Insights from MSCI May 2024 Index Review
On May 14th, we communicated that 187 securities will be added and 326 securities will be removed from the MSCI ACWI Investable Market Index (IMI), MSCI’s flagship global equityindex. The MSCI ACWI IMI is designed to represent the performance of the investment universe of large/mid and small cap companies across developed and emerging markets. It
covers approximately 99% of the global equity investment opportunity by free float-adjusted market capitalization.

Further Granularity
Our methodology applies a building block approach across geographies and company

In the MSCI Emerging Markets Index, most of the additions and deletions are due tosizes. This enables investors to assess how the global investable opportunity has

size segment migrations.

changed at a more granular level. In this rebalance, there were more additions andImpact on the Indexes

deletions in emerging markets than in developed markets for large/mid cap indexes.
MSCI WorldMSCI World IMI
68 additions
148 deletions

10 additions
45 deletions

MSCI World Small Cap

To assess the impact of these changes on the indexes, we calculate one-way index
turnover to measure the percentage change in the composition of the index. Thisindex turnover corresponds to the proportion of assets that should be bought in aportfolio replicating the index. As a portfolio has a fixed dollar amount, the amountof assets that should be bought exactly corresponds to the amount of assets thatshould be sold:

109 additions

MSCI ACWI IMI

154 deletions

187 additions

MSCI EM

326 deletions

MSCI EM IMI
119 additions
178 deletions

MSCI World
IMI turnover:

MSCI EM
IMI turnover:

0.6%

0.6%

1.4%

32 additions
76 deletions

MSCI EM Small Cap
124 additions

Index turnover is influenced by the number and size of securities added or deleted as

139 deletions

well as other changes impacting security index market capitalization, such as free float

In the MSCI World Index, most of the turnover is driven by size segment migrations,particularly from downward migrations in the MSCI USA and MSCI Japan Indexes. Sizesegment migrations are generally triggered by changes in the full company market
capitalization of a company relative to the required size threshold.

MSCI ACWIIMI turnover:update.

Additional Highlights•Starting from the May 2024 Index Review, MSCI will no longer apply the special
treatment for the MSCI Egypt Indexes announced on May 08, 2023 and for the MSCI
Kenya Indexes announced on August 08, 2022. Based on the feedback from market
participants, liquidity in the Egyptian and Kenyan foreign exchange markets and theability of foreign investors to repatriate capital from the Egyptian and Kenyan equity
markets have improved.
MSCI will continue to not implement changes as part of this index review for any
securities classified in Bangladesh for the MSCI Bangladesh Indexes or impacted
composite indexes in light of currently observed market accessibility issues.

•As announced in November 2023 Jordan met the Foreign Listing Materiality
Requirement. Hence, foreign listings will become eligible for the MSCI Jordan
Indexes as part of this index Review. Jordan is currently classified as FrontierMarket. Also, foreign listings will become eligible for the MSCI Brazil and the MSCI
Sweden Indexes starting from the August 2024 and November 2024 Index Reviews,
respectively.

What happens next?
June 3rd, 2024 – Effective date of the index changes.
While the index changes were announced on May 14th, they will be implemented for themarket cap indexes by June 3rd, 2024. MSCI’s standard practice is to announce the resultsof the review and provide sufficient lead time before implementation, allowing the market
and market participants to adjust to the information.

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