MSCI launches MSCI EM Beyond BRIC Index
MSCI Inc, a leading provider of investment decision support tools worldwide, has launched a new Emerging Markets index - the MSCI EM Beyond BRIC Index - apparently after the four countries lose attractiveness.
The index, a subset of the well known and widely used MSCI Emerging Markets Index, is comprised of 17 countries and excludes the BRIC countries - Brazil, Russia, India and China - which currently represent over 40 per cent of the MSCI Emerging Markets Index.
"The BRIC countries have been recognised over the past few years as key drivers of economic growth within the emerging markets and many institutional investors already have exposure to those countries within their portfolios," said Deborah Yang, Managing Director and Head of the MSCI Index Business in Europe, the Middle East, Africa and India. "We have launched the MSCI EM Beyond BRIC Index in response to client demand and believe it offers a new way to track and evaluate the emerging markets opportunity set for those wishing to invest in countries outside the BRIC region."
To help diversify the representation across the 17 countries in the index, the weights of larger Emerging Market countries such as Taiwan and Korea are capped on a quarterly basis at 15 per cent, giving greater prominence to smaller emerging market countries including Thailand, Malaysia and Indonesia. Thailandâ€™s weight is 6.11 per cent.