spun-off company is received in the index on the ex-date and is held until the close when
it is finally sold and the proceeds reinvested back in the index. In this case, the spun-off
company is effectively part of the index on the ex-date
Note that the interim constituents play a similar role in the index calculation as the priceadjustment factor (PAF) and the resulting index levels are exactly the same whether using
interim constituents or PAFs.
To explain how interim constituents are created, several examples of common corporate
events are described below. Some corporate events can result in the creation of more than
one interim constituent, but these can also be broken up in several simple consecutive
corporate events.
ExamplesCapital Repayment
As an example, consider the repayment of EUR 0.4 per share by ELISA A effective October
26, 2009. According to the calculation methodology, this cash is reinvested back in the index
as of the close of the ex date, October 26, 2009. Hence, intraday, the MSCI Finland index
unit holds both ELISA A and the cash. An interim constituent is therefore added to the index
unit, as shown below, with the following characteristics:
Intraday index unit number of shares equal to the stock that repaid capital (given that eachshare of ELISA A in the index unit is entitled to the cash payment)
Fixed price equals to the repayment amount, EUR 0.40.
Cash will leave the index unit as of the close of October 26 (as indicated by column G) andthe proceeds reinvested back in the index. Repeating the calculations described in theprevious section gives the index unit number of shares change (column O) that represents
the theoretical trade adjustment to the index unit: cash is “sold” (negative change) while theindex unit holdings in all the other constituents increase (positive change)© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 88 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Divisor (As of Date)

249,175,772

Divisor (As of Date + 1) 249,001,078
A

B

Calculation
As of Date
Date

C
Security Name

10/25/2009

10/26/2009

ELISA A

10/25/2009

10/26/2009

ELISA A (INTERIM 1)*

10/25/2009

10/26/2009

10/25/2009

10/26/2009

10/25/2009

10/26/2009

10/25/2009

Interimconstituent type

DInterim const. Idx Incl
trading
Flag (asstatusof date)E
IntradayIndex NOSMMFGIntraday Idx Incl
Idx Unit Flag (as of
NOS
date + 1)

1

133

0.53

1

1

133

0.53

0

NOKIA CORP

1

3,745

15.03

1

FORTUM CORP

1

444

1.78

1

SAMPO A

1

420

1.69

10/26/2009

UPM-KYMMENE

1520

10/25/2009

10/26/2009

KONE B1

10/25/2009

10/26/2009

STORA ENSO R

10/25/2009

10/26/2009

10/25/2009

10/26/2009

H
End of Day
Index NOS
MM

13.90

0.67

2,763

2,763

0.53

0.0004

0.40

0.67

80

0

0.00

-0.5339

3,745

8.78

0.67

49,12949,12915.04

0.0105

444

16.65

0.67

11,05011,0501.78

0.0013

1

420

16.76

0.67

10,521

10,5211.69

0.0012

2.09

1

520

8.11

0.67

6,301

6,301

2.09

0.0015

154

0.62

1

154

26.30

0.67

6,040

6,040

0.62

0.0004

1

582

2.33

1

582

5.29

0.67

4,598

4,598

2.34

0.0016

METSO CORP

1

128

0.51

1

128

18.74

0.67

3,572

3,572

0.51

0.0004

WARTSILA B

1

84

0.34

1

84

25.83

0.67

3,235

3,235

0.34

0.0002

CASH

FIXED

133

I
J
L
M
N
O
Mcap
Initial Mcap End of Day Idx Unit NOS
Price (As FX (As of(As of Date) (As of Date + 1) Idx Unit
Changeof Date) Date)
D*E*I/J
G*H*I/J
NOS(N-F)

Subset of the MSCI Finland* Interim constituents will be added to the product files in the second phase of the MSCI Market Open Index project (expected d elivery at the end of 2010)

Spin-off with the Spun-off Company Traded on the Ex date
As an example, consider the spin-off of GAM HOLDING by JULIUS BAER HOLDING with 1:1
terms effective October 1, 2009 for the MSCI Switzerland Large Cap index (displayed below).
The spun-off company is not eligible to stay in the index.
On the ex date (October 1, 2009), the spun-off company still brings performance to theindex and is hence part of the index unit. It is therefore part of the index with the following
characteristics:
Intraday index unit number of shares calculated according to the terms (intraday index unit
number of shares of the parent stock * 1/1)
Market price given that the spun-off company is traded on the ex-date.
It is “sold” from the MSCI Switzerland Large Cap index unit at the close of the ex-date andthe proceeds are reinvested back in the index. To determine the index unit number of shares(column O), the calculations described in the previous section should be repeated.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 89 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Divisor (As of Date)

861,052,729

Divisor (As of Date + 1) 857,954,025
A

B

Calculation
As of Date
Date

C
Security NameD
Underlying Interim const. Idx Incl
Asset
trading
Flag (asDescription
statusof date)E
IntradayIndex NOS
MM

F
G
H
I
J
L
M
N
O
Intraday Idx Incl
End of Day
Mcap
Initial Mcap End of Day Idx Unit NOS
Price (As FX (As of
Idx Unit Flag (as of Index NOS(As of Date) (As of Date + 1) Idx Unit
Changeof Date) Date)
NOS
date + 1)
MM
D*E*I/J
G*H*I/J
NOS
(N-F)

1

211

0.25

1

1

211

0.25

0

38.30

1.04

7,765

7,765

0.25

0.0009

12.00

1.04

2,433

0

0.00

-0.2451

NESTLE

1

3,639

4.23

1

ROCHE HOLDING GENUSS

1

703

0.82

1

3,639

43.96

1.04

153,656

153,656

4.24

0.0153703

166.301.04

112,240

112,240

0.82

NOVARTIS

1

2,115

2.46

0.0029

1

2,115

51.65

1.04

104,937

104,937

2.47

10/1/2009

UBS NAMEN

1

3,558

0.0089

4.13

1

3,558

18.39

1.04

62,85962,8594.15

9/30/2009

10/1/2009

CREDIT SUISSE

10.0149

1,125

1.31

1

1,125

57.45

1.04

62,111

62,1111.31

9/30/2009

10/1/2009

ABB LTD

0.0047

1

2,207

2.56

1

2,207

20.46

1.04

43,372

43,372

2.57

9/30/2009

10/1/20090.0093

ZURICH FINL SERVICES

1

147

0.17

1

147

244.801.04

34,552

34,5520.17

9/30/2009

10/1/2009

0.0006SYNGENTA

1

97

0.11

1

97

229.901.04

21,404

21,4040.11

0.0004

HOLCIM
1
245
0.28
1
245
68.50
1.04
Subset of the MSCI Switzerland Large Cap Index Unit
* Interim constituents will be added to the product files in the second phase of the MSCI Market Open Index project (expected delivery at the end of 2010)

16,143

16,1430.29

0.00109/30/2009

10/1/2009

9/30/2009

10/1/2009

9/30/2009

10/1/2009

9/30/2009

10/1/2009

9/30/2009

10/1/2009

9/30/2009

9/30/2009JULIUS BAER HOLDINGJULIUS BAER HOLDING(INTERIM 1)*

Interimconstituent type

OTHER ASSET
DISTRIBUTEDGAM HOLDINGTRADED

211

10/1/2009

Spin-off with Spun-off Not Traded on the Ex date
As an example, consider the spinoff of SONAE CAPITAL by SONAE SGPS effective January 4,
2008. Given that the spun-off company is not trading on the ex-date but the market
capitalization of the parent stock drops nevertheless to account for the value of the spun-off
company, MSCI creates a “dummy” security called “detached” to represent it. Its price iscalculated as the difference between the cum and ex prices of the parent security on the exdate from the ex-date + 1 onwards. It will be carried in the index at this calculated fixedprice until the day it starts trading where it is either added to the index or deleted at the endof the first trading day. On the ex-date, however, it is represented by an interim constituent
with the following characteristics:
Intraday index unit number of shares equal to the parent company (terms are notconsidered as this is a “dummy” security
Calculated price in real time equal to the difference between the cum price (closing price ofthe previous day) of the parent company and the ex (current) priceAt the close of the ex-date, the interim constituent is replaced by the detached security.
Note that there is no divisor change and hence no index unit number of shares change.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 90 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Divisor (As of Date)

216,755,858

Divisor (As of Date + 1) 216,755,858
AB

Calculation
As of Date
Date

C
Security Name

Interimconstituent
type

Underlying Interim const.
Asset
trading
Description
statusPricing
FormulaD
Idx Incl
Flag (asof date)E
IntradayIndex NOSMMFGHIntraday Idx Incl
End of Day
Idx Unit Flag (as of Index NOS
NOS
date + 1)
MM

1

800

3.69

1

1

800

3.69

0

1/3/2008

1/4/2008

SONAE SGPS

1/3/2008

1/4/2008

SONAE SGPS (INTERIM 1)*

1.65

0.68

1,950

1,950

3.69

0.0000

0.26

0.68

307

0

0.00

-3.6908

1/3/2008

1/4/2008

SONAE SGPS (DETACHED)

01

1/3/2008

1/4/2008

EDP ENERGIAS DE PORTUGAL

1

2,011

9.28

1

800

0.26

0.68

0

307

3.69

3.6908

2,011

4.54

0.68

13,49013,4909.28

1/3/2008

1/4/2008

PORTUGAL TELECOM SGPS

1

790

3.65

1

790

0.00008.70

0.68

10,157

10,1573.65

1/3/2008

1/4/2008

BCP BANCO COMERCIAL

1

1,806

8.33

1

1/3/2008

1/4/2008

BANCO ESPIRITO SANTO

1

225

1.04

1

0.0000

1,806

2.72

0.68

7,256

7,256

8.33

0.0000

225

14.45

0.68

4,804

4,804

1.04

1/3/2008

1/4/2008

BRISA

1

300

1.38

0.0000

1

300

10.00

0.68

4,432

4,432

1.38

1/3/2008

1/4/2008

PT MULTIMEDIA SERVIC COM

1

2350.0000

1.09

1

235

9.25

0.68

3,216

3,216

1.09

1/3/2008

1/4/2008

CIMPOR CIMENTOS DE PORT

10.0000

202

0.93

1

202

6.03

0.68

1,796

1,796

0.93

1/3/2008

1/4/2008

BANCO BPI

0.0000

1

228

1.05

1

228

4.97

0.68

1,674

1,674

1.05

1/3/2008

1/4/2008

0.0000JERONIMO MARTINS SGPS

1

189

0.87

1

189

5.59

0.68

1,559

1,559

0.87

1/3/2008

1/4/2008

0.0000SONAE INDUSTRIA SGPS

1

63

0.29

1

63

6.11

0.68

569

569

0.29

0.0000OTHER ASSET
1.91 - SONAESONAE CAPITAL Calculated
DISTRIBUTEDSGPS P(t)

800

I
J
L
M
N
O
Mcap
Initial Mcap End of Day Idx Unit NOS
Price (As FX (As of(As of Date) (As of Date + 1) Idx Unit
Changeof Date) Date)
D*E*I/J
G*H*I/J
NOS(N-F)

Subset of the MSCI Portugal Index Unit
* Interim constituents will be added to the product files in the second phase of the MSCI Market Open Index project (expected delivery at the end of 2010)

Rights Issue
As an example, consider the rights issue for BALFOUR BEATTY effective October 8, 2009 in
the MSCI UK Index11 and described below. 3 rights were offered for every 7 shares held at
1.8 GBP.
The performance of the index on the ex-date reflects an exposure to the rights and the
BALFOUR BEATTY weight increases only as of the close of the ex-date. Note that theadjustment for a rights issue is always theoretical (the intrinsic value of the right is thedifference between the underlying stock price and the subscription price), even if the rights
will list on an exchange. An interim constituent with the following characteristics is created:
Intraday index unit number of shares calculated according to the terms (intraday index unit
number of shares of BALFOUR BEATTY times 3/7)
A calculated price defined as the price of BALFOUR BEATTY minus the subscription price of
1.8
At the end of the day, the interim constituent is deleted from the index (the rights are
subscribed to) and the exposure to BALFOUR BEATTY increases (its intraday index number ofshares and the divisor increase). The index unit adjustment (column O) is given by thecalculations described in the previous sections.

11

Note that this example is based on the current adjustment methodology for rights issue. The methodology being
different before November 2009, the published index level was calculated in a different way in practice© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 91 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Divisor (As of Date)

2,020,072,842

Divisor (As of Date + 1) 2,020,659,252
A

B

Calculation
As of Date
Date

C
Security Name

10/7/2009

10/8/2009

BALFOUR BEATTY

10/7/2009

10/8/2009

BALFOUR BEATTY (INTERIM 1)*

10/7/2009

10/8/2009

10/7/2009

10/8/2009

10/7/2009

Interim constituent
type

DInterim const.
Idx Incl
trading
Pricing Formula Flag (asstatusof date)E
IntradayIndex NOS
MM

F
G
H
I
J
K
L
M
N
O
Intraday Idx Incl
End of Day
Mcap in
Mcap
Initial Mcap End of Day Idx Unit NOS
Price (As FX (As of
Idx Unit Flag (as of Index NOS
Idx Unit (As of Date) (As of Date + 1) Idx Unit
Changeof Date) Date)
NOS
date + 1)
MM
D*F*I/J D*E*I/J
G*H*I/J
NOS
(N-F)

1

478

0.24

1

683

2.80

0.62

1

2,152

3,074

0.34

0.1013

1

205

0.10

0

0

1.00

0.62

0

329

0

0.00

-0.1014HSBC HOLDINGS (GB)1

17,3158.57

117,315

7.12

0.62

98

198,497

198,497

8.57-0.002BP

1

18,7389.28

118,738

5.46

0.62

81

164,556

164,556

9.27-0.003

10/8/2009

VODAFONE GROUP

1

52,48725.98

152,487

1.35

0.62

56

113,736

113,736

25.98-0.008

10/7/2009

10/8/2009

GLAXOSMITHKLINE

1

5,188

2.57

1

5,188

12.35

0.62

51

103,157

103,157

2.57-0.001

10/7/2009

10/8/2009

ROYAL DUTCH SHELL A

1

3,546

1.76

1

3,546

17.68

0.62

50

100,892

100,892

1.75-0.001

10/7/2009

10/8/2009

ROYAL DUTCH SHELL B

1

2,696

1.33

1

2,696

17.18

0.62

37

74,561

74,561

1.33

0.000

THEO RIGHT - NEW
BALFOURCALCULATEDUNDERLYING SHRAES
BEATTY P(t) - 1.8

Subset of the MSCI UK Index Unit
* Interim constituents will be added to the product files in the second phase of the MSCI Market Open Index project (expected delivery at the end of 2010)© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 92 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Interim Constituent Creation Rules

Buyback

Description of event

Parent Security
Intraday NOS*

Parent Security
Pre-open Price

Against Cash-

EndOfDayNOS(t-1)
adjusted to take only
into account theshares that have notbeen bought backTheo-ex price taking into
account the terms of the
event

Theo-ex price taking into
account the terms of theevent

Trading
StatusInterim Constituent
Intraday NOS

InterimConstituent
Pre-open Price

Interim Constituent
Intraday/Closing
Price

Fixed

EndOfDayNOS(t-1) ofparent security adjusted
to take into account theshares that have beenbought backBuyback price

Buyback price

OTHER ASSETACQUIRED

TradedEndOfDayNOS(t-1) ofparent security adjusted
to take into account theshares that have beenbought back and theamount of other asset
acquired

Other asset
acquired price

Other asset
acquired priceInterimConstituent Type

CASH

Buyback

Exchange ofShares-EndOfDayNOS(t-1)
adjusted to take only
into account theshares that have notbeen bought back

CapitalRepayment--

EndOfDayNOS(t-1)

Theo-ex price taking into
account the terms of the
event

CASH

Fixed

EndOfDayNOS(t-1) ofparent security

Cash amount

Cash amount

Installment
Receipt--

EndOfDayNOS(t-1)

Theo-ex price taking into
account the terms of the
event

CASH

Fixed

EndOfDayNOS(t-1) ofparent security- [minus] Cashamount- [minus] Cashamount-EndOfDayNOS(t-1)
adjusted to take only
into account theshares that have notbeen bought backTheo-ex price taking into
account the terms of theevent

TradedEndOfDayNOS(t-1) ofparent security adjusted
to take into account theshares that have beenbought back and theamount of other asset
acquired

Other asset
acquired price

Other asset
acquired price-

EndOfDayNOS(t-1)
adjusted to take only
into account theshares that have notbeen bought backTheo-ex price taking into
account the terms of the
event

Fixed

EndOfDayNOS(t-1) ofparent security adjusted
to take into account theshares that have beenbought backTender offer
price

Tender offer price

Theo-ex price taking into
account the terms of the
event

CASH

Fixed

EndOfDayNOS(t-1) ofparent security adjusted
to take into account theshares that have beenbought back

Redemption
price

Redemption price

Theo-ex price taking into
account the terms of the

THEORETICALRIGHT - NEW

Calculated

EndOfDayNOS(t-1) ofparent security adjusted

Theo-ex price ofparentEx price of parent
constituent -PartialTender
Offer

PartialTenderOffer

Exchange ofSharesAgainst Cash

RedemptionAgainst Cash-

EndOfDayNOS(t-1)
adjusted to take only
into account theshares that have notbeen bought backRights Issue

Right of New
Underlying-

EndOfDayNOS(t-1)© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

OTHER ASSETACQUIRED

CASH

MSCI.COM | PAGE 93 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Parent Security
Intraday NOS*

Description of event
SharesRights Issue

Rights Issue

Right of New
Underlying
Shares Not
Entitled toForthcoming
Dividend

Right of New
Underlying
Shares withAnother
Asset (bond,warrant,
preferred,etc.)
attached-

If market
right istradedIf market
right is nottraded but
other asset
attached is
tradedEndOfDayNOS(t-1)

EndOfDayNOS(t-1)

EndOfDayNOS(t-1)

Parent Security
Pre-open Price

InterimConstituent Typeevent

UNDERLYINGSHARES

Theo-ex price taking into
account the terms of the
event

Theo-ex price taking into
account the terms of the
event

Theo-ex price taking into
account the terms of theevent© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

THEORETICALRIGHT - NEW
UNDERLYINGSHARES

Trading
StatusInterim Constituent
Intraday NOS
by the terms of the rightCalculated

EndOfDayNOS(t-1) ofparent security adjusted
by the terms of the rightIf market right is tradedfor one "old" share:
EndOfDayNOS(t-1) ofparent security
MARKET RIGHTTHEORETICALRIGHT - NEW
UNDERLYINGSHARES

TradedCalculated
andandtradedOTHER ASSETATTACHED

MSCI.COM | PAGE 94 OF 120

If market right is tradedfor one "new" share:
EndOfDayNOS(t-1) ofparent security adjusted
by the terms of the right"Theoretical rightconstituent":
EndOfDayNOS(t-1) ofparent security adjusted
for the terms of the right"OtherAssetAttachedconstituent":
EndOfDayNOS(t-1) ofparent security adjusted

InterimConstituent
Pre-open Price

Interim Constituent
Intraday/Closing
Priceconstituent subscription
price

subscription price

Theo-ex price ofparentconstituent subscription
price - grossdividend per
share
If market right istraded for one"old" share:
Market right or
Theo-ex price ofparentconstituent subscription
price adjusted
for the terms of
the right

Ex price of parent
constituent subscription price gross dividend per
share

Market rightIf market right istraded for one"new" share:
Market right or
Theo-ex price ofparentconstituent subscription
price"Theo rightconstituent":
Theo-ex price ofparent security subscription
price"OtherAssetAtta
ched
constituent":
Other Asset"Theo rightconstituent":
Ex price of parent
security subscription price"OtherAssetAttached constituent":
Other Asset
Attached priceMSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Parent Security
Intraday NOS*

Description of event

If market
right andother asset
attached
price are nottradedIf Other
Asset
Acquired is
tradedRights Issue

Right of
Another
Type ofAsset (bond,warrant,
preferred,etc.)

Parent Security
Pre-open Price

InterimConstituent TypeEndOfDayNOS(t-1)

Theo-ex price taking into
account the terms of the
event

THEORETICALRIGHT - NEW
UNDERLYINGSHARES

EndOfDayNOS(t-1)

Theo-ex price taking into
account the terms of the
event

THEORETICALRIGHT - OTHERASSET ACQUIRED

If market
right istradedEndOfDayNOS(t-1)

Rights Issue

Right of
Shares in
Another
ListedSecurity-

SpecialDividendAnadjustment
is made for
specialdividends
when theimpact ofdividend on
the price ofthe day prior
the ex-date-

Interim Constituent
Intraday NOS

InterimConstituent
Pre-open Priceby the terms of the rightAttached priceCalculated

EndOfDayNOS(t-1) ofparent security adjusted
by the terms of the right

Theo-ex price ofparentconstituent subscription
price

Ex price of parent
constituent subscription priceCalculated

EndOfDayNOS(t-1) ofparent security adjusted
by the terms of the right

Other asset
acquired price subscription
price
or
NULL

Other asset
acquired price subscription priceIf market right is tradedfor one "old" share:
EndOfDayNOS(t-1) ofparent security

If market right istraded for one"old" share:
Market right or
NULL

Trading
StatusInterim Constituent
Intraday/Closing
Price

Theo-ex price taking into
account the terms of theevent

MARKET RIGHT

EndOfDayNOS(t-1)

Theo-ex price taking into
account the terms of the
event

THEORETICALRIGHT - OTHERASSET ACQUIRED

Calculated

EndOfDayNOS(t-1) ofparent security adjusted
by the terms of the right

Other asset
acquired price subscription
price

Other asset
acquired price subscription price

EndOfDayNOS(t-1)

Theo-ex price taking into
account the terms of the
event

CASH

Fixed

EndOfDayNOS(t-1) ofparent security

Cash amount

Cash amount© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 95 OF 120

TradedIf market right is tradedfor one "new" share:
EndOfDayNOS(t-1) ofparent security adjusted
for the terms of the rightMarket rightIf market right istraded for one"new" share:
Market right or
NULL

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Description of event

Parent Security
Intraday NOS*

Parent Security
Pre-open Price

InterimConstituent TypeEndOfDayNOS(t-1)

Theo-ex price taking into
account the terms of the
event

OTHER ASSET
DISTRIBUTEDOTHER ASSET
DISTRIBUTED

Trading
StatusInterim Constituent
Intraday NOS

InterimConstituent
Pre-open Price

Interim Constituent
Intraday/Closing
Price

TradedEndOfDayNOS(t-1) ofparent security adjusted
by the terms of the spinoff

Other AssetDistributed price

Other AssetDistributed priceCalculated

EndOfDayNOS(t-1) ofparent security

Other AssetDistributed priceadjusted by theterms of theevent

Cum price - Ex priceof parent security

is greaterthan orequal to 5%.

Spin-offSpun-off
traded on
the ex-dateSpin-offSpun-off
NOT tradedon the exdate(creation of
a 'detached'security)-

EndOfDayNOS(t-1)

Theo-ex price taking into
account the terms of the
event

Stock

Stock with
New Shares
Not EntitledtoForthcoming
Dividend-

EndOfDayNOS(t-1)
adjusted to take into
account the Stock

Theo-ex price taking into
account the terms of the
event

CASH

Fixed

EndOfDayNOS(t-1) ofparent security adjusted
by the terms of the stock- [minus]
Forthcoming
Gross Dividend- [minus]
Forthcoming Gross
Dividend

Stock

Distributionof AnotherType ofAsset (bond,warrant,
preferred,
etc.)

-

EndOfDayNOS(t-1)

Theo-ex price taking into
account the terms of the
event

OTHER ASSET
DISTRIBUTED

TradedEndOfDayNOS(t-1) ofparent security adjusted
by the terms of the stock

Other AssetDistributed or
NULL

Other AssetDistributed

Stock

Distributionof New
Underlying
Shares with
Warrants
attached-

EndOfDayNOS(t-1)
adjusted to take into
account the Stock

Theo-ex price taking into
account the terms of the
event

OTHER ASSETATTACHED

TradedEndOfDayNOS(t-1) ofparent security adjusted
by the terms of the stock

Other Asset
Attached or
NULL

Other Asset
Attached-

Multiple corporate events happening on the same day use a combination of the above rules and can potentially result in several interim constituents
being created*In case of multiple corporate events, the field "EndOfDayNOS(t-1)" should be replaced by the "IntradayNOS" calculated during the previous event© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 96 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

APPENDIX XI: INDEX CORRECTION POLICY
If the impact of an error is below 50 basis points on the country index OR on the World/EM
Industry Group (or 50 basis points on the MSCI Frontier Markets region including the MSCIGCC Countries), no index re statement is made.
If the impact of the error is greater or equal to 50 basis points on the country index OR on
the World/EM Industry Group (or 50 basis points on the MSCI Frontier Markets region
including the MSCI GCC Countries), all of the indexes affected by 50 basis points or more arere stated.
In certain circumstances, such as errors in the list of constituents (i.e. a security missed), or if
MSCI finds that the error is significant enough to justify the revision of indexes impacted byless than 50 basis point (e.g. 1/3 of US prices wrong), MSCI reserves the right to correct
information even if the impact is lower than the 50 basis points correction threshold.
MSCI applies a 12 months correction period. Errors on historical values older than 12
months are in general not revised.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 97 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

APPENDIX XII: MSCI INDEXES WITH FAIR VALUE PRICINGThe MSCI Indexes with IDCo Fair Value Pricing and MSCI Indexes with ITG Fair Value Model
make it simpler for active mutual fund managers, pension plans and consultants to explain
artificial tracking error between a fund's fair value adjusted NAV and an MSCI index
calculated using local closing prices. The indexes are expected to serve as reference tools formarketing and reporting, internal reporting and fund evaluation and research.
MSCI Indexes with IDCo Fair Value Pricing and MSCI Indexes with ITG Fair Value Model arecalculated by adjusting the closing index level by the fair value return. The fair value returnfor an index on day t is calculated as follows:∑

where:
is the initial weight for security s in the index I on day t+1(known as of the close of t) or, equivalently, the rebalanced weight of the security s for
day t. The calculation details are provided in section 1.2.2

is the fair value return of security s on day t. It is
calculated as

is set towhen it is not available fromthe fair value data provider. WM/Reuters spot FX rates are used in the calculation.
The Fair Value Index Level is then derived as following:

The same fair value return adjustment is used for price, net and gross total return index
series.
MSCI Fair Value Indexes with IDCo Fair Value Pricing and MSCI Indexes with ITG Fair Value
Model are calculated using fair value adjustment factors as of the close of the New York
Stock Exchange.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 98 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

MSCI INDEX CALCULATION METHODOLOGY BOOK TRACKED
CHANGESThe following section has been updated since January 2008.

2008
February:








Daily Hedged Indexes-

Change in the wording to clarify the hedged indexes calculation methodology (3.2.1
and 3.2.2)-

Update of the Daily Hedged Index example (3.2.5)

Appendix VI: Withholding Tax Rates-

Addition of Frontier Markets-

Removal of Venezuela

Appendix VII: Closing Prices Policy-

Addition of Frontier Markets-

Removal of Venezuela

Appendix VIII: Country Composition of MSCI Regional Indexes-

Addition of Frontier Markets countries-

Addition of 3 regions (GCC countries, Arabian Markets, Frontier Markets)

March:


Appendix VII: Closing Prices Policy-

Change in the closing price description for Croatia-

Addition of Dubai International Financial Exchange for United Arab Emirates

April:


Appendix VII: Closing Prices Policy© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 99 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015-

Change in the closing price description for Croatia-

Addition of Dubai International Financial Exchange for United Arab EmiratesMay:Appendix VII: Closing Prices Policy-

Change in the closing price description for Israel (Domestic).

-

Change in the Closing price available time (local) of Bahrain market-

Change in the Closing price used, price description and available time for HK.

July:


Appendix II: Security level information: Annualized Traded Value Ratio (ATVR) andAnnual Traded Value-

New section

September:Appendix VII: Closing Prices Policy-

Closing prices available at 5:30pm local time for Norway (Oslo Stock Exchange).

-

Include Serbia and Belgrade Stock Exchange trading information.

November:

Appendix VI: Withholding Taxes Rates-



Addition of Lithuania and Serbia

Appendix VII: Closing Prices Policy-

Closing price availability for Greece updated to be 5:20pm local time.

-

Closing price used for Serbia market updated to be VWAP.

-

Closing price used for Chile market updated to be Official Closing Price.

Appendix VIII: Country Composition of MSCI Regional Indexes-

Addition of Lithuania and Serbia.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 100 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015-

Updates for Jordan

December:Appendix VII: Closing Prices Policy-

Closing price description of Thailand includes explanation of applying random
auction call method to both main board and foreign board of stock exchange ofThailand.

-Price used for The Bombay Stock Exchange update to be WAP, description is also
updated accordingly.

-

Closing price description of The National Stock Exchange of India has been
confirmed to be Volume Weighted Average Price.

-

Closing price used and description for Pakistan will take last available ASK price forthose securities that do not report one or more trades on the Karachi Stock
Exchange for the calculation date.

-

Include coverage of Botswana, Ghana, Jamaica and Trinidad and Tobago.

-

Closing price availability time change of Israel market

Appendix VIII: Country Composition of MSCI Regional Indexes-

Updates for Pakistan

2009
February:Section 2: MSCI Daily Total Return (DTR) Index Methodology-

Country Exceptions
-

Update on Russian dividends treatment (2.3.6)

Taxes on Dividends
Change in the wording to clarify the dividend taxes (2.3.7)

Addition of Australian Dividends as an exception (2.3.7.2.1)

Appendix VI: Withholding Tax Rates-

Addition of Botswana, Ghana, Jamaica and Trinidad and Tobago© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 101 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015-

Updates for China on B shares and H shares, Estonia, Germany, Greece, Korea, andPhilippines

March:


Appendix VI: Withholding Tax Rates-

Updates for Kazakhstan and Lithuania

April


Appendix VII: Closing Prices Policy-

Update close price definition and description of Trinidad and Tobago

May:




Section 1: MSCI Price Index Methodology-

Reordering of chapters-

Addition of example of index calculation using contribution method-

Addition of chapter ‘Note on Index Calculation in Local Currency’-

Addition of chapter ‘Conversion of indexes into Another Currency’

Section 2: MSCI Daily Total Return (DTR) Index Methodology-

2.2.3 dividends resulting in a reinvestment only

Appendix V: Singapore and Singapore Free Indexes-Section added. Information was previously part of Frequently Asked Questions
Appendix

Appendix VI: Withholding Tax Rates-



Change in paragraph related to optional dividend

Updates for China Red Chip and Kuwait

Appendix VII: Closing Prices Policy-

Closing price used for Jamaica updated to be Average Price-

Closing price used for Pakistan updated to be Official Close© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 102 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015



Additional closing price used for Kazakhstan updated to be closing price of
Kazakhstan (UK listed Depository Receipts) and following UK closing price policy.

Appendix VIII: Country composition of MSCI Regional Indexes-

Update for Argentina-

Update for Pakistan-

Update for Trinidad and Tobago

Frequently Asked Questions-

Section removed: Removal of information related to Israel Domestic and Israel NonDomestic-

Information related to Singapore and Singapore Free Indexes moved to Appendix V.

July:


Appendix VII: Closing Prices Policy-

Closing price used for UAE, International Financial Exchange, updated to be Official
Close Price-

Closing price used for Czech Republic updated to be Official Close Price.

-

Update closing prices availability for the Belgium, Netherlands, France and Portugal.

-

Update close price definition and description of USA (NASDAQ Global Market,
NASDAQ Global Select Market)-

Additional column of market identifier code (MIC) is added.

-

Closing price description update of ADR from Argentina, Colombia, Israel and Peru.

-

Bloomberg country codes for the following countries have been updated.
(Argentina, Brazil, Canada, Chile, Columbia, Czech Republic, Egypt, Kazakhstan (UKlisted Depository Receipts), Korea, Pakistan, Russia (UK listed Depository Receipts),
Spain, UAE, USA, Vietnam)

September:Appendix VII: Closing Prices Policy-

MIC update for Oslo Stock Exchange and Taiwan Stock Exchange.

© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 103 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

November:

MSCI Equity Indexes-Section 1 and section 2
-







-

Net Daily Today Return-

Updates for Net Daily Total Return (2.2)-

Withholding Tax-

Country of incorporation is used to determine the relevant dividend withholding tax
rate (2.3.7.2)

Section 3: Alternative Index Calculation-

Section renamed Gross Domestic Product (GDP) Weighted Indexes-

Removal of Daily Hedged Indexes chapter

Appendix I: MSCI GCC Country Indexes: Saturday/Sunday Index Calculation
Removal of the note related to the use of Index Inclusion Factor which is not
relevant for GCC Countries.

Appendix III: Exchange Rates-



Addition of note for China A indexes related to the use of the Index Inclusion Factor

Section 2

Addition of CNY as a currency indexes are provided in.

Details added related to treatment in special circumstances and if WM/Reuters
does not provide rates.

Appendix VI: Withholding Tax Rates-

Updates for withholding tax rates based upon country of incorporation

2010
January:Appendix VI: Withholding Tax Rates-

Updates for Lithuania and Spain© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 104 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

February:


MSCI Equity Indexes-

Addition of BRL, HKD, INR, RUB and SGD as currencies indexes are provided in-

Addition of a note related to the treatment of index ruptures

Appendix VII: Closing Prices Policy-Update for the change of closing price for Saudi Arabia

Appendix VIII: Country Composition of MSCI Selected Regional Indexes-

Addition of Bangladesh-

Changes for Israel to reflect its move from EM to DM coverageMay:Section 2: MSCI Daily Total Return (DTR) Index Methodology-

2.3.3 Correction


-







Addition of precision on timing for implementation of late dividends (2.3.6)

Addition of precision on Korean and Russian late dividends (2.3.6)

Addition of precision on corporate Events treatment

Appendix VII: Closing Prices Policy-

Removal of pricing information for Israel non Domestic-

Closing price used for Pakistan updated to be Official Close

Appendix VIII: Country Composition of MSCI Selected Regional Indexes-

2.3.6 Country Exceptions

Appendix I: Saturday/Sunday Index Calculation-Addition of precision in correction implementation timing

Changes for Bangladesh to reflect its inclusion into the FM regional index.

Appendix IX: Real Time Indexes-

New section© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 105 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

June:


Appendix VII: Closing Prices Policy-Closing price used for Greece updated to be Auction Close

Appendix X: Index Calculation Methodology Using Index Divisors-

New section

August:Appendix VI: Withholding Tax Rates-

Addition of Bosnia and Herzegovina-

Update for Slovenia

Appendix VII: Closing Prices Policy-

Addition of Bangladesh-

Addition of Bosnia and Herzegovina-

Closing price used for Greece updated-

Closing price used for Czech Republic updated

Appendix VIII: Country Composition of MSCI Selected Regional Indexes-

Addition of Bosnia and Herzegovina

September:Section 2: MSCI Daily Total Return (DTR) Index Methodology-

2.3.3 CorrectionAddition of correction policy for MSCI Frontier Markets Indexes

Appendix VII: Closing Prices Policy-

Closing price used for Nigeria updated to Official Close-

Removal of Saudi Arabia

Appendix VIII: Country Composition of MSCI Selected Regional Indexes© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 106 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015-

Replaced index GCC COUNTRIES by index GCC COUNTRIES ex SA-

Replaced index ARABIAN MARKETS by index ARABIAN MARKETS ex SA-

Removal of Saudi Arabia

October:

Appendix I: Sunday Index Calculation-



Discontinuation of Saturday products

Appendix VII: Closing Prices Policy-

Closing price used for Qatar updated to Last traded priceNovember:

MSCI Equity Indexes-Addition of KRW as a currency indexes are provided in.

Appendix VII: Closing Prices Policy-

Removal of closing price information for Russian Trading System (RTS)2011
January:Appendix VI: Withholding Tax Rates-



Update for Portugal

Appendix VII: Closing Prices Policy-

Closing price used for Slovenia updated to Official Close

February:Section 3: Gross Domestic Products (GDP) Weighted Indexes-Section removed.

Appendix VI: Withholding Tax Rates© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 107 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Update for Greece

Appendix VII: Closing Prices Policy-

Closing price used for Ghana updated to VWAP-

Closing price availability time change for Prague and Warsaw Stock Exchanges-

Addition of Zimbabwe-

Addition of a note related to market closure

March:


Section 2.2.4: Dividends Resulting in a Reinvestment or in a Price Adjustment-

Update for Special/Extra Dividend

Appendix VI: Withholding Tax Rates-

Update for ChileMay:

Section 2 : Capital Repayments Resulting in a Reinvestment or in a Price Adjustment-



Appendix VI: Withholding Tax Rates-

Update for Greece-

Addition of Curacao-

Addition of Faroe Islands-

Addition of Zimbabwe-

Change in the note related to China withholding tax

Appendix VII: Closing Prices Policy-Update for regular and extraordinary capital repayments

Change of Reuters Code for Jamaica

Appendix VIII: Country Composition of MSCI Selected Regional Indexes-

Addition of Zimbabwe-

Update for Trinidad and Tobago© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 108 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

July:


Appendix VII: Closing Prices Policy-Change in closing price definition for Trinidad and Tobago

Appendix VI: Withholding Tax Rates-

Update for Botswana

August:

Section 2.2.5: Dividends Resulting in a Price Adjustment Only-

Update of Stock Dividend (stock bonus/gratis issue)

Section 2.3.7.2.1: Country Exception-

Addition of Taiwanese Stock Dividends

October:

Appendix VI: Withholding Tax Rates-

Addition of a note related to Malaysia withholding tax-

Addition of a note related to United Kingdom withholding tax

November:

Appendix VII: Closing Prices Policy-

Addition of special note for Japanese securities-

Closing price availability time change for Chile, Colombia, Estonia, India, Japan,
Jordan, Lithuania, Mauritius, Nigeria, Philippines, Portugal and Ukraine.

-

Addition of Ukrainian Exchange (Ukraine)-

Addition of Banja Luka Exchange (Bosnia and Herzegovina)© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 109 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

2012
January:Appendix VI: Withholding Tax Rates-

Update for Chile, Denmark, Finland, France, Greece, Israel, Italy, Portugal and Spain

February:Appendix VI: Withholding Tax Rates-

Update for Finland

March:


Appendix VI: Withholding Tax Rates-

Removal of the note related to Italy withholding tax-

Update for Croatia

Appendix VII: Closing Prices Policy-

Change in closing price definition for Turkey

April:


Appendix VI: Withholding Tax Rates-



Update for South Africa

Appendix VII: Closing Prices Policy-

Correction of the Market Identifier Code (MIC) for Ukrainian ExchangeMay:Section 2: MSCI Daily Total Return (DTR) Index Methodology-

2.2.1 Timing of reinvestment


Details added related to reinvestment when the security does not trade

Appendix VI: Withholding Tax Rates© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 110 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Appendix IX: MSCI Real Time Indexes-Addition of a note related to Japan withholding tax

Details added related to reinvestment when the security does not trade

Appendix VII: Closing Prices Policy-

Change in closing price definition for Kuwait-

Change in closing price availability for Indonesia

June:


Appendix VII: Closing Prices Policy-Appendix I: Saturday/Sunday Index Calculation-Addition of Saudi Arabia

Reintroduction of Saturday Calculation information

Appendix VI: Withholding Tax Rates-

Update for Kazakhstan

August:

Section 2.2.3: Dividends Resulting in a Reinvestment Only-

Update of Regular Capital Repayment

Section 2.3.6: Country Exceptions-

Update of the dividend reinvestment treatment in Korea and Russia

November:

Section 2.2.3: Dividends Resulting in a Reinvestment Only-Section 2.3.6: Country Exceptions-

Update of Regular Capital Repayment

Addition of Taiwanese Capital Repayments

Appendix VI: Withholding Tax Rates© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 111 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015-

Update for Japan-

Removal of the note related to Japan withholding tax

December:

Appendix VII: Closing Prices Policy-

Change in closing price definition, closing prices availability time, Exchange andBloomberg Code for Czech Republic.

2013
January:Appendix VII: Closing Prices Policy-

Change in closing price definition for Indonesia.

-

Change in closing price definition for Abu Dhabi Securities Exchange.

Appendix VI: Withholding Tax Rates-

Update for Chile-

Update for Czech Republic-

Update for Portugal-

Update for Slovenia

February:Appendix VI: Withholding Tax Rates-

Update for Trinidad and TobagoMay:

Appendix IX: MSCI Real Time Indexes-Update of Intraday Price Adjustment Factor announcements

Section 2.3.6: Country Exceptions© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 112 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

Appendix VI: Withholding Tax Rates-



Update of the dividend reinvestment treatment in Russia

Addition of Malta

Appendix VII: Closing Prices Policy-

Change in Exchange Name for Egypt-

Change in closing price Description for Egypt

August:

Section 2.3.7.2.1: Country Exceptions-

Appendix I: Sunday Index Calculation-Addition of Thailand Cash Dividends

Discontinuation of Saturday products

Appendix VI: Withholding Tax Rates-

Addition of a note related to Taiwan REIT withholding tax-

Addition of a note related to Japan withholding tax

September:

Appendix VII: Closing Prices Policy-

Change in closing price Description for Philippines-

Change in closing prices Availability for Philippines

Appendix VI: Withholding Tax Rates-

Update for Morocco

October:

Appendix VI: Withholding Tax Rates-

Update for Argentina-

Addition of Palestine© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 113 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

November:Appendix VI: Withholding Tax Rates-

Update for Japan-

Removal of the note related to Japan withholding tax-

Update for Portugal

Appendix VIII: Country Composition of MSCI Selected Regional Indexes-

Replaced index GCC COUNTRIES ex SA by index GCC COUNTRIES-

Replaced index ARABIAN MARKETS ex SA by index ARABIAN MARKETS-

Update for Greece and Morocco-

Addition of Palestine

2014
January:Appendix VI: Withholding Tax Rates-

Update for Slovenia, Mexico, Greece and Bosnia and Herzegovina

February:Section 2.2.2: Reinvestment Rules
-







Update in the definitions

Section 2.2.3: Dividends Resulting in a Reinvestment Only-

Update for Regular Cash Dividend-

Update for Regular Capital Repayment

Section 2.2.4: Dividends Resulting in a Reinvestment or in a Price Adjustment-

Update for Special/Extra Dividend-

Change in Special Dividend to Non-Domestic Shareholders

Section 2.2.5: Dividends Resulting in a Reinvestment or in a Price Adjustment© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015



Update for Extraordinary Capital Repayment

Section 2.3.6: Country Exceptions-

Addition of Singapore-

Updates for Korea

Section 2.3.7.1: Tax Credit-

Update of footnote 3-

Appendix VI: Withholding Tax Rates-

Updates for Malaysia

March:


Appendix VI: Withholding Tax Rates-

Updates for Mexico

April:


Appendix VII: Closing Prices Policy-

Change in closing price definition for Saudi Arabia-

Change in closing prices availability for Saudi Arabia-

Change in closing price definition for Shenzhen Stock Exchange-

Clarification in closing price definition for Greece-

Change in closing price definition for Qatar-

Change in closing price definition for Australia-

Change in closing prices availability for Australia

Appendix VI: Withholding Tax Rates-

Update for Faroe Islands© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

May:




Appendix VII: Closing Prices Policy-

Updated Exchange name from Dubai Stock Exchange to Dubai Financial Market-

Updated Exchange name from Dubai International Financial Exchange to NASDAQ
Dubai

-

Updated Exchange name from Doha Securities Market to Qatar Exchange-

Change in closing prices availability for NASDAQ Dubai-

Change in closing price definition for Dubai Financial Market-

Change in closing price definition for NASDAQ Dubai

Appendix XII: MSCI Indexes with IDCo Fair Value Pricing-

Addition of Appendix XII: MSCI Indexes with IDCo Fair Value Pricing

July:


Appendix VI: Withholding Tax Rates-

Update for Italy and Egypt-

Addition of Burkina Faso, Ivory Coast, Senegal and Togo

August:

Section 2.3.6: Country Exceptions-

Update for Russia

October:

Appendix VII: Closing Prices Policy-

Correction of the Market Identifier Code (MIC) for Moscow Interbank Currency
Exchange (MICEX) and NASDAQ Global Market© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

December:

Appendix VI: Withholding Tax Rates-

Update for Serbia and Togo

2015
January:Appendix VI: Withholding Tax Rates-

Update for Spain and Tunisia

February:Section 2.3.7.2.1 Country Exceptions-



United Kingdom Cash Dividends

Appendix VI: Withholding Tax Rates-

Update for United Kingdom

April:


Appendix VIII: Country composition of MSCI Regional Indexes-

Update for Qatar-

Update for United Arab EmiratesMay:

Section 2.3.6 Country Exceptions-

Change in dividend reinvestment treatment for Russian DRs© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

June:




Appendix VII: Closing Prices Policy-

Change in closing prices availability for NASDAQ Dubai-

Change in closing prices availability for Dubai Financial Market

Appendix XII: MSCI Indexes with Fair Value Pricing-

Change in Appendix name from Appendix XII: MSCI Indexes with IDCo Fair Value
Pricing to Appendix XII: MSCI Indexes with Fair Value Pricing-

Addition of MSCI Indexes with ITG Fair Value Model

July:


Appendix VI: Withholding Tax Rates-

Update for Pakistan-

Update for Spain© 2015 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI.COM | PAGE 118 OF 120

MSCI INDEX CALCULATION METHODOLOGY | AUGUST 2015

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