MSCI May13 GIMIMethod1

IndexMethodology
MSCIGlobalInvestableMarketIndices
Methodology
IndexConstructionObjectives,GuidingPrinciplesandMethodologyforthe
MSCIGlobalInvestableMarketIndices

May2013
msci.com

IndexMethodology
MSCIGlobalInvestableMarketIndicesMethodology
May2013
Contents
OutlineoftheMethodologyBook....................................................................................9
Section1:IntroductiontotheMSCIGlobalInvestableMarketIndices.......................10
Section2:ConstructingtheMSCIGlobalInvestableMarketIndices...........................12
2.1. DefiningtheEquityUniverse.....................................................................12
2.1.1. IdentifyingEligibleEquitySecurities..........................................................12
2.1.2. CountryClassificationofEligibleSecurities..............................................13
2.2. DeterminingtheMarketInvestableEquityUniverses............................13
2.2.1. EquityUniverseMinimumSizeRequirement..........................................14
2.2.2. Equity Universe Minimum FloatAdjusted Market Capitalization
Requirement............................................................................................................15
2.2.3. DMandEMMinimumLiquidityRequirement........................................15
2.2.4. GlobalMinimumForeignInclusionFactorRequirement........................16
2.2.5. MinimumLengthofTradingRequirement..............................................17
2.2.6. MinimumForeignRoomRequirement....................................................17
2.3. DefiningMarketCapitalizationSizeSegmentsforEachMarket............18
2.3.1. DefiningtheMarketCoverageTargetRangeforEachSizeSegment....19
2.3.2. DeterminingtheGlobalMinimumSizeRangeforEachSizeSegment..20
2.3.2.1.DefiningtheGlobalMinimumSizeReference.........................................20
2.3.3. Determining the Segment Number of Companies and Associated
MarketSizeSegmentCutoffs.................................................................................21
2.3.4. AssigningCompaniestotheSizeSegments.............................................23
2.3.5. Applying Final SizeSegment Investability Requirements and Index
ContinuityRules.......................................................................................................23
2.3.5.1.MinimumFreeFloatMarketCapitalizationRequirement......................23
2.3.5.2.MinimumLiquidityRequirementfortheStandardIndices....................24
2.3.5.3.MinimumForeignRoomRequirement....................................................25
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2013MSCIInc.Allrightsreserved.
Pleaserefertothedisclaimerattheendofthisdocument 2

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2.4. IndexContinuityRulesfortheStandardIndices......................................25
2.5. CreatingStyleIndiceswithinEachSizeSegment.....................................26
2.6. ClassifyingSecuritiesundertheGlobalIndustryClassificationStandard26
2.7. CreatingSizeSegmentIndices:Examples................................................28
2.7.1. DeterminingMarketSizeSegmentCutoffsandAssigningCompaniesto
theSizeSegments...................................................................................................28
Section3:MaintainingtheMSCIGlobalInvestableMarketIndices............................30
3.1. SemiAnnualIndexReviewsinMayandNovember...............................30
3.1.1. UpdatingtheEquityUniverse...................................................................31
3.1.2. UpdatingtheMarketInvestableEquityUniverses..................................31
3.1.2.1.UpdatingtheEquityUniverseMinimumSizeRequirement...................31
3.1.2.2.Updating the Equity Universe Minimum Free FloatAdjusted Market
Capitalization...........................................................................................................32
3.1.2.3.MinimumLiquidityRequirementforExistingConstituents....................32
3.1.2.4.GlobalMinimumForeignInclusionFactorRequirement........................33
3.1.2.5.MinimumForeignRoomRequirement....................................................33
3.1.3. RecalculatingtheGlobalMinimumSizeReferencesandGlobalMinimum
SizeRanges ...............................................................................................................33
3.1.4. ReassessingtheSegmentNumberofCompaniesandtheMarketSize
SegmentCutoffs......................................................................................................33
3.1.4.1.DeterminingInitialSegmentNumberofCompanies..............................34
3.1.4.2.ChangesintheSegmentNumberofCompanies.....................................34
3.1.5. AssigningCompaniestoAppropriateSizeSegments..............................36
3.1.5.1.Using Buffer Zones to Manage the Migration of Companies between
SizeSegmentIndices...............................................................................................37
3.1.6. Assessing Conformity with Final SizeSegment Investability
Requirements..........................................................................................................38
3.1.6.1.ForNewConstituents................................................................................38
3.1.6.2.ForExistingConstituents............................................................................38

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3.1.7. SemiAnnualIndexReviewofChangesinForeignInclusionFactors(FIFs)
40
3.1.8. SemiAnnualIndexReviewofChangesinNumberofShares(NOS)......40
3.1.9. DateofDataUsedforSemiAnnualIndexReview..................................40
3.2. QuarterlyIndexReviewsinFebruaryandAugust...................................42
3.2.1. QuarterlyIndexReviewofSizeSegmentMigrations..............................42
3.2.1.1.Updating the Global Minimum Size References and Global Minimum
SizeRanges 42
3.2.1.2.ReassessingtheMarketSizeSegmentCutoffs........................................42
3.2.1.3.AssigningCompaniestoAppropriateSizeSegments..............................42
3.2.1.4.Assessing Conformity with Final SizeSegment Investability
Requirements..........................................................................................................43
3.2.2. Quarterly Index Review of Addition of Companies Currently not
ConstituentsoftheInvestableMarketIndices.....................................................45
3.2.3. QuarterlyIndexReviewofChangesinFIFs..............................................46
3.2.4. QuarterlyIndexReviewofChangesinNumberofShares(NOS)...........47
3.2.5. DateofDataUsedforQuarterlyIndexReview........................................47
3.3. OngoingEventRelatedChanges...............................................................48
3.3.1. Determining the Interim Market SizeSegment Cutoffs for Daily
Maintenance............................................................................................................49
3.3.2. UpdatingtheSegmentNumberofCompanies.......................................49
3.3.3. CorporateEventsAffectingExistingIndexConstituents.........................50
3.3.3.1.ChangesinFIF,NumberofSharesorIndustryClassificationforExisting
Constituents...............................................................................................................50
3.3.3.2.Changes in Size or Style Segment Classification as a Result of a Large
CorporateEvent......................................................................................................51
3.3.3.3.EarlyInclusionsofNonIndexConstituents..............................................52
3.3.3.4.EarlyDeletionsofExistingConstituents...................................................53
3.3.4. CorporateEventsAffectingNonIndexConstituents..............................54
3.3.4.1.IPOsandOtherEarlyInclusions.................................................................54

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3.3.5. CorporateEventsAffectingtheIndexReview.........................................55
3.4. AnnouncementPolicy................................................................................56
3.4.1. SemiAnnualIndexReview........................................................................56
3.4.2. QuarterlyIndexReview.............................................................................56
3.4.3. OngoingEventRelatedChanges...............................................................56
3.4.3.1.ClientAnnouncements..............................................................................56
3.4.3.2.PublicAnnouncements..............................................................................58
3.4.4. IPOsandOtherEarlyInclusions.................................................................58
3.4.5. GlobalIndustryClassificationStandard(GICS).........................................58
Section4:MSCIAllCapIndices.......................................................................................60
4.1. ConstructingtheMSCIAllCapIndices......................................................60
4.1.1. MicroCapMaximumSizeRequirement..................................................60
4.1.2. MicroCapMinimumSizeRequirement...................................................61
4.1.3. MicroCapMinimumLiquidityRequirement...........................................61
4.1.4. GlobalMinimumForeignInclusionFactorRequirement........................61
4.1.5. MinimumLengthofTradingRequirement..............................................61
4.2. MaintainingtheMSCIAllCapIndices.......................................................62
4.2.1. SemiAnnualIndexReviewsinMayandNovember...............................62
4.2.1.1.UpdatingtheMicroCapMinimumSizeRequirement............................62
4.2.1.2.AssigningCompaniestotheMicroCapSizeSegment............................63
4.2.2. QuarterlyIndexReviewsofFebruaryandAugust...................................63
4.2.3. OngoingEventRelatedChanges...............................................................63
Section5:MSCIFrontierMarketsIndices......................................................................64
5.1. FrontierMarketsDefinition.......................................................................64
5.1.1. UpdatingMSCIFrontierMarketsIndexCoverage...................................64
5.1.2. StandaloneCountryIndices.......................................................................64

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5.2. MethodologyusedtoconstructandmaintaintheMSCIFrontierMarkets
Indices........................................................................................................................65
5.2.1. CategorizationofFrontierMarketsintoLargerandSmallerMarkets...66
5.2.1.1.Equity Universe Minimum FloatAdjusted Market Capitalization
Requirement............................................................................................................66
5.2.1.2.GlobalMinimumForeignInclusionFactorRequirement........................67
5.2.1.3.GlobalMinimumSizeReference...............................................................67
5.2.2. CategorizationofFrontierMarketsintoverylow,loworaverageliquidity
markets ..............................................................................................................68
5.2.3. FinalSizeSegmentInvestabilityRequirements.......................................69
5.2.4. IndexContinuityRules...............................................................................69
5.2.5. ImplementationofCorporateEvents.......................................................69
5.2.6. IPOsandOtherEarlyInclusions.................................................................69
Appendices .......................................................................................................................70
AppendixI:EquityMarketsandUniverse......................................................................71
EligibleMarkets(DevelopedMarkets)..................................................................71
EligibleMarkets(EmergingMarkets).....................................................................72
EligibleMarkets(FrontierMarkets).......................................................................73
EligibleClassesofSecurities(DevelopedMarkets)...............................................74
EligibleClassesofSecurities(DevelopedMarkets)...............................................74
EligibleClassesofSecurities(EmergingMarkets).................................................75
EligibleClassesofSecurities(FrontierMarkets)....................................................76
REITs ........................................................................................................................77
CanadianIncomeTrusts.........................................................................................77
AppendixII:MarketClassificationFramework..............................................................78
AppendixIII:CountryClassificationofSecurities...........................................................79
Generalframework.................................................................................................79
Othercases ...............................................................................................................80

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Countryspecificcases.............................................................................................80
ChangeofIncorporation.........................................................................................81
ReviewandMaintenance.......................................................................................82
CountryofCoverageofCompaniesnotEligibleforInclusionintheMSCIGlobal
InvestableMarketIndices.......................................................................................82
MSCIIneligibleSecurities........................................................................................83
AppendixIV:FreeFloatDefinitionandEstimationGuidelines.....................................84
DefiningandEstimatingFreeFloat........................................................................84
ClassificationofShareholderTypes.......................................................................85
SpecialCases............................................................................................................86
ForeignOwnershipLimits(FOLs)...........................................................................87
CalculationofFreeFloat.........................................................................................88
AssigningaFreeFloatAdjustmentFactor.............................................................89
CalculatingtheFreeFloatAdjustedMarketCapitalization.................................91
TreatmentofNonVotingDepositaryReceiptsinThailand.................................92
AppendixV:GlobalIndustryClassificationStandard(GICS).........................................95
Introduction...............................................................................................................95
GICSCompanyClassification..................................................................................97
AppendixVI:PriceSourceforSecurities.......................................................................103
Appendix VII: Policy Regarding Trading Suspensions and Market Closures During
IndexReviews ...........................................................................................................104
AppendixVIII:UpdatingtheGlobalMinimumSizeReferencesandRanges.............106
General Principles for Updating the Global Minimum Size References and
Ranges......................................................................................................................106
Appendix IX: Minimum MarketRelative Liquidity Requirements for the Standard
Index ..............................................................................................................................108
AppendixX:MSCIFrontierMarketsIndicesCountryClassification...........................109
AppendixXI:Transition..................................................................................................110

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ProvisionalIndices.................................................................................................111
Deriving the SizeSegment Indices at Initial Construction of the
ProvisionalIndices.......................................................................................111
PublicationofProvisionalIndices...............................................................111
ReflectingConstituentChangesintheStandardIndicesattheTransitionPoints
.....................................................................................................................112
IndexReviewsandTreatmentofOnGoingMarketEventsDuringtheTransition
Period .....................................................................................................................114
OngoingEventRelatedChanges................................................................114
May2007AnnualFullCountryIndexReviewoftheStandardIndicesand
SemiAnnualIndexReviewoftheSmallCapIndex..................................114
August2007QuarterlyIndexReview........................................................115
November2007SemiAnnualIndexReview............................................115
February2008QuarterlyIndexReview....................................................116
May2008SemiAnnualIndexReview.......................................................116
TransitioningOtherIndices...................................................................................116
GlobalValueandGrowthIndices..............................................................116
EuroandPanEuroIndices.........................................................................116
IndicesBasedontheStandardIndices......................................................117
GCCCountriesIndices.................................................................................117
SummaryTransitionTimeline..............................................................................118
AppendixXII:TransitionofMSCIChinaAIndex...........................................................120
AppendixXIII:MSCIDRIndices.....................................................................................123
ClientServiceInformationisAvailable24HoursaDay......................................127
NoticeandDisclaimer...........................................................................................127
AboutMSCI .............................................................................................................127

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OutlineoftheMethodologyBook

ThismethodologybookoutlinesMSCIsindexobjectivesanddetailsthemethodologyemployedtocreate
andmaintaintheMSCIGlobalInvestableMarketIndices.

Section 1 provides an introduction and background to the MSCI Global Investable Market Index family
includingtheobjectivesanddesignoftheindices.

Section 2 details the principles and the methodology used for index construction. This includes the
investabilityrequirementsandthesizesegmentationmethodologyusedinconstructingtheindices.

Section3describesthemaintenanceprinciplesemployedforreflectingtheevolutionofthemarketsina
timelyfashionwhileprovidingindexstabilityandcontrollingturnover.

Section4detailstheprinciplesandthemethodologyusedforMSCIAllCapIndicesconstruction.

Section 5 details the principles and the methodology used for MSCI Frontier Markets Indices
construction.

TheAppendicescontaindetailsonequitymarketcoverage,countryclassificationofsecurities,freefloat
definitionandestimation,andotherattributes.

ThisbookwaslastupdatedinMay2013.

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Section1:IntroductiontotheMSCIGlobalInvestable
MarketIndices

For over 35 years, MSCI has constructed the most widely used international equity indices for
institutional investors. The MSCI global equity indices have maintained their leading position because
theyhaveevolvedovertimetocontinuetoappropriatelyreflecttheinternationalinvestableopportunity
set of equities while addressing the changing and expanding investment interests of crossborder
investors.
MSCIs objective is to construct and maintain its global equity indices in such a way that they may
contributetotheinternationalinvestmentprocessbyservingas:

Relevantandaccurateperformancebenchmarks.
The basis for asset allocation and portfolio construction across geographic markets, sizesegments,
stylesegments,andsectors.
Effectiveresearchtools.
Thebasisforinvestmentvehicles.

Developments in international equity markets and investment management processes have led many
investorstodesireverybroadcoverageandsizesegmentationoftheinternationalequity markets.To
address these desires and continue to meet our index construction and maintenance objective, after a
thorough consultation with members of the international investment community, MSCI enhanced its
Standard Index methodology, by moving from a sampled multicap approach to an approach targeting
exhaustivecoveragewithnonoverlappingsizeandstylesegments.TheMSCIStandardandMSCISmall
Cap Indices, along with the other MSCI equity indices based on them, transitioned to the Global
Investable Market Indices methodology described in this methodology book. The transition was
completedattheendofMay2008.

The Enhanced MSCI Standard Indices are composed of the MSCI Large Cap and Mid Cap Indices. The
MSCI Global Small Cap Index transitioned to the MSCI Small Cap Index resulting from the Global
Investable Market Indices methodology, and contains no overlap with constituents of the transitioned
MSCIStandardIndices.Inaddition,undertheMSCIGlobalInvestableMarketIndicesmethodology,there
are new Small Cap Indices covering Emerging Markets countries. There are also new MSCI Value and
Growth Indices constructed from the Small Cap Indices for both Emerging and Developed Markets.
Together, the relevant MSCI Large Cap, Mid Cap and Small Cap Indices make up the MSCI Investable
MarketIndexforeachcountry,composite,sector,andstyleindexthatMSCIoffers.

Basedontransparentandobjectiverules,theGlobalInvestableMarketIndicesareintendedtoprovide:

Exhaustive coverage of the investable opportunity set with nonoverlapping size and style
segmentation.
Astrongemphasisoninvestabilityandreplicabilityoftheindicesthroughtheuseofsizeandliquidity
screens.

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Size segmentation designed to achieve an effective balance between the objectives of global size
integrityandcountrydiversification.
Aninnovativemaintenancemethodologythatprovidesasuperiorbalancebetweenindexstabilityand
reflectingchangesintheopportunitysetinatimelyway.
Acompleteandconsistentindexfamily,withStandard,LargeCap,MidCap,SmallCap,andInvestable
MarketIndices.

In addition to the innovations listed above, the Global Investable Market Indices methodology retains
manyofthefeaturesoftheoriginalmethodology,suchas:

Theuseofabuildingblockapproachtopermitthecreationandcalculationofmeaningfulcomposites.
ThecreationofsectorandindustryindicesusingtheGlobalIndustryClassificationStandard(GICS).
The creation of Value and Growth Indices using the current MSCI Global Value and Growth
Methodology.
Minimum free float requirements for eligibility and free floatadjusted capitalization weighting to
appropriately reflect the size of each investment opportunity and facilitate the replicability of the
Indices.
Timelyandconsistenttreatmentofcorporateeventsandsynchronizedrebalancings,globally.

InNovember2010MSCIalsointroducedaMicroCapSizeSegmentfordevelopedmarketsaswellasthe
MSCI World All Cap Index consisting of the Large, Mid, Small and Micro Cap SizeSegments in order to
furtherbroadenthecoverageoftheinternationalequitymarkets.


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Section 2: Constructing the MSCI Global Investable

MarketIndices

ConstructingtheMSCIGlobalInvestableMarketIndicesinvolvesthefollowingsteps:

DefiningtheEquityUniverse.
DeterminingtheMarketInvestableEquityUniverseforeachmarket.
Determiningmarketcapitalizationsizesegmentsforeachmarket.
ApplyingIndexContinuityRulesfortheStandardIndex.
Creatingstylesegmentswithineachsizesegmentwithineachmarket.
ClassifyingsecuritiesundertheGlobalIndustryClassificationStandard(GICS).

Eachofthesestepsisdescribedindetailbelow.
2.1. DefiningtheEquityUniverse

TheEquityUniverseisdefinedby:

Identifyingeligibleequitysecurities,and
Classifyingtheseeligibleequitysecuritiesintotheappropriatecountry.
2.1.1. IdentifyingEligibleEquitySecurities

All listed equity securities, including Real Estate Investment Trusts (REITs) and certain income trusts in
Canada are eligible for inclusion in the Equity Universe. Conversely, mutual funds (other than Business
DevelopmentCompaniesintheU.S.),ETFs,equityderivatives,limitedpartnerships,andmostinvestment
trustsarenoteligibleforinclusionintheEquityUniverse.

Preferredsharesthatexhibitcharacteristicsofequitysecuritiesaregenerallyeligible.Asthedefinitionof
the preferred shares may vary from country to country or even from one company to another, MSCI
analysesthistypeofsecurityonacasebycasebasis.Thekeycriterionforapreferredsharetobeeligible
isthatitshouldnothavefeaturesthatmakeitresembleandbehavelikeafixedincomesecurity,such
astheentitlementtoafixeddividendand/or,incaseofliquidation,anentitlementtoacompanysnet
assets which is limited to the par value of the preferred share. On the other hand, preferred shares
whose only difference compared to common shares is a limited voting power are typically eligible for
inclusionintheEquityUniverse.

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2.1.2. CountryClassificationofEligibleSecurities
Eachcompanyanditssecurities(i.e.,shareclasses)isclassifiedinoneandonlyonecountry,whichallows
foradistinctivesortingofeachcompanybyitsrespectivecountry.

The DM Equity Universe consists of all securities in the Equity Universe classified into a Developed
Market.

Please refer to Appendix I: Equity Markets and Universe and Appendix III: Country Classification of
Securitiesforfurtherdetails.
2.2. DeterminingtheMarketInvestableEquityUniverses

AMarketInvestableEquityUniverseforamarketisderivedbyapplyinginvestabilityscreenstoindividual
companiesandsecuritiesintheEquityUniversethatareclassifiedinthatmarket.Amarketisequivalent
toasinglecountry,exceptinDMEurope,whereallDMcountriesinEuropeareaggregatedintoasingle
marketforindexconstructionpurposes.Subsequently,individualDMEuropecountryindiceswithinthe
MSCI Europe Index are derived from the constituents of the MSCI Europe Index under the Global
InvestableMarketIndicesmethodology.

TheGlobalInvestableEquityUniverseistheaggregationofallMarketInvestableEquity Universes.The
DM Investable Equity Universe is the aggregation of all the Market Investable Equity Universes for
DevelopedMarkets.

Someoftheinvestabilityrequirementsreferredtoaboveareappliedattheindividualsecurityleveland
some at the overall company level, represented by the aggregation of individual securities of the
company.Assuch,theinclusionorexclusionofonesecurity doesnotimply theautomaticinclusionor
exclusionofothersecuritiesofthesamecompany.

TheinvestabilityscreensusedtodeterminetheInvestableEquityUniverseineachmarketare:

EquityUniverseMinimumSizeRequirement.
EquityUniverseMinimumFreeFloatAdjustedMarketCapitalizationRequirement.
DMandEMMinimumLiquidityRequirement.
GlobalMinimumForeignInclusionFactorRequirement.
MinimumLengthofTradingRequirement.
MinimumForeignRoomRequirement.

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2.2.1. EquityUniverseMinimumSizeRequirement

Thisinvestabilityscreenisappliedatthecompanylevel.

In order to be included in a Market Investable Equity Universe, a company must have the required
minimumfullmarketcapitalization.ThisminimumfullmarketcapitalizationisreferredtoastheEquity
Universe Minimum Size Requirement. The Equity Universe Minimum Size Requirement applies to
companiesinallmarkets,DevelopedandEmerging,andisderivedasfollows:

First, the companies in the DM Equity Universe are sorted in descending order of full market
capitalizationandthecumulativecoverageofthefreefloatadjustedmarketcapitalizationoftheDM
Equity Universe is calculated at each company. Each companys free floatadjusted market
capitalizationisrepresentedbytheaggregationofthefreefloatadjustedmarketcapitalizationofthe
securitiesofthatcompanyintheEquityUniverse.
Second,whenthecumulativefreefloatadjustedmarketcapitalizationcoverageof99%ofthesorted
Equity Universe is achieved, the full market capitalization of the company at that point defines the
EquityUniverseMinimumSizeRequirement.
The rank of this company by descending order of full market capitalization within the DM Equity
Universeisnoted,andwillbeusedindeterminingtheEquityUniverseMinimumSizeRequirementat
thenextrebalance.
Example:
Using the steps mentioned above, in this example the full market
capitalizationofthe8008thcompanyofUSD150millionwillbechosenas
theEquityUniverseMinimumSizeRequirement.
Cumulative Free
Free Float- Float-Adjusted
Full Market Adjusted Market Market
Capitalization Capitalization Capitalization Rank of
Company Country (USD millions) (USD millions) Coverage Company
A a 400,000 400,000 1.29% 1
B a 360,000 360,000 2.45% 2
C a 275,000 250,000 3.26% 3
AD a 250,000 250,000 4.06% 4
AE b 240,000 190,000 4.68% 5
AF c 235,000 95,000 4.98% 6
GG a 230,000 230,000 5.73% 7
AH a 225,000 225,000 6.45% 8
AL d 210,000 210,000 7.13% 9

.. .. .. .. ..
WWW f 1,000 250 98.99% 8,007
XYZ g 150 130 99.00% 8,008
YYY f 125 125 99.01% 8,009
ZZZZ f 100 100 99.01% 8,010

Total 31,000,000 100.00%
At the time of the May 2013 SAIR, the Equity Universe Minimum Size
Requirement was USD 143 million. Companies with full market
capitalizations below this level are not included in any Market Investable

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Equity Universe. The Equity Universe Minimum Size Requirement is

reviewedand,ifnecessaryrevised,atSemiAnnualIndexReviews.
2.2.2. EquityUniverseMinimumFloatAdjustedMarketCapitalizationRequirement

Thisinvestabilityscreenisappliedattheindividualsecuritylevel.TobeeligibleforinclusioninaMarket
Investable Equity Universe,asecurity must havea freefloatadjusted marketcapitalizationequaltoor
higherthan50%oftheEquityUniverseMinimumSizeRequirement.
2.2.3. DMandEMMinimumLiquidityRequirement

Thisinvestabilityscreenisappliedattheindividualsecuritylevel.Tobeeligibleforinclusionina
MarketInvestableEquityUniverse,asecuritymusthaveadequateliquiditymeasuredby:
Twelvemonthand3monthAnnualTradedValueRatio(ATVR);
ThreemonthFrequencyofTrading.

TheATVRscreensoutextremedailytradingvolumes,takingintoaccountthefreefloatadjustedmarket
capitalization size of securities. The aim of the 12month and 3month ATVR together with 3month
FrequencyofTradingistoselectsecuritieswithasoundlongandshorttermliquidity.

Aminimumliquiditylevelof20%of3monthATVRand90%of3monthFrequencyofTradingoverthe
last4consecutivequarters,aswellas20%of12monthATVRarerequiredfortheinclusionofasecurity
in a Market Investable Equity Universe of a Developed Market. This rule is referred to as the DM
MinimumLiquidityRequirement.

Aminimumliquiditylevelof15%of3monthATVRand80%of3monthFrequencyofTradingoverthe
last4consecutivequarters,aswellas15%of12monthATVRarerequiredfortheinclusionofasecurity
in a Market Investable Equity Universe of an Emerging Market. This rule is referred to as the EM
MinimumLiquidityRequirement.

In instances when a security does not meet the above criteria, the security will be represented by a
relevant liquid eligible Depositary Receipt if it is trading in the same geographical region.1 Depositary
Receiptsare deemedliquidiftheymeetalltheabovementionedcriteriafor12month ATVR,3month
ATVRand3monthFrequencyofTrading.

1
Exceptions:InRussialiquidADRsmaybeeligibleforinclusionintheMarketInvestableEquityUniversedespitetradinginadifferenttimezone.InPeru,liquidU.S.
listingsotherthanADRsmaybeeligibleforinclusionintheMarketInvestableEquityUniverse.MSCIclassifiesmarketsintothreemaingeographicalregions:EMEA,
AsiaPacificandAmericas.

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Concerning the level of a stock price, there may be liquidity issues for securities trading at a very high
stockprice.Hence,alimitofUSD10,000hasbeensetandsecuritieswithstockpricesaboveUSD10,000
fail the liquidity screening. This rule applies only for nonconstituents of the MSCI Global Investable
MarketIndices.Consequently,currentconstituentsoftheMSCIGlobalInvestableMarketIndiceswould
remainintheindexifthestockpricepassestheUSD10,000threshold.
TheATVRofeachsecurityiscalculatedina3stepprocess:
First, monthly median traded values are computed using the
mediandailytradedvalue,multipliedbythenumberofdaysinthe
monththatthesecuritytraded.Thedailytradedvalueofasecurity
isequaltothenumberofsharestradedduringtheday,multiplied
bytheclosingpriceofthatsecurity.Themediandailytradedvalue
isthemedianofthedailytradedvaluesinagivenmonth.
Second,the monthly mediantradedvalueofasecurityisdivided
byitsfreefloatadjustedsecuritymarketcapitalizationattheend
ofthemonth,givingthemonthlymediantradedvalueratio.
Finally, the 12month ATVR is obtained by taking the average of
themonthlymediantradedvalueratiosoftheprevious12months
or the number of months for which this data is available
(previous6months,3monthsor1month)andannualizingitby
multiplying it by 12. The 3month ATVR is obtained by taking the
averageofthemonthlymediantradedvalueratiosoftheprevious
3 months or 1 month if no 3 month of data is available and
annualizingitbymultiplyingitby12.2
The 3month Frequency of Trading is determined by dividing the
number of days a security traded during a 3month period by the
numberoftradingdayswithinthisperiod.3
2.2.4.GlobalMinimumForeignInclusionFactorRequirement

Thisinvestabilityscreenisappliedattheindividualsecuritylevel.

Tobe eligibleforinclusionina MarketInvestable Equity Universe,asecuritysForeignInclusionFactor
(FIF) must reach a certain threshold. The FIF of a security is defined as the proportion of shares
outstanding that is available for purchase in the public equity markets by international investors. This

2
ATVRvaluesusedintheregularIndexReviewsaswellastherelevantthresholdsarenotrounded.
3
Insomecircumstances,MSCImayapplyrelevantadjustmentstotheliquidityvaluesobtainedintheabovealgorithm.Forexample,atthetimeoftheregularindex
reviews,inthosecaseswheretheATVRand/orFrequencyofTradingarethedecisiveelementsthattriggerthenonadditionordeletionofasecurity,theATVRand
FrequencyofTradingofsecuritiesthathavebeensuspendedduringtherelevantperiodarereviewedtoexcludethesuspensiondays.Inthecasesoflargepublic
offeringsthatsignificantlyincreaseasecuritysfreefloatadjustedmarketcapitalizationandliquidity,MSCItypicallyusestradingvolumesafterthepublicoffering.In
addition, when determining the potential readdition of a security that was deleted in the prior 12months, MSCI typically adjusts ATVR values by excluding the
tradingvolumesofthemonthduringwhichthedeletionofthesecuritywasannouncedandimplemented.

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proportion accounts for the available free float of and/or the foreign ownership limits applicable to a
specificsecurity(orcompany).

Ingeneral,asecuritymusthaveaFIFequaltoorlargerthan0.15tobeeligibleforinclusioninaMarket
Investable Equity Universe. This rule is referred to as the Global Minimum Foreign Inclusion Factor
Requirement.

Exceptionstothisgeneralrulearemadeonlyinthelimitedcaseswheretheexclusionofsecuritiesofa
very large company would compromise the Standard Indexs ability to fully and fairly represent the
characteristics of the underlying market. Please refer to Subsection 2.3.5: Applying Final SizeSegment
InvestabilityRequirementsandIndexcontinuityRulesformoredetails.
2.2.5. MinimumLengthofTradingRequirement

ForanIPOtobeeligibleforinclusioninaMarketInvestableEquityUniverse,thenewissuemusthave
startedtradingatleastfourmonthsbeforetheimplementationoftheinitialconstructionoftheindexor
atleastthreemonthsbeforetheimplementationofaSemiAnnualIndexReview.Thisruleisreferredto
astheMinimumLengthofTradingRequirement.Thisrequirementisapplicabletosmallnewissuesinall
markets.

Large IPOs and large primary / secondary offerings of non indexconstituents are not subject to the
Minimum Length of Trading Requirement and may be included in a Market Investable Equity Universe
andtheStandardIndexoutsideofaQuarterlyorSemiAnnualIndexReview.PleaserefertoSubsection
3.3.4.1:IPOsandOtherEarlyInclusionsfordetails.
2.2.6. MinimumForeignRoomRequirement4


ForasecuritythatissubjecttoaForeignOwnershipLimit(FOL)tobeeligibleforinclusioninaMarket
Investable Equity Universe, the proportion of shares still available to foreign investors relative to the
maximumallowed(referredtoasforeignroom)mustbeatleast15%.

For more information on the adjustment applied to securities within the Market Investable Equity
Universethathaveforeignroomlessthan25%,pleaserefertoSubsection2.3.5.3fordetails.

4
IndiansecuritiesincludedintheReserveBankofIndiasofficiallistofsecuritiesforwhichthecautionlimitorbanlimithasbeenreachedwouldnotbeconsidered
fortheinclusioninMarketInvestableEquityUniverse.Moregenerally,basedoninformationavailablefromthecountryregulatoryauthority,forsecuritieswhere
furtherpurchasearerestrictedduetoforeignownershiprestriction,thesecuritieswouldnotbeconsideredfortheinclusioninMarketInvestableEquityUniverse.

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2.3. DefiningMarketCapitalizationSizeSegmentsforEachMarket

OnceaMarketInvestableEquityUniverseisdefined,itissegmentedintothefollowingsizebased
indices:

InvestableMarketIndex(Large+Mid+Small).
StandardIndex(Large+Mid)
LargeCapIndex
MidCapIndex
SmallCapIndex

ThestructureoftheMSCIGlobalInvestableMarketIndexfamilyineachmarketisdepictedbelow.

TheInvestableMarketIndex,theStandardIndexandtheLargeCapIndexarecreatedfirst,whiletheMid
CapIndexisderivedasthedifferencebetweentheStandardIndexandtheLargeCapIndexandtheSmall
CapIndexisderivedasthedifferencebetweentheInvestableMarketIndexandtheStandardIndex.

In order to create sizesegments that can be meaningfully aggregated into composites, the individual
MarketSizeSegmentsneedtobalancethefollowingtwoobjectives:
Achieving Global Size Integrity by ensuring that, within a given sizesegment of a composite index,
only companies of comparable and relevant sizes are included across all markets. This can be
measured by looking at a sizesegment cutoff relative to a free floatadjusted market capitalization
coveragetargetbasedontheGlobalInvestableEquityUniverse.
AchievingConsistentMarketCoveragebyensuringthateachmarketssizesegmentisrepresentedin
itsproportionalweightinthecompositeuniverse.Thiscanbemeasuredbylookingatasizesegment
cutoffrelativetoaconsistentandcomparabletargetsizesegmentcoveragewithineachmarket.

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Itisnotpossibletoachievebothoftheseobjectivesconsistentlyandsimultaneouslyacrossallmarkets.
Therefore, to balance these objectives, the methodology sets a minimum size cutoff for each size
segmentineachmarketusing:

A size range for all markets derived from a free floatadjusted target market capitalization of the
GlobalInvestableEquityUniverse,togetherwith
A target free floatadjusted coverage range set within each individual Market Investable Equity
Universe.

TheintersectionoftheserangesspecifiesaSizeandCoverageTargetAreaasdepictedbelow.Thisisdone
foreachofthethreesizesegmentindices,namelytheInvestableMarketIndex,theStandardIndex,and
theLargeCapIndices.

Full Market Capitalization
Size Size and Coverage

Range Target Area
Cumulative
Free Float-
Coverage
Adjusted
Range Market
Coverage

CreatingtheSizeSegmentIndicesineachmarketinvolvesthefollowingsteps:

DefiningtheMarketCoverageTargetRangeforeachsizesegment.
DeterminingtheGlobalMinimumSizeRangeforeachsizesegment.
DeterminingtheMarketSizeSegmentCutoffsandassociatedSegmentNumberofCompanies
Assigningcompaniestothesizesegments.
Applyingfinalsizesegmentinvestabilityrequirements.
2.3.1. DefiningtheMarketCoverageTargetRangeforEachSizeSegment

TodefinetheSizeSegmentIndicesforamarket,thefollowingfreefloatadjustedmarketcapitalization
MarketCoverageTargetRangesareappliedtotheMarketInvestableEquityUniverse:

LargeCapIndex: 70%5%.

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StandardIndex: 85%5%.
InvestableMarketIndex: 99%+1%or0.5%.

The Mid Cap Index market coverage in each market is derived as the difference between the market
coverageoftheStandardIndexandtheLargeCapIndexinthatmarket.

TheSmallCapIndexmarketcoverageineachmarketisderivedasthedifferencebetweenthefreefloat
adjustedmarketcoverageoftheInvestableMarketIndexandtheStandardIndexinthatmarket.

2.3.2. DeterminingtheGlobalMinimumSizeRangeforEachSizeSegment

TheGlobalMinimumSizeRangeforeachsizesegmentisdeterminedbydefiningaGlobalMinimumSize
ReferenceforLargeCap,Standard,andInvestableMarketIndices,andspecifyingarangeof0.5timesto
1.15timesthoseReferences.
2.3.2.1. DefiningtheGlobalMinimumSizeReference

The Global Minimum Size Reference for the Large Cap, Standard, and Investable Market sizesegments
arederivedinasimilarmannertothederivationoftheEquityUniverseMinimumSizeasfollows:

First, the companies in the DM Investable Equity Universe are sorted in descending order of full
marketcapitalizationandthecumulativefreefloatadjustedmarketcapitalizationcoverageoftheDM
InvestableEquityUniverseiscalculatedateachcompany.
Then, the respective full market capitalizations of the companies that provide the following
cumulative free floatadjusted market capitalization coverage of the DM Investable Equity Universe
arechosen:

DMLargeCapIndex: 70%coverage.
DMStandardIndex: 85%coverage.
DMInvestableMarketIndex: 99%coverage.

ForEmergingMarkets,theGlobalMinimumSizeReferenceissetatonehalfthecorrespondinglevel
offullmarketcapitalizationusedfortheDevelopedMarketsforeachsizesegment.
The Global Minimum Size References for the Large Cap, Standard, and Investable Market segments,
basedonApril2013data,aresetforthbelow.
The full market capitalization of the company that provides an 85%

cumulative free floatadjusted coverage of the DM Investable Equity

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Universe is USD 4.13 billion. This level, therefore, defines the Global
Minimum Size Reference for DM Standard Indices. Applying the range of
0.5 times to 1.15 times to this Global Minimum Size Reference gives the
GlobalMinimumSizeRangeofUSD2.07billiontoUSD4.749billionforthe
DMStandardIndices.TheEMrangefortheStandardIndices,therefore,is
USD1.03billiontoUSD2.38billion.

Global Minimum Size Reference
Percent of Free Float Adjusted Developed Markets Investable Equity Developed Markets Emerging & Larger Frontier
Market Coverage Universe Global Minimum Size Markets Global Minimum Size
Reference Reference (50% of DM)
May-13 May-13
Universe
Large Cap
70% 11,787 5,893
Mid Cap
85% 4,130 2,065
Small Cap
99% 396 198
All market caps are in USD millions. Data as of the close of April 17, 2013
2.3.3. DeterminingtheSegmentNumberofCompaniesandAssociatedMarketSizeSegmentCutoffs

TheMarketSizeSegmentCutoffsarederivedbyidentifyingasizecutoffwhichfallswithin,orascloseas
possible to, the Size and Coverage Target Area for that sizesegment. For each sizesegment, for each
market,thisisachievedasfollows:
ThecompaniesintheMarketInvestableEquityUniversearesortedindescendingorderoffullmarket
capitalization.
ThecumulativefreefloatadjustedcapitalizationcoverageoftheMarketInvestableEquityUniverseis
calculatedateachcompany.
MSCInotestherespectivefullmarketcapitalizationofthecompaniesthatprovidethefollowingfree
floatadjustedmarketcapitalizationcoveragefortherelevantsizesegments:
LargeCapIndex: 70%
StandardIndex: 85%.
InvestableMarketIndex: 99%.*
IfthefullmarketcapitalizationoftherelevantcompanylieswithintheGlobalMinimumSizeRangefor
thesizesegment,then:
The full market capitalization of the relevant company defines the Market SizeSegment
Cutoffforthatsizesegmentatthatpointintime.

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The number of companies with full market capitalization greater than or equal to the
relevant company provides the Segment Number of Companies, which will be used to
maintaintheindicesovertime.
Ifitisnot,then:
The number of companies is decreased until the full market capitalization of the smallest
company in the sizesegment is equal or higher than the lower bound of the Global
MinimumSizeRangeforthatsizesegment.Or,
The number of companies is increased to include all companies with a full market
capitalizationhigherthantheupperboundoftheGlobalMinimumSizeRangeforthatsize
segment.
ThefullmarketcapitalizationofthelastcompanydefinestheMarketSizeSegmentCutoff
forthatsegmentandtheSegmentNumberofCompaniesissettothiscompanysrank.

Thisprocessisdesignedtogiveprioritytoglobalsizeintegrityovermarketcoverageinsituationswhere
bothobjectivescannotbeachievedsimultaneously.

* For the Investable Market Index, at initial construction, the above
processisnotfollowedinordertoprovideasbroadacoverageaspossible
without sacrificing size integrity. At initial construction the Market Size
Segment Cutoffs and associated Segment Number of Companies of the
InvestableMarketsegmentarederivedbyincludingallcompaniesequalto
or larger than the Global Minimum Size Reference for the Investable
Market Indices. As of April 12, 2007, the Global Minimum Size Reference
wasUSD370million.

SinceSizeSegmentIndicesarebasedoncompanyfullmarketcapitalization,allsecuritiesofacompany
arealwaysclassifiedinthesamesizesegment.Asaresult,theremaybemoresecuritiesthancompanies
inagivensizesegment.

TheMarketSizeSegmentCutoffsandSegmentNumberofCompaniesaremaintaineddaily,andupdated
at SemiAnnual and Quarterly Index Reviews, additionally taking into account index stability and
continuityrules.


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2.3.4. AssigningCompaniestotheSizeSegments

Atinitialconstruction,allcompanieswithfullmarketcapitalizationgreaterthanorequaltothatofthe
full market capitalization of the company that defines the Market SizeSegment Cutoff are assigned to
thatsizesegment.

At SemiAnnual and Quarterly Index Reviews, the company assignment rules additionally take into
account,newadditions,andindexcontinuityandstabilityrules.

Between SemiAnnual and Quarterly Index Reviews, the assignment of companies resulting from
corporateevents(e.g.,mergers,IPOs,spinoffs)to theappropriatesizesegmentsarebasedonMarket
SizeSegmentCutoffsthatareupdateddaily.ThisprocessisdescribedinSubsection3.3:OngoingEvent
RelatedChanges.

2.3.5. ApplyingFinalSizeSegmentInvestabilityRequirementsandIndexContinuityRules

ToenhancethereplicabilityofSizeSegmentIndices,additionalsizesegmentinvestabilityrequirements
aresetfortheInvestableMarketandtheStandardIndices.
2.3.5.1. MinimumFreeFloatMarketCapitalizationRequirement

If the Market SizeSegment Cutoff is within the Global Minimum Size Range for the Investable
Market Index, a security can be included in the Investable Market Index only if its free float
adjusted market capitalization is at least 50% of the Market SizeSegment Cutoff for the
InvestableMarketIndex.InthecaseoftheMarketSizeSegmentCutoffbeingabovetheGlobal
MinimumSizeRangeupperboundaryfortheInvestableMarketIndex,thesecuritysfreefloat
adjusted market capitalization must be at least 50% of the upper boundary of the Global
Minimum Size Range for the Investable Market Index. In the case of the Market SizeSegment
Cutoff being below the Global Minimum Size Range lower boundary for the Investable Market
Index,thesecuritysfreefloatadjustedmarketcapitalizationmustbeatleast50%ofthelower
boundaryoftheGlobalMinimumSizeRangefortheInvestableMarketIndex.

If the Market SizeSegment Cutoff is within the Global Minimum Size Range for the Standard
Index, a security can be included in the Standard Index only if its free floatadjusted market
capitalization is at least 50% of the Market SizeSegment Cutoff for the Standard Index. In the
case of the Market SizeSegment Cutoff being above the Global Minimum Size Range upper
boundaryfortheStandardIndex,thesecuritysfreefloatadjustedmarketcapitalizationmustbe
atleast50%oftheupperboundaryoftheGlobalMinimumSizeRangefortheStandardIndex.In
thecaseoftheMarketSizeSegmentCutoffbeingbelowtheGlobalMinimumSizeRangelower
boundaryfortheStandardIndex,thesecuritysfreefloatadjustedmarketcapitalizationmustbe

IndexMethodology
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at least 50% of the lower boundary of the Global Minimum Size Range for the Standard Index.
Any company excluded from the Standard Index based on this rule is also excluded from the
InvestableMarketIndex.

ForasecuritywithaForeignInclusionFactor(FIF)lowerthan0.15tobeincludedintheStandard
Market Index, its free floatadjusted market capitalization must be at least 1.8 times the
minimumfreefloatadjustedmarketcapitalizationrequiredfortheStandardIndex.Pleaserefer
totheSections3.1.6.2and3.2.1.4fordetailsonassessingconformitywiththeFinalSizeSegment
InvestabilityRequirementsforexistingconstituents.
2.3.5.2. MinimumLiquidityRequirementfortheStandardIndices
TheliquidityofconstituentsisespeciallyimportantfortheStandardIndices,astheseindicesare
widely used for performance benchmarking and as the basis for creating investment vehicles.
Therefore,aMarketRelative12monthATVRscreenisalsoappliedfordeterminingeligibilityof
securities for the Standard Indices. The 12month ATVR levels for the MarketRelative Liquidity
Requirement are updated at each SAIR and published in this methodology book. In the
calculationofthe12monthATVRusedintheabovescreening,thetradingvolumesindepositary
receiptsassociatedwiththatsecurity,suchasADRsorGDRs,arealsoconsidered.5

In addition, as described in Section 2.2.3, in order to be eligible for inclusion in the Market
InvestableEquityUniverseofaDevelopedMarket,amongothercriteria,asecuritymusthavea
3month Frequency of Trading of at least 90% over the last four consecutive quarters. To be
eligible for inclusion in the Market Investable Equity Universe of an Emerging Market, among
othercriteria,asecuritymusthavea3monthFrequencyofTradingofatleast80%overthelast
four consecutive quarters. However, as the liquidity requirements are more stringent for the
Standard Indices, all securities from Developed and Emerging Markets with the 3month
FrequencyofTradingofbelow90%overthelastfourconsecutivequartersareexcludedfromthe
StandardIndices.

Companies that do not meet this investability screen and are therefore not included in the
StandardIndicesarealsonoteligiblefortheSmallCapIndexinthatmarketastheyexceedthe
fullmarketcapitalizationsizethresholdfortheSmallCapIndex.Asaresult,thesecompaniesare
notincludedinanyoftheindiceswithintheMSCIGlobalInvestableMarketIndexfamily.

PleaseseeAppendixIX:MinimumMarketRelativeLiquidityRequirementsfortheStandardIndex
formoredetails.

5InadditionthetradingvolumesofCanadiansecuritiesontheTSEareaggregatedwiththetradingvolumesofsuchsecuritiesontheeligibleU.S.exchanges.

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TherearenoadditionalsizesegmentinvestabilityrequirementsaffectingsecuritiesintheLarge
Cap,MidCap,ortheSmallCapIndicesinadditiontotheMarketRelativeLiquidityRequirement.
2.3.5.3. MinimumForeignRoomRequirement

ForasecuritythatissubjecttoaForeignOwnershipLimit(FOL)tobeincludedintheInvestable
MarketIndexatitsentirefreefloatadjustedmarketcapitalization,theproportionofsharesstill
available to foreign investors relative to the maximum allowed (referred to as foreign room)
must be at least 25%. If a security's foreign room is less than 25% and equal to or higher than
15%,MSCIwilluseanadjustmentfactorof0.5toreflecttheactuallevelofforeignroomtoadjust
thesecurity'sfinalforeigninclusionfactor(FIF).AsdescribedinSubSection2.2.6,securitieswill
notbeeligibleforinclusioninaMarketInvestableEquityUniverseiftheforeignroomislessthan
15%.

The adjustment factor will be applied to the security actual FIF to arrive at the final FIF of the
security. Conformity with the minimum free floatadjusted market capitalization requirements
for Investable Market Index constituents will be assessed using the free floatadjusted market
capitalizationaftertheapplicationoftheadjustmentfactor.

2.4. IndexContinuityRulesfortheStandardIndices

Althoughindexcontinuityrulesdescribedinthissubsectionareprimarilydesignedformaintainingthe
countryStandardIndices,theyarealsoappliedatinitialconstruction,andimpactsomemarkets,suchas
NewZealand.

Index continuity is a desirable feature of an index as it avoids the temporary inclusion or exclusion of
market indices in composite indices at different times. In order to achieve index continuity, as well as
provide some basic level of diversification within a market index, notwithstanding the effect of other
indexconstructionrulescontainedherein,aminimumnumberoffiveconstituentswillbemaintainedfor
a DM Standard Index and a minimum number of three constituents will be maintained for an EM
StandardIndex.Theapplicationofthisrequirementinvolvesthefollowingsteps.

Ifaftertheapplicationoftheindexconstructionmethodology,aStandardIndexcontainsfewerthan
five securities in a Developed Market or three securities in an Emerging Market, then the largest
securities by free floatadjusted market capitalization are added to the Standard Index in order to
reachfiveconstituentsinthatDevelopedMarketorthreeinthatEmergingMarket.
At subsequent Index Reviews, if the free floatadjusted market capitalization of a nonindex
constituentisatleast1.50timesthefreefloatadjustedmarketcapitalizationofthesmallestexisting
constituentafterrebalancing,thelargerfreefloatadjustedmarketcapitalizationsecurityreplacesthe
smallerone.


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WhentheIndexContinuityRuleisineffect,theMarketSizeSegmentCutoffissetat0.5timestheGlobal
MinimumSizeReferencefortheStandardIndexratherthanthefullmarketcapitalizationofthesmallest
companyinthatmarketsStandardIndex.
2.5. CreatingStyleIndiceswithinEachSizeSegment

AllsecuritiesintheinvestableequityuniverseareclassifiedintoValueorGrowthsegmentsusingthe
MSCIGlobalValueandGrowthmethodology.Thismethodologyisavailableat
http://www.msci.com/eqb/methodology/meth_docs/MSCI_Dec07_GIMIVGMethod.pdf

TheMSCIGlobalValueandGrowthmethodologyisappliedtotheStandardandSmallCapIndicesona
marketbymarketbasis.
IN DM Europe, the Value and Growth Indices will be created from the MSCI Europe Standard and
SmallCapIndices,ratherthanthecountryindices.ValueandGrowthcountryindiceswillbederived
fromtheseconstituents.
The Large Cap and Mid Cap Value and Growth Indices are derived using the Value and Growth
InclusionFactorsfromtheStandardValueandGrowthIndices.
The Investable Market Index Value and Growth Indices are created by aggregating the Value and
GrowthsegmentsoftheStandardandSmallCapIndices.
TheStandardValueandGrowthIndicesusethefullsetofvariablesaspertheMSCIGlobalValueand
Growthmethodology.
However, for Small Cap Indices, the Long Term Forward EPS Growth rate variable is not used as a
variable to define the growth investment style characteristic, due to lack of consistent coverage by
streetanalysts.
2.6. ClassifyingSecuritiesundertheGlobalIndustryClassificationStandard

All securities in the Global Investable Equity Universe are assigned to the industry that best describes
their business activities. To this end, MSCI has designed, in conjunction with Standard & Poors, the
Global Industry Classification Standard (GICS). The GICS currently consists of 10 sectors, 24 industry
groups,68industries,and154subindustries.UndertheGICS,eachcompanyisassigneduniquelytoone
subindustry according to its principal business activity. Therefore, a company can only belong to one
industrygroupingateachofthefourlevelsoftheGICS.

Classifying securities into their respective subindustries can be complex, especially in an evolving and
dynamicenvironment.TheGICSguidelinesusedtodeterminetheappropriateindustryclassificationare
asfollows:

A security is classified in a subindustry according to the business activities that generate
approximately60%ormoreofthecompanysrevenues.
A company engaged in two or more substantially different business activities, none of which
contributes 60% or more of revenues, is classified in the subindustry that provides the majority of
boththecompanysrevenuesandearnings.

IndexMethodology
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Where the above guidelines cannot be applied, or are considered inappropriate, further analysis is
conducted,andotherfactorsareanalyzedtodetermineanappropriateclassification.

ForfurtherdetailsontheGICSseeAppendixV:GlobalIndustryClassificationStandard(GICS).


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2.7. CreatingSizeSegmentIndices:Examples
2.7.1. DeterminingMarketSizeSegmentCutoffsandAssigningCompaniestotheSizeSegments
Example:
For the USA Standard segment, companies are counted in descending
order of full market capitalization starting with the largest company.
Companies continue to be counted until the cumulative free float
adjusted market capitalization of the companies reaches 85% of the
free floatadjusted market capitalization of the US Market Investable
Equity Universe. In this example, the full market capitalization of the
last company counted is within the Global Minimum Size Range. The
rankofthiscompanyintheUSMarketInvestableEquityUniverse(645)
definestheSegmentNumberofCompaniesforthesizesegmentandits
full market capitalization (USD 4.1 billion) defines the Market Size
SegmentCutoffbetweenStandardandSmallCapsegmentsintheUS.
6,000
and USA
Higher Smallest Company in the
Standard Index
5,000
(80%,4.67 B) (90%,4.67 B)
Global Minimum Size Range
4,000
Company Full Market Capitalization
Standard Index Size and Coverage

Target Area
3,000
2,000
(80%,2.03 B) (90%,2.03 B)
c
Market Coverage Target Range
1,000
Standard Index Small Cap Index
0
28.6%
50.3%
63.2%
71.6%
77.1%
80.8%
83.8%
86.0%
87.9%
89.6%
90.9%
92.1%
93.0%
93.9%
Cumulative Free-Float Adjusted Market Capitalization


IndexMethodology
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Example:
For the Hungary Standard segment, companies are counted in
descending order of full market capitalization starting with the largest
company.Companiescontinuetobecounteduntilthecumulativefree
floatadjusted market capitalization of the companies reaches 85% of
the free floatadjusted market capitalization of the Hungary Market
Investable Equity Universe. In this example, the full market
capitalization of the last company counted is significantly above the
upper bound of the Global Minimum Size Range. All companies in
Hungary,abovetheupperboundareaddedresultinginthecumulative
free floatadjusted market capitalization coverage above 90%, the
upperboundoftheMarketCoverageTargetRange.Therankofthelast
company counted (4) defines the Segment Number of Companies and
itsfullmarketcapitalization(USD3.8billion)definestheSizeSegment
CutoffbetweentheHungaryStandardandSmallCapIndices.Thenext
largest company has a full market capitalization of USD 941 million,
belowthelowerboundoftheGlobalMinimumSizeRange.
5,000
and Smallest Company in the
Hungary
Higher Standard Index
4,500
4,000
3,500
Company Full Market Capitalization
3,000
2,500
(80%, 2.33 B) (90%, 2.33 B)
Global Minimum
2,000 Standard
Size Range
Index Size
and
1,500 Coverage
Target Area
1,000 (90%,1.01 B)
(80%,1.01 B)
Market
Coverage
500 Target Range
Standard Index Small Cap Index

0
43.9%
77.4%
86.2%
96.3%
97.9%
99.0%
99.6%
100.0%
Cumulative Free-Float Adjusted Market Capitalization Coverage


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Section 3: Maintaining the MSCI Global Investable

MarketIndices

TheMSCIGlobalInvestableMarketIndicesaremaintainedwiththeobjectiveofreflectingtheevolution
oftheunderlyingequitymarketsandsegmentsonatimelybasis,whileseekingtoachieve:

Indexcontinuity,
Continuousinvestabilityofconstituentsandreplicabilityoftheindices,and
Indexstabilityandlowindexturnover.

Inparticular,indexmaintenanceinvolves:

SemiAnnualIndexReviews(SAIRs)inMayandNovemberoftheSizeSegmentandGlobalValueand
GrowthIndiceswhichinclude:
o UpdatingtheindicesonthebasisofafullyrefreshedEquityUniverse.
o Takingbufferrulesintoconsiderationformigrationofsecuritiesacrosssizeandstylesegments.
o UpdatingForeignInclusionFactors(FIFs)andNumberofShares(NOS).
QuarterlyIndexReviews(QIRs)inFebruaryandAugustoftheSizeSegmentIndicesaimedat:
o Including significant new eligible securities (such as IPOs which were not eligible for earlier
inclusion)intheindex.
o AllowingforsignificantmovesofcompanieswithintheSizeSegmentIndices,usingwiderbuffers
thanintheSAIR.
o ReflectingtheimpactofsignificantmarketeventsonFIFsandupdatingNOS.
Ongoingeventrelatedchanges.Changesofthistypearegenerallyimplementedintheindicesasthey
occur.SignificantlylargeIPOsareincludedintheindicesafterthecloseofthecompanystenthdayof
trading.
3.1. SemiAnnualIndexReviewsinMayandNovember

TheobjectiveoftheSAIRsistosystematicallyreassessthevariousdimensionsoftheEquityUniversefor
all markets on a fixed semiannual timetable. A SAIR involves a comprehensive review of the Size
SegmentandGlobalValueandGrowthIndices.

DuringeachSAIR,theEquityUniverseisupdatedandtheGlobalMinimumSizeRangeisrecalculatedfor
eachsizesegment.Then,thefollowingindexmaintenanceactivitiesareundertakenforeachmarket:

UpdatingtheMarketInvestableEquityUniverse.
RecalculatingtheGlobalMinimumSizeReferencesandGlobalMinimumSizeRanges
ReassessingtheSegmentNumberofCompaniesandtheMarketSizeSegmentCutoffs.

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Assigningcompaniestothesizesegmentstakingintoaccountbufferzones.
AssessingconformitywithFinalSizeSegmentInvestabilityRequirements.
3.1.1. UpdatingtheEquityUniverse

DuringeachSAIR,theEquityUniverseisupdatedbyidentifyingnewequitysecuritiesthatwerenotpart
oftheEquityUniverseatthepreviousQuarterlyIndexReviewandclassifyingthemintocountries.

DetailsonthedeterminationoftheEquityUniverseareinSubsection2.1:DefiningtheEquityUniverse.
3.1.2. UpdatingtheMarketInvestableEquityUniverses

During each SAIR, each new company/security in the updated Equity Universe is evaluated for
investability using the same investability screens described in Subsection 2.2: Determining the Market
InvestableEquityUniverses.Existingconstituents,ontheotherhand,areevaluatedusingbuffersaround
theseinvestabilityrequirementsasexplainedbelow.
3.1.2.1. UpdatingtheEquityUniverseMinimumSizeRequirement

TheEquityUniverseMinimumSizeRequirementisupdatedateachSAIRinthefollowingmanner:

Thecumulativefreefloatadjustedmarketcapitalizationcoverageatthecompanyrankthatwasusedto
definetheEquityUniverseMinimumSizeRequirementatthepreviousrebalanceiscalculated.

IfthecoverageoftheupdatedDMEquityUniverseatthatrankfalls:

between99%and99.25%,theEquityUniverseMinimumSizeRequirementissettothecurrent
fullmarketcapitalizationofthecompanyatthatrank.
below 99%, the Equity Universe Minimum Size Requirement is reset to the full market
capitalizationofthecompanyat99%coverageandtherankofthatcompanyisnotedforthe
nextrebalance.
above99.25%,EquityUniverseMinimumSizeRequirementandrankareresetbasedonthefull
marketcapitalizationofthecompanyat99.25%coverage.

ThesameEquityUniverseMinimumSizeRequirementisusedforbothDevelopedandEmergingMarkets.
Example:SupposethatatthepreviousSAIRtheEquityUniverseMinimum
SizeRequirementwassetatUSD145millionandreflectedthefullmarket
capitalizationofthecompanyrankedasthe8008thlargestcompanybyfull
market capitalization in the DM Equity Universe. Say that in the current

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SAIR, the full market capitalization of the company at the 8008th rank is
USD 151 million and the cumulative free floatadjusted market
capitalizationrepresentationatthatcompanysrankis98.9%.Inaddition,
suppose the top 8201 companies cover 99.0% of the free floatadjusted
marketcapitalizationandthefullmarketcapitalizationofthecompanyat
the8201strankisUSD147million.ThenUSD147millionissetasthenew
EquityUniverseMinimumSizeRequirement.Thefullmarketcapitalization
ofthecompanyatthe8201strankwillbetheinitialreferenceforthenext
SAIR.

New companies are evaluated relative to this updated threshold, whereas all existing constituents will
notbeevaluatedrelativetothisinvestabilityrequirement.
3.1.2.2. UpdatingtheEquityUniverseMinimumFreeFloatAdjustedMarketCapitalization
The Equity Universe Minimum Free FloatAdjusted Market Capitalization Requirement is calculated as
50%oftheupdatedEquityUniverseMinimumSizeRequirement.

New companies are evaluated relative to this updated threshold, whereas all existing constituents will
3.1.2.3. MinimumLiquidityRequirementforExistingConstituents
An existing constituent of the Investable Market Indices may remain in a Market Investable Equity
Universeifits12monthATVRfallsbelowtheMinimumLiquidityRequirementaslongasitisabove2/3rd
of the minimum level requirement of 20% for Developed Markets and 15% for Emerging Markets, i.e.,
13.3%and10%,respectively.Inaddition,inordertoremainintheInvestableMarketIndicestheexisting
constituentmusthave:

The3monthATVRofatleast5%;
The 3month Frequency of Trading of at least 80% for Developed Markets and 70% for
EmergingMarkets.
Ifanexistingconstituent,representedbyalocallistingnolongermeetstheaboverequirements,liquid
DepositaryReceiptsthatdomeetsuchrequirementscanbeconsideredforinclusion.DepositaryReceipts
can only be considered if they are listed in the same geographical region as the local listing of the
underlyingsecurity.

If an existing constituent of a Standard Index in Emerging Markets fails to meet the liquidity
requirements,buthasaweightofmorethan10%intherespectivecountryindexanditsfloatadjusted
marketcapitalizationisabove0.5timestheGlobalMinimumSizeReferenceforEmergingMarkets,then

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suchconstituentwillremainintheindex.However,MSCIwouldapplyaLiquidityAdjustmentFactorof
0.5totheweightofthesecurity,andinthesubsequentindexreview,MSCI:
Would delete the security from the index if the security does not meet all liquidity
requirementsforexistingconstituentscalculatedafterapplyingtheLiquidityAdjustmentFactor
or
Would maintain the security in the GIMI and remove the Liquidity Adjustment Factor if the
security meets all the liquidity requirements for new constituents, calculated before applying
theLiquidityAdjustmentFactorfortwoconsecutiveSemiAnnualIndexReviewsor
WouldcontinuemaintainingthesecurityintheGIMIwiththeLiquidityAdjustmentFactorof0.5
ifnoneoftheaboveconditionsaremet
3.1.2.4. GlobalMinimumForeignInclusionFactorRequirement

NewsecuritieswithaFIFlowerthan0.15areincludedintheMarketInvestableEquityUniverseiftheir
free floatadjusted market capitalization exceeds 1.8 times half of the Standard Index Interim Market
SizeSegment Cutoff. Interim Market SizeSegment Cutoffs are calculated daily in order to determine
eligibility for early inclusion of securities. They are based on the current Market Investable Equity
Universe (please refer to section 3.3.1: Determining the Interim Market SizeSegment Cutoffs for Daily
Maintenanceformoredetails).

Allexistingconstituentswillnotbeevaluatedrelativetothisinvestabilityrequirement.
3.1.2.5. MinimumForeignRoomRequirement

NewsecuritiesthataresubjecttoaForeignOwnershipLimit(FOL)areeligibleforinclusionintheMarket
InvestableEquityUniverseifforeignroomofthesecuritiesisatleast15%.Allexistingconstituentswill

3.1.3. RecalculatingtheGlobalMinimumSizeReferencesandGlobalMinimumSizeRanges
The Global Minimum Size References and corresponding ranges are reset at the SAIRs using a process
similartotheoneusedtoupdatetheEquityUniverseMinimumSizeRequirement.Moredetailsmaybe
foundinAppendixVIII:UpdatingtheGlobalMinimumSizeReferencesandRanges.
3.1.4. ReassessingtheSegmentNumberofCompaniesandtheMarketSizeSegmentCutoffs

TheSegmentNumberofCompaniesandthecorrespondingMarketSizeSegmentCutoffsareupdatedto
accountforchangesineachMarketInvestableEquityUniverse.


IndexMethodology
May2013
3.1.4.1. DeterminingInitialSegmentNumberofCompanies

IftheInterimMarketSizeSegmentCutoff6isequalorabovethelowerboundoftheGlobalMinimumSize
Range, then the Initial Segment Number of Companies is equal to the number of companies in the
updated Investable Equity Universe with the full company market capitalization equal or above the
InterimMarketSizeSegmentCutoff.IftheInterimMarketSizeSegmentCutoffisbelowthelowerbound
of the Global Minimum Size Reference, then the Initial Segment Number of Companies is equal to the
sumof:
The number of companies in the updated Investable Equity Universe with the full company
marketcapitalizationequalorabovethelowerboundoftheGlobalMinimumSizeRangeand;
ThenumberofcompaniesintheupdatedEquityInvestableUniversethatwerealsopartofthe
InvestableMarketIndicespriortotheSAIRwiththefullmarketcapitalizationbelowtheGlobal
MinimumSizeRange,butabovetheInterimMarketSizeSegmentCutoff.
This Initial Segment Number of Companies takes into account the newly eligible companies as well as
deletionsfromtheupdatedEquityInvestableUniverse.
3.1.4.2. ChangesintheSegmentNumberofCompanies

ThefullmarketcapitalizationofthecompanyrankedintheupdatedMarketInvestableEquityUniverseat
the Initial Segment Number of Companies and the cumulative free floatadjusted market capitalization
coverage at this company rank are used to verify that the Initial Segment Number of Companies falls
either:
withintheSizeandCoverageTargetAreafortheSizeSegmentIndexor
withintheLowerorUpperSizeRangeBoundaryProximityAreas,whichspanfrom0.5timesto
0.575timesandfromonetimeto1.15timestheGlobalMinimumSizeReferencerespectively
(pleaserefertothediagrambelowformoredetails).

Ifitdoes,theSegmentNumberofCompaniespostSAIRbecomesequaltothisInitialSegmentNumberof
Companies, and the full market capitalization corresponding to the smallest company in the Segment
NumberofCompaniesbecomestheMarketSizeSegmentCutoffforthatmarketandisusedinthisSAIR.
The Segment Number of Companies is also equal to the Initial Segment Number of Companies in the
caseswhenthefullcompanymarketcapitalizationofthecompanycorrespondingtotheInitialSegment
NumberofCompaniesisabovetheGlobalMinimumSizeRangeandtherearenoinvestablecompanies
betweenthiscompanyandtheupperboundaryoftheGlobalMinimumSizeRange.

6
TheInterimMarketSizeSegmentCutoffduringSAIRiscalculatedthesamewayastheInterimMarketSizeSegmentCutoffs,whicharereporteddaily,howeverthe
NumberofSharesandForeignInclusionfactorpostSAIRareusedinthecalculationsandthevalueisnotlimitedbytheGlobalMinimumSizeRange.

IndexMethodology
May2013
ChangingSegmentNumberofCompanies
Full Market Capitalization Nb. of Companies
1.15xGMSR
Upper Size Range Boundary Proximity Area
GMSR
0.575XGMSR
Low er Size Range Boundary Proximity Area
0.50XGMSR
80% 85% 90%
Cumulative Free Float-Adjusted Market Coverage
Additions No Changes
Deletions
IftheInitialSegmentNumberofCompaniesfallsoutsideofthesizeandcoveragetargetarea,theInitial
Segment Number of Companies is changed to bring it closer to the area. In making this change,
considerationisgiventoindexstabilityandindexturnover,whichmayimpacttheabilityofMarketSize
SegmentCutoffstofallwithintheSizeandCoverageTargetrange.

DependingonthelocationoftheMarketSizeSegmentCutoffderivedfromtheInitialSegmentNumber
of Companies relative to the Size and Coverage Target Area, an increase in, or a reduction of, the
SegmentNumberofCompaniesmayberequired.
When the Market SizeSegment Cutoff is above the upper boundary of the Global Minimum Size
Range and there are investable companies between the company corresponding to the Initial
SegmentNumberofCompaniesandtheupperboundaryoftheGlobalMinimumSizeRange,orthe
MarketSizeSegmentisbelowthelowerboundaryoftheMarketCoverageTargetRange,additionsto
theSizeSegmentIndexareneeded.
When the Market SizeSegment Cutoff is below the lower boundary of the Global Minimum Size
Range, or above the Market Coverage Target Range, deletions from the SizeSegment Index are
needed.

TheprocessforadjustingtheSegmentNumberofCompaniesisasfollows:

IfadditionstotheSegmentNumberofCompaniesarerequired:
o The number of companies is increased to include all companies with a full market capitalization
higherthantheupperboundaryoftheGlobalMinimumSizeRange.
o The number of companies is increased to include all companies with a full market capitalization
higher than the upper limit of the Lower Size Range Boundary Proximity Area, if any, that are
requiredtoreachthelowerboundaryoftheMarketCoverageTargetRange.
o The additions are made in descending order of full market capitalization. The full market
capitalizationofthelastaddedcompanythenbecomestheMarketSizeSegmentCutoff.Ifthefull

IndexMethodology
May2013
market capitalization of the last added company is above the upper boundary of the Global
Minimum Size Range then the Market SizeSegment Cutoff is set at this upper boundary of the
GlobalMinimumSizeRange.

IfareductionoftheSegmentNumberofCompaniesisrequiredtoreachtheSizeandCoverageTarget
Area, limits are placed on the decrease in the number of companies, to further enhance index
stability.Theselimitsareimplementedinthefollowingsteps:
o First,areductionofnomorethan5%oftheInitialSegmentNumberofCompaniesismadetobring
theMarketSizeSegmentCutoffintocompliancewiththeSizeandCoverageTargetArea.Onlythe
companies with full company market capitalization lower than the lower limit of the Upper Size
RangeBoundaryProximityAreacanberemoved.
o IfthisreductionbringstheMarketSizeSegmentCutoffintocompliancewiththeGlobalMinimum
SizeRange,orremovesatleasthalfthefreefloatadjustedmarketcapitalizationthatliesbetween
thesmallestcompanybeforetheadjustmentoftheInitialSegmentNumberofCompaniesandthe
lowerboundoftheGlobalMinimumSizeRange,nofurtheradjustmentisnecessary.
o Ifnot,thenareductionofnotmorethan20%oftheInitialSegmentNumberofCompaniesismade
toremoveatmosthalfthefreefloatadjustedmarketcapitalizationthatliesbetweenthesmallest
companybeforeadjustingtheInitialSegmentNumberofCompaniesandthelowerbound.
o Inmarketsegmentswithasmallnumberofcompanies,thedeletionofthefirsttwocompaniesis
notsubjecttothelimitsdescribedabove.
o Whenalimitisplacedonthedecreaseinthenumberofcompanies,asexplainedabove,thefull
marketcapitalizationofthesmallestcompanyintheindexwillremainbelowthelowerboundary
oftheGlobalMinimumSizeRange.Inthiscase,theMarketSizeSegmentCutoffissetatthislower
bound of 0.5 times the Global Minimum Size Reference instead of the size of the smallest
company.
3.1.5. AssigningCompaniestoAppropriateSizeSegments

During an SAIR, companies are assigned with the following priority to the SizeSegments until the
SegmentNumberofCompaniesisachieved:
CurrentconstituentsofagivenSizeSegmentIndex,aswellascompaniesassignedtothisSize
SegmentduringlastIndexReviewthatfailedtheFinalSizeSegmentInvestabilityRequirements,
greaterthantheMarketSizeSegmentCutoff.
Newly investable companies with a full market capitalization greater than the Market Size
SegmentCutoff.
CompaniesinthelowerSizeSegmentIndex,aswellascompaniesassignedtothisSizeSegment
duringlastIndexReviewandfailedtheFinalSizeSegmentInvestabilityRequirements,greater
thantheupperbufferthresholdofthelowersizesegment.(Bufferzonesforsizesegmentsare
explainedinmoredetailbelow).
CurrentconstituentsofagivenSizeSegmentIndex,aswellascompaniesassignedtothisSize
Segment during the last Index Review that failed the Final SizeSegment Investability
Requirements,inthelowerbufferoftheSizeSegmentindescendingcapitalizationorder,until
thethresholdofthebufferisreached.
Thelargestcompaniesfromtheupperbufferofthenextlowersizesegment.

OncecompanieshavebeenassignedtotheStandard,LargeandInvestableMarketSegments,companies
arethenassignedtotheMidandSmallCapSegments.TheMidCapSegmentcomprisesthecompanies
thatareintheStandardSegmentbutnottheLargeCapSegment.TheSmallCapSegmentcomprisesthe
companiesthatareintheInvestableMarketSegmentbutnotintheStandardSegment.

IndexMethodology
May2013
3.1.5.1. UsingBufferZonestoManagetheMigrationofCompaniesbetweenSizeSegmentIndices

Inordertobetterreflecttheinvestmentprocessesofsizemanagers,allowfortimelyrepresentationof
market developments when securities move far away from sizesegment thresholds, and help control
index turnover, buffer zones are used to control the migration of companies between SizeSegment
Indices.

Anexistingconstituentisgenerallyallowedtoremaininitscurrentsizesegmentevenifitsfullmarket
capitalization falls below (above) the Market SizeSegment Cutoff that defines the lower (upper)
boundaryofitssegment,aslongasitscompanyfullmarketcapitalizationfallswithinabufferzonebelow
(above)theMarketSizeSegmentCutoff.ThebufferzonesatSAIRsaredefinedwithboundariesat33%
and +50% of the Market SizeSegment Cutoff between two sizesegments. At Quarterly Index Reviews,
thebufferzonesaresetat50%and+80%.

Inaddition,aSmallCapEntryBufferZoneisusedfortheentryintheSmallCapIndicesofnoncurrent
constituents. It is defined with a boundary at +50% the Market SizeSegment Cutoff for the Investable
MarketIndex.TheinclusionintheSmallCapIndicesofallnewlyeligiblecompaniesabovetheInvestable
Market SizeSegment Cutoff could lead to a excessively large number of additions of small companies.
Consequently,noncurrentconstituentswithintheSmallCapEntryBufferZonewhichareassignedtothe
Small Cap Segment are included in the Small Cap Indices only to the extent that they replace current
constituents which have fallen below the Small Cap Lower Buffer. The remaining companies are not
included in the Investable Market Indices, but are still taken into account to determine the Segment
NumberofCompanies.

SAIRBuffers
Large Cap
Mid Cap
Upper Buffer (+50%)
Large Cap
Lower Buffer (-33%)
Mid Cap
Small Cap
Upper Buffer (+50%)
Mid Cap/Standard
Lower Buffer (-33%)
Small Cap
Small Cap
Entry Buffer (+50%)
Small Cap
Lower Buffer (-33%)


IndexMethodology
May2013
3.1.6. AssessingConformitywithFinalSizeSegmentInvestabilityRequirements
3.1.6.1. ForNewConstituents
Once companies are assigned to each sizesegment, the securities of companies in each segment are
evaluated for conformity with the additional sizesegment investability requirements for each size
segment.Thesecuritiesofnewlyeligiblecompaniesandofcompaniesmigratingfromthelowersegment
arerequiredtomeettheadditionalinvestabilityrequirementsasdescribedinSubsection2.3.5:Applying
Final SizeSegment Investability Requirements and Index Continuity Rules and Appendix IX: Minimum
MarketRelativeLiquidityRequirementsfortheStandardIndex.

Inaddition,IPOseligibleforearlyinclusionaccordingtoSubsection3.3.4.1,andforwhichtheeffective
date of inclusion is either 5 days before the effective date of the SAIR or 3 days after, will be made
effective to coincide with the SAIR. For example, when the effective date of inclusion of the IPO is
November28(3businessdaysbeforeDecember1),whiletheeffectivedateoftheSAIRisDecember1,
theIPOwillbeaddedeffectiveDecember1.

Forcompaniestradingonaconditionalbasis(whenissuedtrading)priortotheirlistingandunconditional
trading, MSCI intends to assess the inclusion of the company in the MSCI Indices on its first day of
conditionaltrading.
3.1.6.2. ForExistingConstituents
Existingconstituentsmayremaininthesizesegmentindicesiftheywouldotherwisefailtheadditional
investabilityrequirementsforFreeFloatMarketCapitalizationand12monthATVRdescribedinSections
2.3.5.1and2.3.5.2butstillmeet2/3rdofthethreshold7.ExistingconstituentsoftheSmallCapIndexmust
have a FIF of equal to or larger than 0.15 to remain in the index. Existing constituents of the Standard
Index with FIF of less than 0.15 must meet 2/3rd of the 1.8 times of the minimum free floatadjusted
market capitalization required for the Standard Index. In addition, existing Standard Index constituents
mayremaininthesizesegmentif:
The 3month ATVR and Frequency of Trading are at least 10% and 80% respectively for Developed
Markets
The 3month ATVR and Frequency of Trading are at least 7.5% and 80% respectively for Emerging
Markets

If an existing Standard Index constituent, represented by a local listing no longer meets the above
requirements,liquideligibleDepositaryReceiptsthatdomeetsuchrequirementsmaybeconsideredfor

7
ForpotentialdeletionsofexistingconstituentsoftheMSCIGlobalStandardIndicesothersignificantliquidlistingswillbetakenintoaccountinthecalculationofthe
12monthATVRifinsufficientliquidityistheonlyreasonfordeletion.

IndexMethodology
May2013
inclusion.DepositaryReceiptscanonlybeconsiderediftheyarelistedinthesamegeographicalregionas
thelocallistingoftheunderlyingsecurity.

ExistingStandardIndexconstituentsinthelowerbufferthatfailtheadditionalinvestabilityrequirements
oftheStandardIndexaremovedtotheSmallCapIndex.AnyotherStandardIndexconstituentthatfails
theserequirementsisnotincludedinanyoftheindiceswithintheMSCIGlobalInvestableMarketIndex
family.

Current constituent securities for which there is less than 25% foreign room may have their weight
adjustedbytheapplicationofanadjustmentfactortoreflecttheiractuallevelofforeignroom.

The postreview adjustment factor depends on the current adjustment factor and the actual level of
foreignroomofthesecurities,asshowninthetablebelow:

Postreviewadjustmentfactor
foreignroom>= 15%<=foreign 7.5%<=foreign 3.75%<=foreign foreignroom

25% room<25% room<15% room<7.5% <3.75%
Currentadjustment
factor=1 1 1 0.5 0.25 0
Currentadjustment
factor=0.5 1 0.5 0.5 0.25 0
Currentadjustment
factor=0.25 1 0.5 0.25 0.25 0

Iftheforeignroomofanexisting constituentdecreasesbelow3.75%andthesecuritydoesnothavea
liquid eligible Depositary Receipt (DR), then the adjustment factor equals 0.8 However, if the foreign
roomofanexistingconstituentdecreasesbelow3.75%andthesecurityhasaliquideligibleDR,thenthe
adjustment factor equals 0.25. Eligible DRs are limited to level II and level III American Depositary
Receipts(ADR)listedontheNewYorkStockExchangeortheNASDAQ,GlobalDepositaryReceipts(GDR)
aswellasADRslistedontheLondonStockExchange.DRsaredeemedliquidiftheir12monthATVRis
above20%forDevelopedMarketsand15%forEmergingMarketsandFrontierMarkets.

In order to preserve index continuity, conformity with the minimum free floatadjusted market
capitalization requirements for existing IMI Index constituents will be assessed using the free float
adjusted market capitalization before the application of the adjustment factor. That is, existing
constituentsoftheIMIIndexwithFIF(beforetheapplicationoftheadjustmentfactor)ofgreaterthanor
equalto0.15mustmeet2/3rdoftheminimumfreefloatadjustedmarketcapitalizationrequiredforthe
Standard or Small Cap Index to remain in the Standard or Small Cap Index, respectively. Existing
constituentsoftheStandardIndexwithFIF(beforetheapplicationoftheadjustmentfactor)oflessthan

8
Theadjustmentfactorequals0for(i)IndiansecuritiesincludedintheReserveBankofIndiasofficiallistofsecuritiesforwhichthecautionlimitorbanlimithas
beenreached;(ii)moregenerally,basedoninformationavailablefromthecountryregulatoryauthority,forsecuritieswherefurtherpurchasearerestricteddueto
foreignownershiprestriction.

IndexMethodology
May2013
0.15mustmeet2/3rdofthe1.8timesoftheminimumfreefloatadjustedmarketcapitalizationrequired
fortheStandardIndextoremainintheStandardIndex.

ConformitywiththeminimumfreefloatadjustedmarketcapitalizationrequireemtnsfornoncurrentIMI
constituentswillbeassessedusingthefreefloatadjustedmarketcapitalizationaftertheapplicationof
theadjustmentfactor.
ForeignroomlevelwillbereviewedonaquarterlybasiscoincidingwiththeregularMSCIIndexReviews.
Generally,anupwardmovementoftheadjustmentfactorforexistingconstituentsfollowingaprevious
reduction in foreign room will only be considered 12 months after the weight reduction unless the
upwardmovementoftheadjustmentfactorisprimarilydrivenbyachangeinFOL9.Forasecuritythatis
deletedfromtheindexasaresultofhavingaforeignroomlowerthan3.75%,itsindexinclusionwillonly
bereconsidered12monthsafteritsdeletion.
3.1.7. SemiAnnualIndexReviewofChangesinForeignInclusionFactors(FIFs)

DuringaSAIR,changesinFIFscanresultfrom:
TheimplementationoftheAnnualFullCountryFloatReviewattheMaySAIR.Onceayearadetailed
reviewoftheshareholderinformationusedtoestimatefreefloatforconstituentandnonconstituent
securities is carried out for each country. The review is comprehensive, covering all aspects of
shareholderinformation.
ChangesinFIFsthatresultfromeventsthatoccurredinthecourseofthepastquartersuchaslarge
markettransactions,secondaryofferingsnotreflectedatthetimeoftheevent.Theseareidenticalto
those typically implemented during Quarterly Index Reviews, as outlined in Subsection: 3.2.3.
QuarterlyIndexReviewChangesinFIFs,includingthethresholdsmentionedinthefootonoteforlarge
markettransactions
3.1.8. SemiAnnualIndexReviewofChangesinNumberofShares(NOS)
DuringaSAIR,changesinNOSmayresultfromeventsthatoccurredorwerenotcapturedinthecourse
of the previous quarter. These are identical to those typically implemented during Quarterly Index
Reviews(QIRs),asoutlinedinSubsection3.2.4:QuarterlyIndexReviewofChangesinNumberofShares.
3.1.9. DateofDataUsedforSemiAnnualIndexReview

Ingeneral,thestandarddatacutoffdatesfortheMayandNovemberSAIRsareasfollows:

(i) fordatausedforupdatingtheEquityUniverse(incorporatingallFIFandNOSchanges),theend
ofFebruaryfortheMaySAIRandtheendofAugustfortheNovemberSAIR;

9
DuringaregularIndexReview,foranyexistingconstituentsoftheMSCIIndiaIMIwhoseweightisdecreasedasaresultofachangeintheadjustmentfactordueto
lowforeignroom,MSCIwillcontinuetomonitoranypotentialincreasedforeignroomduetoanincreaseinFOL(asofficiallyannouncedbytheReserveBankofIndia)
untilfivebusinessdaysbeforetheeffectivedateofthatIndexReview

IndexMethodology
May2013
(ii) forthepricesusedforcalculatingmarketcapitalizationgenerallyanyoneofthelast10business
daysofAprilfortheMaySAIRandofOctoberfortheNovemberSAIR,respectively;
(iii) fordatausedforincorporatingallforeignroomchangestoexistingEquityUniverse,theendof
MarchfortheMaySAIRandtheendofSeptemberfortheNovemberSAIR;and
(iv) fordatausedforcalculationofliquidityrequirements,theendofMarchfortheMaySAIRandof
SeptemberfortheNovemberSAIR,respectively.

AbusinessdayisdefinedasadayfromMondaytoFridaywheremarketscumulativelyconstitutingmore
than80%oftheMSCIAllCountriesWorldIndexmarketcapitalizationareexpectedtobeopen.

As a general rule, price movements after the price cutoff date will not impact the results of the index
review.However,incasesofextraordinaryeventsornewsrelatedtoaspecificcompanyidentifiedasa
migrationbetweenthesizesegmentsorasanadditiontotheIMIbasedontheindexreviewpricecutoff
date MSCI may decide not to change the companys sizesegment allocation. In such instances, the
company would either be maintained in its current sizesegment or not added to the IMI. Examples of
suchextraordinaryeventsornewsareallegationsoffraud,falsificationofaccountingdataornewsona
takeoverbidresultinginasignificantreduction(orincrease)incompanysmarketcapitalizationbetween
the index review price cutoff date and the announcement date or/and in its suspension for an
undetermined period. Market cap fluctuations or suspensions of trading after the index review
announcementdatetypicallywouldnotresultinthereversionofanalreadyannounceddecisiononthe
companys sizesegment allocation. The policy on implementation of the index review changes for
securities suspended around the index review implementation dates is stated in Appendix VII of this
document.

Insomecases,theFIFandtheNOSofasecuritymaybemonitoredandupdatedrightuptothecutoff
datefortheprices(describedinSection3.1.9(ii)above).Suchcasestypicallyincludesecuritieswithlow
foreignroom,lockupexpiration,blocksales/buysthatoccurafterthecutoffdatesdescribedinSection
3.1.9(i)and(iii)above,additionstotheStandard/SmallCapIndex,aswellasdeletionsfromtheStandard
IndexaspartoftheIndexReview.

MSCI monitors the full company market capitalization (issuer level) of the Market Investable Equity
Universes on a monthly basis as a part of its ongoing maintenance. As a reminder, the full company
market capitalization is the aggregated market capitalization of all listed and unlisted securities of an
issuer.Additionalsecuritiesidentifiedforexistingindexconstituentsbythetenthbusinessdayofagiven
monthwillbeintroducedonthethirdbusinessdayofthefollowingmonth.PleasenotethatNumberof
Shares (NOS), Foreign Inclusion Factors (FIF) and weights in the MSCI indices are not affected by the
updates.

PleaserefertoAppendixVII:PolicyRegardingMarketClosuresDuringIndexReviewsfordetailsonMSCIs
policyregardingmarketclosuresduringindexreviews.


IndexMethodology
May2013
3.2. QuarterlyIndexReviewsinFebruaryandAugust

QIRsaredesignedtoensurethattheindicescontinuetobeanaccuratereflectionoftheevolvingequity
marketplace. This is achieved by a timely reflection of significant market driven changes that were not
captured in the index at the time of their actual occurrence but are significant enough to be reflected
beforethenextSAIR.QIRsmayresultinadditionsordeletionsduetomigrationtoanotherSizeSegment
Index, and changes in FIFs and in NOS. Only additions of significant new investable companies are
considered, and only for the Standard Index. The buffer zones used to manage the migration of
companiesfromonesegmenttoanotherarewiderthanthoseusedintheSAIR.Thestyleclassificationis
reviewedonlyforcompaniesthatarereassignedtoadifferentsizesegment.
3.2.1. QuarterlyIndexReviewofSizeSegmentMigrations

DuringeachQuarterlyIndexReview,thefollowingindexmaintenanceactivitiesareperformedtoidentify
migrationsfromoneSizeSegmenttoanother:
UpdatingtheGlobalMinimumSizeReferencesandGlobalMinimumSizeRanges.
ReassessingtheMarketSizeSegmentCutoffs.
AssigningcompaniestotheSizeSegmentIndices.
AssessingconformitywithFinalSizeSegmentInvestabilityRequirements.
3.2.1.1. UpdatingtheGlobalMinimumSizeReferencesandGlobalMinimumSizeRanges
TheGlobalMinimumSizeRangeisresetattheQIRbyrecalculatingtheGlobalMinimumSizeReference
based on the existing DM Investable Equity Universe, excluding any newly eligible companies, as
describedinAppendixVIII:UpdatingtheGlobalMinimumSizeReferencesandRanges.
3.2.1.2. ReassessingtheMarketSizeSegmentCutoffs

TheMarketSizeSegmentCutoffisdeterminedasthefullmarketcapitalizationofthecompanyrankedin
theMarketInvestableEquityUniverse,excludinganynewlyeligiblecompanies,attheSegmentNumber
ofCompaniesfortherelevantsegment.

ThebufferrangesattheQIRaresetupto+80%aboveanddownto50%belowtheMarketSizeSegment
Cutoffbetweentwosizesegments.
3.2.1.3. AssigningCompaniestoAppropriateSizeSegments
DuringaQIR,companiesintheMarketInvestableEquityUniversearepreliminarilyassignedtotheSize
SegmentIndicesuntiltheSegmentNumberofCompaniesisachievedwiththefollowingpriority:

IndexMethodology
May2013
Current constituents of a given SizeSegment Index, as well as companies assigned to this Size
Segment during last Index Review that failed the Final SizeSegment Investability Requirements,
greaterthantheMarketSizeSegmentCutoff.
Companies in the lower SizeSegment Index, as well as companies assigned to this SizeSegment
duringlastIndexReviewandfailedtheFinalSizeSegmentInvestabilityRequirements,greaterthan
theupperbufferthresholdofthelowersizesegment.
Current constituents of a given SizeSegment Index, as well as companies assigned to this Size
SegmentduringthelastIndexReviewthatfailedtheFinalSizeSegmentInvestabilityRequirements,in
the lower buffer of the SizeSegment in descending capitalization order, until the threshold of the
bufferisreached.
Thelargestcompaniesfromtheupperbufferofthenextlowersizesegment.

However, companies that would migrate from the lower SizeSegment Index but are below the lower
bound of the Global Minimum Size Range, as well as companies that would migrate from upper Size
SegmentbutareabovetheupperboundoftheGlobalMinimumSizeRange,areretainedintheircurrent
SizeSegment.TheSegmentNumberofCompaniesisincreasedordecreasedaccordingly.

Once companies have been assigned to the Standard, Large and Investable Market Indices, companies
arethenassignedtotheMidandSmallCapIndices.TheMidCapIndexcomprisesthecompaniesthatare
intheStandardIndexbutnottheLargeCapIndex.TheSmallCapIndexcomprisesthecompaniesthatare
intheInvestableMarketIndexbutnotintheStandardIndex.
3.2.1.4. AssessingConformitywithFinalSizeSegmentInvestabilityRequirements

Once the securities are assigned to the appropriate SizeSegment Indices, the securities that migrate
from the Small Cap Indices to the Standard Indices are evaluated for compliance with the additional
investabilityrequirementsfortheStandardIndex.PleaserefertoSubsection2.3.5:ApplyingFinalSize
SegmentInvestabilityRequirementsandIndexContinuityRules.

Inaddition,anexistingconstituentoftheStandardIndexcanremainintheSizeSegmentonlyif:
The 3month ATVR and Frequency of Trading are at least 10% and 80% respectively for
DevelopedMarkets
The 3month ATVR and Frequency of Trading are at least 7.5% and 80% respectively for
EmergingMarkets
AnexistingconstituentoftheSmallCapIndex,notmigratingtotheStandardSegmentcanremaininthe
SizeSegmentonlyif:
The 3month ATVR and Frequency of Trading are at least 5% and 80% respectively for
DevelopedMarkets
The3monthATVRandFrequencyofTradingareatleast5%and70%respectivelyforEmerging
Markets


IndexMethodology
May2013
Ifanexistingconstituent,representedbyalocallistingnolongermeetstheaboveliquidityrequirements,
liquid Depositary Receipts that do meet such requirements can be considered for inclusion. Depositary
Receiptscanonlybeconsiderediftheyarelistedinthesamegeographicalregionasthelocallistingof
theunderlyingsecurity.

If an existing constituent of a Standard Index in Emerging Markets fails to meet the liquidity
requirements, but has a weight of more than 10% in the respective country index and its free float
adjusted market capitalization is above 0.5 times the Global Minimum Size Reference for Emerging
Markets, then such constituent will remain in the index. However, MSCI would apply a Liquidity
AdjustmentFactorof0.5totheweightofthesecurity,andinthesubsequentindexreview,MSCI:
Would delete the security from the index if the security does not meet all liquidity
requirements for existing constituents calculated after applying the Liquidity Adjustment
Factor;or
Would maintain the security in the GIMI and remove the Liquidity Adjustment Factor if the
security meets all the liquidity requirements for new constituents, calculated before applying
theLiquidityAdjustmentFactorfortwoconsecutiveSemiAnnualIndexReviews;or
WouldcontinuemaintainingthesecurityintheGIMIwiththeLiquidityAdjustmentFactorof0.5
ifnoneoftheaboveconditionsaremet.

SimilarlytotheforeignroomtreatmentduringSAIRs,currentconstituentsecuritiesforwhichthereisless
than 25% foreign room may have their weight adjusted by the application of an adjustment factor to
reflecttheiractuallevelofforeignroom.

The postreview adjustment factor depends on the current adjustment factor and the actual level of
foreignroomofthesecurities,asshowninthetablebelow:

Postreviewadjustmentfactor
foreignroom>= 15%<=foreign 7.5%<=foreign 3.75%<=foreign foreignroom

25% room<25% room<15% room<7.5% <3.75%
Currentadjustment
factor=1 1 1 0.5 0.25 0
Currentadjustment
factor=0.5 1 0.5 0.5 0.25 0
Currentadjustment
factor=0.25 1 0.5 0.25 0.25 0
Iftheforeignroomofanexisting constituentdecreasesbelow3.75%andthesecuritydoesnothavea
liquideligibleDepositaryReceipt(DR),thentheadjustmentfactorequals0.10

10
Theadjustmentfactorequals0for(i)IndiansecuritiesincludedintheReserveBankofIndiasofficiallistofsecuritiesforwhichthecautionlimitorbanlimithas
beenreached;(ii)moregenerally,basedoninformationavailablefromthecountryregulatoryauthority,forsecuritieswherefurtherpurchasearerestricteddueto
foreignownershiprestriction.

IndexMethodology
May2013

Iftheforeignroomofanexistingconstituentdecreasesbelow3.75%andthesecurityhasaliquideligible
DR, then the adjustment factor equals 0.25. Eligible DRs are limited to level II and level III American
Depositary Receipts (ADR) listed on the New York Stock Exchange or the NASDAQ, Global Depositary
Receipts(GDR)aswellasADRslistedontheLondonStockExchange.DRsaredeemedliquidiftheir12
monthATVRisabove20%forDevelopedMarketsand15%forEmergingMarketsandFrontierMarkets.

ForeignroomlevelwillbereviewedonaquarterlybasiscoincidingwiththeregularMSCIIndexReviews.
Generally,anupwardmovementoftheadjustmentfactorforexistingconstituentsfollowingaprevious
reduction in foreign room will only be considered 12 months after the weight reduction unless the
upwardmovementoftheadjustmentfactorisprimarilydrivenbyachangeinFOL.Forasecuritythatis
deletedfromtheindexasaresultofhavingaforeignroomlowerthan3.75%,itsindexinclusionwillonly
bereconsidered12monthsafteritsdeletion.

SecuritiesthatarepartoftheMarketInvestableEquityUniverse,butdidnotmeetadditionalinvestability
requirements at the previous SAIR are not added to the Investable Market Indices as part of the QIR,
unlesstheymeetthecriteriaoutlinedinsection3.2.2.
3.2.2. QuarterlyIndexReviewofAdditionofCompaniesCurrentlynotConstituentsoftheInvestableMarketIndices

Securities that are currently not constituents of the Investable Market Indices and that meet the
investabilityscreensdescribedinSubsection2.2,includinglargeIPOsthatwerenotaddedearlier,andin
additionmeettherequirementslistedbelow,areaddedtotheStandardIndex.

Afullmarketcapitalizationthatexceeds1.8timesboththeInterimMarketSizeSegmentCutoffand
thelowerboundoftheGlobalMinimumSizeRange
A free floatadjusted market capitalization that exceeds 1.8 times both onehalf the Interim Market
SizeSegmentCutoffandonehalfthelowerboundoftheGlobalMinimumSizeRange
A12monthATVRthatexceedstheMinimumMarketRelativeLiquidityRequirementfortheStandard
Index

ThesecompaniesareassignedtotheLargeCapIndexiftheirfullmarketcapitalizationexceedstheLarge
CapCutoff;theyareassignedtotheMidCapIndexotherwise.

Inaddition,IPOseligibleforearlyinclusionaccordingtoSubsection3.3.4.1,andforwhichtheeffective
date of inclusion is either 5 days before the effective date of the QIR or 3 days after, will be made
effectivetocoincidewiththeQIR.Forexample,whentheeffectivedateofinclusionoftheIPOisAugust
29(3businessdaysbeforeSeptember1),whiletheeffectivedateoftheQIRisSeptember1,theIPOwill
beaddedeffectiveSeptember1.


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May2013
Forcompaniestradingonaconditionalbasis(whenissuedtrading)priortotheirlistingandunconditional
trading, MSCI intends to assess the inclusion of the company in the MSCI Indices on its first day of
conditionaltrading.
3.2.3. QuarterlyIndexReviewofChangesinFIFs

SignificantchangesinfreefloatestimatesandcorrespondingFIFsarereflectedintheindicesattheQIRs.
Thesechangesmayresultfromthefollowing:

Large market transactions involving changes in strategic ownership, which are publicly
announced (for example transactions made by way of immediate bookbuilding and other
processessuchasblocksalesorblockbuys).11
Secondary offerings that were not reflected immediately in the indices given the lack of
sufficientnoticeorsmallsize(lessthan5%ofthesecuritysnumberofshares).
IncreasesinForeignOwnershipLimits(FOLs).
Decreases in FOLs which did not require foreign investors to immediately sell shares in the
market.
Reestimations of free float figures resulting from the reclassification of shareholders from
strategictononstrategic(andviceversa)and/orupdatestonumberofsharesoutstanding.
Public disclosure of the new shareholder structure for companies involved in mergers,
acquisitionsorspinoffs,wheredifferentfromtheproformafreefloatestimateatthetimeof
theevent.
Large conversions of exchangeable bonds and other similar securities into already existing
shares.
End of lockup periods or expiration of loyalty incentives for otherwise nonstrategic
shareholders, which determine the reclassification of these shareholdings and result in an
increaseinfreefloat.
Other events of similar nature. However, FIF changes resulting from updates in NonVoting
DepositaryReceipts(NVDRs)inThailandareappliedintheindicesonlyonasemiannualbasis
atSAIRsandnotquarterly.

FIFchangesresultingfromachangeinfreefloatoflessthan1%willnotbeimplemented,exceptincases
ofcorrections.
In general, the above mentioned changes are implemented as part of a given regular Index Review if
theytakeplacepriortothestandarddatacutoffdate(asdefinedinSubSection3.1.9forSAIRsand3.2.5
forQIRs)ofthatIndexReview.However,changesintheFIFduetoblockbuys/blocksalesthatmeetthe
conditions described in footnote 11, and large conversions may be implemented as part of the Index

11
ThesechangeswillbeimplementedaspartoftheIndexReviewfollowingthecompletionoftheeventprovidedtheysatisfyoneofthefollowingconditionswhen
theeventiscompleted:
TheabsolutesizeoftheFIFchangeis0.15ormore,or
ThechangeinfreefloatadjustedmarketcapitalizationresultingfromtheFIFchangerepresentsatleast:
- USD1billionforsecuritiesclassifiedintheUS.
- USD500millionforsecuritiesclassifiedinDevelopedMarketsotherthantheUS.
- USD200millionforsecuritiesclassifiedintheEmergingMarkets.
ChangesthatdonotmeettheaboveconditionswillbeimplementedaspartoftheMaySemiAnnualIndexReview

IndexMethodology
May2013
Review even if they take place after the regular data cut off date. Such changes can be announced by
MSCIuntil3businessdaysbeforetheIndexRevieweffectivedate.
3.2.4. QuarterlyIndexReviewofChangesinNumberofShares(NOS)

SmallchangesinNOS,typicallylessthan5%ofthesharesoutstanding,aregenerallyupdatedattheQIR
ratherthanatthetimeofthechange,tominimizeindexturnoverprovidedtheabsoluteNOSchangeis
greaterthan1,000sharesandpercentageNOSchangeisgreaterthan0.02%.Changesmayoccurdueto:
Exerciseofoptionsorwarrantsandemployeestockoptionplans.
Conversion of convertible bonds or other instruments, including periodic conversion of
preferredstocks,andsmalldebttoequityswaps.
Periodicsharebuybacksandcancellationoftreasuryshares.
Increases in a securitys number of shares resulting from acquisition of nonlisted companies
andconversionofunlistedshares.
Smallequityofferings.
Othereventsthatcouldnotbeimplementedonorneartheeffectivedates,andwherenoPrice
AdjustmentFactor(PAF)isnecessary.
Sharecancellations.
primaryequityofferingsandsecondaryofferingstypicallylessthan5%ofthesecuritysnumber
ofsharesforindexconstituentsexceptformicrocapsegment.
primary equity offering typically less that 25% of the securitys number of shares for nonUS
microcapsecurities.
UpdatesinnumberofsharesimplementedaspartoftheQIRcouldalsotriggerareviewofthefreefloat
ofthesecurity.AnyresultantchangeinFIFwouldbeimplementedsimultaneously.
In general, the above mentioned changes are implemented as part of a given regular Index Review if
theytakeplacepriortothestandarddatacutoffdate(asdefinedinSubSection3.1.9forSAIRsand3.2.5
forQIRs)ofthatIndexReview.However,changesintheNOSduetoeventssuchas,butnotlimitedto,
conversions, acquisition of unlisted companies and large cancellation of treasury shares may be
implementedaspartoftheIndexRevieweveniftheytakeplaceaftertheregulardatacutoffdate.Such
changescanbeannouncedbyMSCIuntil3businessdaysbeforetheIndexRevieweffectivedate.
3.2.5.DateofDataUsedforQuarterlyIndexReview

Ingeneral,thestandarddatacutoffdatesfortheFebruaryandAugustQIRsareasfollows:
(i) fordatausedforincorporatingallFIFandNOSchangestotheexistingEquityUniverse,theend
ofNovemberfortheFebruaryQIRandtheendofMayfortheAugustQIR;
(ii) forthepricesusedforcalculatingmarketcapitalizationgenerallyanyoneofthelast10business
daysofJanuaryfortheFebruaryQIRandofJulyfortheAugustQIR,respectively;
(iii) fordatausedforincorporatingallforeignroomchangestoexistingEquityUniverse,theendof
DecemberfortheFebruaryQIRandtheendofJunefortheAugustQIR;and
(iv) fordatausedforcalculationofliquidityrequirements,theendofDecemberfortheFebruary
QIRandofJunefortheAugustQIR,respectively.


IndexMethodology
May2013
AbusinessdayisdefinedasadayfromMondaytoFridaywheremarketscumulativelyconstitutingmore
than80%oftheMSCIAllCountriesWorldIndexmarketcapitalizationareexpectedtobeopen.

As a general rule, price movements after the price cutoff date will not impact the results of the index
review.However,incasesofextraordinaryeventsornewsrelatedtoaspecificcompanyidentifiedasa
migrationbetweenthesizesegmentsorasanadditiontotheIMIbasedontheindexreviewpricecutoff
date MSCI may decide not to change the companys sizesegment allocation. In such instances, the
company would either be maintained in its current sizesegment or not added to the IMI. Examples of
suchextraordinaryeventsornewsareallegationsoffraud,falsificationofaccountingdataornewsona
takeoverbidresultinginasignificantreduction(orincrease)incompanysmarketcapitalizationbetween
the index review price cutoff date and the announcement date or/and in its suspension for an
undetermined period. Market cap fluctuations or suspensions of trading after the index review
announcementdatetypicallywouldnotresultinthereversionofanalreadyannounceddecisiononthe
companys sizesegment allocation. The policy on implementation of the index review changes for
securities suspended around the index review implementation dates is stated in Appendix VII of this
document.

Insomecases,theFIFandtheNOSofasecuritymaybemonitoredandupdatedrightuptothecutoff
datefortheprices(describedinSection3.2.5(ii)above).Suchcasestypicallyincludesecuritieswithlow
foreignroom,lockupexpiration,blocksales/buysthatoccurafterthecutoffdatesdescribedinSection
3.2.5(i)and(iii)above,additionstotheStandard/SmallCapIndex,aswellasdeletionsfromtheStandard
IndexaspartoftheIndexReview.

MSCI monitors the full company market capitalization (issuer level) of the Market Investable Equity
Universes on a monthly basis as a part of its ongoing maintenance. As a reminder, the full company
market capitalization is the aggregated market capitalization of all listed and unlisted securities of an
issuer.Additionalsecuritiesidentifiedforexistingindexconstituentsbythetenthbusinessdayofagiven
monthwillbeintroducedonthethirdbusinessdayofthefollowingmonth.PleasenotethatNumberof
Shares (NOS), Foreign Inclusion Factors (FIF) and weights in the MSCI indices are not affected by the
updates.

PleaserefertoAppendixVII:PolicyRegardingMarketClosuresDuringIndexReviewsfordetailsonMSCIs
policyregardingmarketclosuresduringindexreviews.
3.3. OngoingEventRelatedChanges

Ongoing eventrelated changes to the indices are the result of mergers, acquisitions, spinoffs,
bankruptcies, reorganizations and other similar corporate events. They can also result from capital
reorganizationsintheformofrightsissues,bonusissues,publicplacementsandothersimilarcorporate
actionsthattakeplaceonacontinuingbasis.Thesechangesgenerallyarereflectedintheindicesatthe
timeoftheevent.


IndexMethodology
May2013
Theseeventscanaffectmanyaspectsofanindexanditsconstituents,includinginclusionordeletionof
companies outside of the Index Reviews, weight changes due to changes in FOLs, FIFs, NOS, etc., and
changesinsize,styleand/orindustryclassification.

To evaluate the impact of changes resulting from events on the assignment of companies into size
segments, it is necessary to maintain the Market SizeSegment Cutoffs and Segment Number of
Companiesonadailybasisasdescribedbelow.

Thehandlingofongoingeventrelatedchangescanbeclassifiedintwobroadcategories:

Corporateeventsaffectingexistingindexconstituents,describedinSubsection3.3.3below.
Corporateeventsaffectingnonindexconstituents,describedinSubsection3.3.4below.

ThetechnicaldetailsrelatingtothehandlingofspecificcorporateeventtypescanbefoundintheMSCI
CorporateEventsMethodologybookavailableat:
http://www.msci.com/eqb/methodology/meth_docs/MSCI_Nov11_CorporateEventsMethodology.pdf
3.3.1. DeterminingtheInterimMarketSizeSegmentCutoffsforDailyMaintenance

Forthepurposeofdeterminingeligibilityforearlyinclusionofsecurities,suchassignificantIPOs,and/or
assigning a company and its securities post a corporate event, e.g., mergers and spinoffs, to the
appropriate SizeSegment Index an Interim SizeSegment Cutoff is used. To derive this number the
followingstepsarefollowed:
The Global Minimum Size References and Global Minimum Size Ranges of the Large Cap, the
Standard,andtheInvestableMarketIndicesareupdateddailyasdescribedinAppendixVIII:Update
ofGlobalMinimumSizeReferencesandRanges.
On a daily basis, each Market SizeSegment Cutoff is set to be the full market capitalization of the
companyoftherankequaltotheSegmentNumberofCompaniesforthatSizeSegmentintheMarket
InvestableEquityUniverse.
TheInterimMarketSizeSegmentCutoffissetto:
ThelowerboundoftheGlobalMinimumSizeRange,iftheMarketSizeSegmentCutoffisbelow
thelowerbound.
The upper bound of the Global Minimum Size Range, if the Market SizeSegment Cutoff is
abovetheupperbound.
TheMarketSizeSegmentCutoff,ifitiswithintheGlobalMinimumSizeRange.

ThedailyvaluesfortheMarketSizeSegmentCutoffs,theSegmentNumberofCompaniesandtheGlobal
MinimumSizeRangearebasedondatafromtheprevioustradingday.
3.3.2. UpdatingtheSegmentNumberofCompanies


IndexMethodology
May2013
If a company is added or deleted from a sizesegment as a result of a corporate event, the Segment
NumberofCompaniesiscorrespondinglyincreasedordecreased.
3.3.3. CorporateEventsAffectingExistingIndexConstituents

Corporateeventscanaffectexistingindexconstituentsinvariousways:
Changes in Foreign Inclusion Factor (FIF), number of shares or industry classification for existing
constituents.
Changesinsizeorstylesegmentclassificationasaresultofalargecorporateevent.
Earlyinclusionsofnonindexconstituents.
Earlydeletionsofexistingindexconstituents.
3.3.3.1. ChangesinFIF,NumberofSharesorIndustryClassificationforExistingConstituents

Inordertoensurethattheindexaccuratelyreflectstheinvestabilityoftheunderlyingsecurities,itisa
generalpolicytocoordinatechangesinnumberofshareswithchangesinFIF.

Whentwocompaniesmerge,oracompanyacquiresorspinsoffanothercompany,thefreefloatofthe
resultingentityisestimatedonaproformabasis,usingtheproformanumberofsharesifapplicable,and
the corresponding FIF is applied simultaneously with the event. When there is a subsequent public
disclosureregardingthenewshareholderstructure,whichresultsinadifferentfreefloatestimationthan
thatmadeatthetimeoftheevent,theFIFwillbeupdatedatthenextIndexReview.Othercorporate
events,whichresultinachangeinshareholderstructureorFOLsandFIFs,willtypicallybereflectedin
the indices simultaneously with the implementation of the event in the index. Any other pending
shareholderinformationupdatesorreclassificationswillgenerallyalsobereflectedintheproformafree
floatestimationrelatedtotheevent.

DecreasesinFOLsinwhichforeigninvestorsareobligedtoimmediatelysellsharesinthemarketwillbe
reflectedintheindicesassoonaspossible.

Changes in NOS and FIF resulting from primary equity offerings representing more than 5% of the
securitysnumberofsharesaregenerallyimplementedasofthecloseofthefirsttradingdayofthenew
shares,ifallnecessaryinformationisavailableatthattime.Otherwise,theeventisimplementedassoon
as practicable after the relevant information is made available. A primary equity offering involves the
issuanceofnewsharesbyacompany.

Changes in NOS and FIF resulting from primary equity offerings representing less than 5% of the
securitys number of shares are deferred to the next regularly scheduled Index Review following the
completionoftheevent.


IndexMethodology
May2013
For public secondary offerings of existing constituents representing more than 5% of the securitys
numberofshares,wherepossible,MSCIwillannouncethesechangesandreflectthemshortlyafterthe
results of the subscription are known. Secondary public offerings that, given lack of sufficient notice,
were not reflected immediately will be reflected at the next Index Review. Secondary offerings involve
the distribution of existing shares of current shareholders in a listed company and are usually pre
announcedbyacompanyorbyacompanysshareholdersandopenforpublicsubscriptionduringapre
determinedperiod.

ForUSsecurities,increasesinNOSandchangesinFIFresultingfromprimaryequityofferingsandfrom
secondaryofferingsrepresentingatleast5%ofthesecuritysnumberofshareswillbeimplementedas
soonaspracticableaftertheofferingispriced.Generally,implementationtakesplaceasofthecloseof
thesamedaythatthepricingofthesharesismadepublic.Ifthisisnotpossible,theimplementationwill
takeplaceasofthecloseofthefollowingtradingday.

Changes in industry classification resulting from a corporate event are generally implemented
simultaneouslywiththeevent.Otherchangesinindustryclassificationsareimplementedattheendof
themonth.
3.3.3.2. ChangesinSizeorStyleSegmentClassificationasaResultofaLargeCorporateEvent

Inordertoreflectsignificantchangesinthemarketcapitalizationofexisting constituents inthe Global
Investable Market Indices and in the World All Cap Indices in a timely fashion while minimizing index
turnover,theSizeSegmentclassificationofasecurityisreviewedsimultaneouslywiththeevent,ifthe
marketcapitalizationchangeimpliedbytheevent,includingpotentialupdateinthenumberofsharesfor
thesecurity,isdeemedsignificant.
Asignificant market capitalizationchangeisdefinedasanincreaseof50%orgreater,oradecreaseof
33%ormore,relativetothecompanysfullmarketcapitalizationbeforetheevent.

The companys postevent full market capitalization is then compared to the Interim SizeSegment
Cutoffsinordertodeterminetheclassificationofthatsecurityintheappropriatesizesegment.Thefinal
decisionisgenerallytakenatthetimeofthecompletionoftheeventor,iftheeventisnoteffectiveyet,
atthetimeoftheconfirmedannouncementandisbasedonthelatestmarketinformationavailableat
thetimeoftheanalysis,includingthelatestNOS,FIF,andmarketprices.
Inaddition,thesecuritiesmustpasstheinvestabilityscreensdescribedinSubsection2.2.
Inparticular,thefreefloatadjustedmarketcapitalizationofsecuritiesaddedtotheStandardIndexmust
beatleast50%oftheStandardIndexInterimSizeSegmentCutoff.Moreover,thesecuritiesaddedtothe
StandardIndexmustmeetthesizesegmentinvestabilityrequirementsfortheStandardIndexdescribed
inSubsections2.3.5.2and2.3.5.3.However,insomesituations,MSCImaydecidetoproceedwiththe
addition of the security even if the conditions described under 2.3.5.2 are not fully met, for example
whenthecorporateeventislikelytoincreasethefutureliquidityofasecurity.


IndexMethodology
May2013
ForasecuritytobeaddedtotheSmallCapIndex,thefreefloatadjustedmarketcapitalizationmustbeat
least50%oftheSmallCapInterimSizeSegmentCutoff.

However,aWorldMicroCapIndexconstituentwillnotbeconsideredforasizesegmentmigrationtothe
SmallCapIndexorStandardIndexduetoasignificantmarketcapitalizationincreaseattimeoftheevent
but at Index Reviews, unless there is a merger or acquisition of a Small Cap Index constituent or a
StandardIndexconstituentwithorbyaWorldMicroCapIndexconstituent.

Ifthecompanyisaddedto,orremovedfromasizesegment,thenitresultsinanincreaseoradecrease
intheSegmentNumberofCompaniesforthesizesegment.

Forthesesignificantevents,ifthepostevententitymovesfrombeinganonconstituenttoaconstituent
oftheGlobalInvestableMarketIndices,thestylecharacteristicsoftheaffectedsecuritiesarereviewed.
ThesameappliesforthepostevententitythatmigratesfromtheWorldMicroCapIndexortheSmall
CapIndextoanupperSizeSegmentIndex.IfthepostevententitymovesfromtheStandardIndextothe
SmallCapIndexorremainsinthesameSizeSegmentIndex(withtheLargeandMidCapIndicesbeing
consideredasonesizeindex),thestylecharacteristicsoftheaffectedsecuritiesarenotreviewed.Ifthe
postevententitymovesfromtheStandardIndexorSmallCapIndextotheWorldMicroCapIndex,the
style characteristics of the affected securities are removed as there are no style characteristics for the
WorldMicroCapconstituents.

The guidelines regarding significant market capitalization changes described above apply in most
corporateeventscases.Forcertaincorporateeventswheretheoutcomeisuncertainsuchasacquisitions
forsharesornonrenounceablerightsissues,orcombinationsofdifferenttypesofcorporateevents,or
other exceptional cases, MSCI will determine the most appropriate implementation method and
announceitpriortothechangesbecomingeffectiveintheindices.

3.3.3.3. EarlyInclusionsofNonIndexConstituents
Whenthereisacorporateeventaffectingindexconstituents,nonindexconstituentsthatareinvolvedin
theeventaregenerallyconsideredforimmediateinclusionintheMSCIGlobalInvestableMarketIndices,
aslongastheymeetalltheindexconstituenteligibilityrulesandguidelinesdescribedinSubsections2.2
and2.4withtheexceptionofthelengthoftradingandliquidityscreens.

Forexample,ifanonconstituentcompanyacquiresaconstituentcompany,theconstituentcompanys
securitiesmaybereplacedbythesecuritiesoftheacquiringcompany.Similarly,ifaconstituentcompany
mergeswithanonconstituentcompany,themergedcompanymayreplacetheconstituentcompany.In
addition,ifaconstituentsshareclassisconvertedintoanothershareclassthatisneworcurrentlynotin
theindex,thisnewshareclasscanbeincludedintheindextoreplacethecurrentshareclass.


IndexMethodology
May2013
Such nonindex constituents are generally included in the same sizesegment and Value and Growth
Indices as the affected index constituents, since they are considered to be a continuation of the index
constituents.However,ifthedifferencebetweentheposteventmarketcapitalizationofthenonindex
constituents and the respective index constituents is deemed significant, as discussed in Subsection:
3.3.3.2,asizesegmentreviewisconductedforthenonindexconstituents.Astylereviewisconductedif
the nonindex constituents are included to different SizeSegment Indices from the affected index
constituents.Thereafter,thenonindexconstituentsareincludedintheappropriateSizeSegmentIndices
bycomparingthecompanysposteventfullmarketcapitalizationwiththeInterimMarketSizeSegment
Cutoff, and in the appropriate style indices based on their style attribution within the relevant Size
SegmentIndices.Inparticular,thecompanyposteventfullmarketcapitalizationmustbeaboveatleast1
time the Interim Market SizeSegment Cutoff and the security free floatadjusted market capitalization
mustbeaboveatleast50%oftheInterimMarketSizeSegmentCutoff.

Securitiesspunofffromexistingconstituentsarealsoconsideredforinclusionatthetimeoftheevent.A
systematicsizesegmentclassificationreviewisconductedforallspunoffsecuritiesfromexistingGlobal
Investable Market Index constituents provided that they pass all the investability screens described in
Subsection 2.2 with the exception of the length of trading and liquidity screens. In addition, the free
floatadjustedmarketcapitalizationofsecuritiesaddedtotheStandardIndexmustbeatleast50%ofthe
StandardIndexInterimSizeSegmentCutoff.ForasecuritytobeaddedtotheSmallCapIndex,thefree
floatadjustedmarketcapitalizationmustbeatleast50%oftheSmallCapInterimSizeSegmentCutoff.
SecuritiesspunofffromtheWorldMicroCapIndexarealsoconsideredforinclusionattimeoftheevent,
butonlyfortheWorldMicroCapIndexsizesegment.ForasecuritytobeaddedtotheWorldMicroCap
Index,thefreefloatadjustedmarketcapitalizationmustbeatleast50%oftheMicroCapMinimumSize
RequirementforExistingConstituentsasdescribedinSubsection4.1.2Astylereviewisperformedfor
spunoffsecuritiesiftheyareincludedindifferentSizeSegmentIndicesfromthespinningoffsecurities
and/orthespinningoffsecuritiesmovetootherSizeSegmentIndicesatthetimeoftheevent.Nostyle
reviewsareperformedforspunoffsecuritiesthatareconsideredtobeincludedintheWorldMicroCap
Index,astherearenostylecharacteristicsfortheWorldMicroCapconstituents.Thereafter,thespunoff
securitiesareincludedintheappropriateSizeSegmentIndicesbycomparingthecompanyspostevent
full market capitalization with the Interim Market SizeSegment Cutoff, and in the appropriate style
indicesbasedontheirstyleattributionwithintherelevantSizeSegmentIndices.
3.3.3.4. EarlyDeletionsofExistingConstituents

Securitiesofcompaniesthatfileforbankruptcy,companiesthatfileforprotectionfromtheircreditors
and/or are suspended and for which a return to normal business activity and trading is unlikely in the
near future will be removed from the MSCI Global Investable Market Indices as soon as practicable.
Companiesthatfailstockexchangeslistingrequirementswithannouncementsofdelistingfromthestock
exchanges will be treated in the same way. When the primary exchange price is not available, the
securitieswillbedeletedatanoverthecounterorequivalentmarketpricewhensuchapriceisavailable
anddeemedrelevant.Ifnooverthecounterorequivalentpriceisavailable,thecompanywillbedeleted
atthesmallestprice(unitorfractionofthecurrency)atwhichasecuritycantradeonagivenexchange.


IndexMethodology
May2013
Securitiesmayalsobeconsideredforearlydeletioninothersignificantcases,suchasdecreasesinfree
floatandFOLs,orwhenaconstituentcompanyacquiresormergeswithanonconstituentcompanyor
spinsoffanothercompany.

Inpractice,whenaconstituentcompanyisinvolvedinacorporateeventwhichdecreasesbymorethan
33%thecompanysfullmarketcapitalization,thesecuritiesoftheconstituentcompanyareconsidered
forearlydeletionfromtheindicessimultaneouslywiththeevent.Securitiesarealsoconsideredforearly
deletionincasesofcorporateeventswheretheForeignInclusionFactor(FIF)ofthesecuritydecreasesor
isexpectedtodecreasebelow0.15.
Moreover, existing constituents of the Standard Index with a FIF already lower than 0.15 may be
consideredforearlydeletionsimultaneouslywithaneventiftheFIFfurtherdecreasesduetotheevent.

Incasesofsecuritiesthatareconsideredforearlydeletion,asecurityisremovedfromtheindicesifdue
totheeventthesecurityfallsunderoneofthefollowingscenarios:
The security no longer passes the investability screens described in Subsections 2.2 and 4.1 (the
securitywillbeallocatedtotheWorldMicroCapIndexifitnolongerpassesthescreensdescribedin
Subsection2.2butstillpassesthescreensdescribedinSubsection4.1).
The security is a constituent of the Standard Index and would be maintained in the Standard Index
basedonits companysfullmarket capitalizationaftertheevent,howeverits floatadjustedmarket
capitalizationdoesnotmeet2/3rdofonehalfoftheStandardIndexInterimSizeSegmentCutoff.12
The security is a constituent of the Standard Index and would be migrated to the Small Cap Index
basedonits companysfullmarket capitalizationaftertheevent,howeverits floatadjustedmarket
capitalizationdoesnotmeetonehalfoftheSmallCapIndexInterimSizeSegmentCutoff.
ThesecurityisaconstituentoftheSmallCapIndexanditsfloatadjustedmarketcapitalizationdoes
notmeet2/3rdofonehalfoftheSmallCapIndexInterimSizeSegmentCutofffollowingtheevent.

Conversionsofaconstituentsshareclassintoanothershareclassmayalsoresultinthedeletionofone
ormoreshareclassesfromtheindices.

Forsecuritiesthataresuspended,themarketpriceimmediatelypriortothesuspensionwillbecarried
forwardduringthesuspensionperiod.
3.3.4.CorporateEventsAffectingNonIndexConstituents
3.3.4.1. IPOsandOtherEarlyInclusions

Ingeneral,newlylistedequitysecuritiesavailabletoforeigninvestorsareconsideredforinclusioninthe
MSCI Global Investable Market Indices, according to MSCIs Global Investable Market Indices
methodology rules and guidelines, at the time of the Index Reviews. However, for IPOs, which are

12
IftheStandardIndexconstituenthasaFIFlowerthan0.15aftertheevent,theminimumfloatadjustedmarketcapitalizationrequirementis2/3rdofthe1.8times
onehalfoftheStandardIndexInterimSizeSegmentCutoff.

IndexMethodology
May2013
significantinsizeandmeetalltheMSCIinclusioncriteria,anearlyinclusion,outsideoftheIndexReviews,
maybeconsideredforinclusionintheStandardIndex.IfthedecisionismadetoincludeanIPOearly,the
inclusionwillgenerallybecomeeffectiveafterthecloseofthesecuritystenthdayoftrading.However,in
certaincases,anotherdatemaybechosenfortheinclusiontoreduceturnover,forexample,wherethe
normalinclusiondateisclosetotheeffectivedateofthenextIndexReview,asdescribedinSubsections
3.1.6.1(fortheSemiAnnualIndexReviews)and3.2.2(fortheQuarterlyIndexReviews).

Forcompaniestradingonaconditionalbasis(whenissuedtrading)priortotheirunconditionaltrading,
MSCI intends to assess the inclusion of the company in the MSCI Indices on its first day of conditional
trading.

In order for an IPO and other newly eligible securities to qualify for an early inclusion to the Standard
Index,asecuritymustmeettheindexconstituenteligibilityrulesandguidelinesdescribedinSubsection
2.2withtheexceptionofthelengthoftradingandliquidityscreens,meetthesizesegmentinvestability
requirementsdescribedinSubsection2.3.5.1andhaveacompanyfullmarketcapitalizationofatleast
1.8timestheInterimMarketSizeSegmentCutoffandfreefloatadjustedmarketcapitalizationofatleast
1.8timesonehalfoftheInterimMarketSizeSegmentCutoffasofthecloseofitsfirstorsecondtrading
day.13

Securitiesmayalsobeconsideredforearlyinclusioninothersignificantcases,includingbutnotlimitedto
thoseresultingfromrestructuringintheindustrygivingrisetoalargenewcompanyoralargeprimaryor
secondarypublicofferingofanalreadylistedsecurityifthesizeoftheofferingexceedstheIPOthreshold
of1.8timesonehalfoftheInterimMarketSizeSegmentCutoff.Suchcaseswillbetreatedinthesame
wayasIPOsofsignificantsize.

3.3.5. CorporateEventsAffectingtheIndexReview

Some corporate events, such as, but not limited to, additions to or deletions from the Indices or
corporate events that trigger a significant market capitalization change relative to the companys full
market capitalization before the event (increase of 50% or greater, or decrease of 33% or more), may
haveanimpactontheindexchangesannouncedatthetimeoftheIndexReviews.Insuchsituationandif
thecompletiondateofthecorporateeventiseffectivebetweentheIndexReviewpricecutoffdateand
one month after the Index Review effective date, MSCI may amend the Index Review result and
announcement to consider the impact of the corporate event, in order to avoid potential reverse
turnover.MSCImayamendtheIndexReviewchangesuntilfivebusinessdaysbeforetheIndexReview
effectivedate.

13
IPOswithaFIFoflessthan0.15wouldhavetomeetthesamecriteriaforearlyinclusionasIPOswithaFIFof0.15orhigher.

IndexMethodology
May2013
Tocommunicatetheseamendments,aseparateannouncementwillbesenttotheclientseitherwiththe
Index Review announcement or with the corporate event announcement depending on the
announcementdateoftheevent.

MSCIreservestherighttohandlespecificcasesdifferentlyifmoreappropriate.
3.4. AnnouncementPolicy
3.4.1. SemiAnnualIndexReview

TheresultsoftheSAIRsareannouncedatleasttwoweeksinadvanceoftheireffectiveimplementation
datesasofthecloseofthelastbusinessdayofMayandNovember.

3.4.2. QuarterlyIndexReview

TheresultsoftheQIRsareannouncedatleasttwoweeksinadvanceoftheireffectiveimplementation
datesasofthecloseofthelastbusinessdayofFebruaryandAugust.
3.4.3. OngoingEventRelatedChanges
3.4.3.1. ClientAnnouncements

Allchangesresultingfromcorporateeventsareannouncedtoclientspriortotheirimplementationinthe
MSCIGlobalInvestableMarketIndices.

Thechangesaretypicallyannouncedatleasttenbusinessdayspriortothesechangesbecomingeffective
intheindicesasexpectedannouncements,orasundeterminedannouncements,whentheeffective
dates are not known yet or when aspects of the event are uncertain. MSCI sends confirmed
announcementsatleasttwobusinessdayspriortoeventsbecomingeffectiveintheindicesprovidedthat
allnecessarypublicinformationconcerningtheeventisavailable.Incaseaconfirmedannouncement
needstobeamended,MSCIsendsacorrectionannouncementwithadescriptivetextannouncement
toprovidedetailsaboutthechangesmade.

Forcertainevents,MSCIonlysendsconfirmedannouncements,especiallyduetoinsufficientorlackof
publiclyavailableinformationorlatecompanydisclosure.FortheMSCIWorldMicroCapIndexandthe
MSCI Frontier Markets Small Cap Index, MSCI will generally only send confirmed announcements at

IndexMethodology
May2013
leasttwobusinessdayspriortoeventsbecomingeffectiveintheindex,providedthatallnecessarypublic
informationconcerningtheeventisavailable.

Thefulllistofallnewandpendingchangesisdeliveredtoclientsonadailybasis,between5:30PMand
6:00PMUSEasternTime(EST)throughtheAdvanceCorporateEvents(ACE)File.
Inexceptionalcases,eventsareannouncedduringmarkethoursforsameornextdayimplementation.
Announcements made by MSCI during market hours are usually linked to late company disclosure of
corporate events or unexpected changes to previously announced corporate events. A descriptive text
announcementissentforallcorporateeventseffectiveonthesamedayoronthenextday.

Ingeneral,MSCIalsosendstextannouncementforcorporateeventseffectivewithinthenext48hours,
except for US Equities equity offerings and market neutral events such as split, reverse split or stock
dividend.

Inthecaseofsecondaryofferingsrepresentingatleast5%ofasecuritysnumberofsharesforexisting
constituents,thesechangeswillbeannouncedpriortotheendofthesubscriptionperiodwhenpossible
and a subsequent announcement confirming the details of the event (including the date of
implementation)willbemadeassoonastheresultsareavailable.

BothprimaryequityofferingsandsecondaryofferingsforUSsecurities,representingatleast5%ofthe
securitysnumberofshares,willbeconfirmedthroughanannouncementduringmarkethoursfornext
dayorshortlyafterimplementation,asthecompletionoftheeventscannotbeconfirmedpriortothe
notificationofthepricing.

Early deletions of constituents due to bankruptcy or other significant cases are announced as soon as
practicablepriortotheirimplementationintheMSCIindices.

ForMSCIGlobalStandardIndexconstituents,amoredescriptivetextannouncementissenttoclientsfor
significanteventsthatmeetanyofthefollowingcriteria:
Additionsanddeletionsofconstituents.
ChangesinfreefloatadjustedmarketcapitalizationequaltoorlargerthanUSD5billion,or
withanimpactofatleast1%oftheconstituent'sunderlyingcountryindex.
In general, no descriptive text announcement will be sent for the MSCI World Micro Cap Index
constituentsandFrontierMarketsSmallCapIndexconstituents.

However,ifwarranted,MSCImaymakedescriptivetextannouncementsforeventsthatarecomplexin
natureandforwhichadditionalclarificationcouldbebeneficialforanyStandard,SmallCapandMicro
CapIndices.

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May2013
3.4.3.2. PublicAnnouncements

All additions and deletions of constituents of the MSCI Global Investable Market Indices resulting from
corporateeventsarepubliclyannouncedpriortotheirimplementation.

In general, other changes resulting from corporate events that affect constituents of the MSCI Global
InvestableMarketIndices,suchaschangesintheForeignInclusionFactor(FIF)and/orinthenumberof
sharesofaconstituent,arenotpubliclyannouncedbutareannouncedonlytoclients.

If warranted, MSCI reserves the right to make public announcements related to corporate events for
specialcases,suchastheineligibilityofasecurityintheMSCIGlobalInvestableMarketIndices.

Thechangesaretypicallyannouncedatleasttwobusinessdayspriortoeventsbecomingeffectiveinthe
indices. Public announcements are a summary of the confirmed announcements that are made to
clients. Public announcements are typically made shortly before a confirmed client announcement is
made.

MSCI posts the announcements on its web site, www.msci.com, and on Bloomberg page MSCN. In
addition, announcements are posted on Reuters public pages MSCIA for MSCI Global Standard Index
constituentsandMSCIDomesticStandardIndexconstituents.
3.4.4. IPOsandOtherEarlyInclusions

EarlyinclusionsoflargeIPOsintheMSCIStandardIndexSeriesareannouncednoearlierthanthefirst
dayoftradingandnolaterthanbeforetheopeningofthethirddayoftradinginthemarketwherethe
companyhasitsprimarylisting.

Early inclusions of already listed securities following large secondary offerings of new and/or existing
sharesareannouncednoearlierthanshortlyaftertheendoftheofferperiod.

ItisMSCIpolicynottocommentonthepotentialinclusionofequitysecuritiestobelistedinthefuture,
including their industry classification under the Global Industry Classification Standard (GICS), their
country classification and their potential inclusion in an MSCI index. The same applies to nonindex
constituentsthatarealreadylistedwhichhavependinglargeevents.
3.4.5. GlobalIndustryClassificationStandard(GICS)


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Noneventrelatedchangesinindustryclassificationatthesubindustrylevelareannouncedatleasttwo
weeks prior to their implementation as of the close of the last US business day of each month. MSCI
announcesGICSchangestwiceamonth,thefirstannouncementbeingmadeonthefirstUSbusinessday
ofthemonthandthesecondonebeingmadeatleasttenUSbusinessdayspriortothelastUSbusiness
dayofthemonth.AllGICSchangesannouncedinagivenmonthwillbeimplementedasofthecloseof
thelastUSbusinessdayofthemonth.


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Section4:MSCIAllCapIndices

This section should be read in conjunction with the earlier Section 2 Constructing the MSCI Global
InvestableMarketIndicesandSection3MaintainingtheMSCIGlobalInvestableMarketIndices.

ThecalculationoftheMSCIAllCapIndicesiscurrentlylimitedtoDevelopedMarkets.
4.1. ConstructingtheMSCIAllCapIndices

TheMSCIAllCapIndicesencompassallconstituentsoftheMSCIGlobalInvestableMarketIndicesaswell
as securities allocated to the MSCI Micro Cap Indices. The construction of the MSCI Global Investable
MarketIndicesisdescribedindetailinprevioussections.

ConstructingtheMSCIAllCapIndicesinvolvesthefollowingsteps:
ConstructingGlobalInvestableMarketIndicesasdescribedinearliersections.
ConstructingaMicroCapIndexforeachmarketasdescribedbelow.
AggregatingtheGlobalInvestableMarketIndiceswiththeMicroCapIndices.

The Micro Cap SizeSegment is constructed by including all securities which are not part of the Global
InvestableMarketIndicesandmeetthefollowingrequirements:
MicroCapMaximumSizeRequirement.
MicroCapMinimumSizeRequirement.
MicroCapMinimumLiquidityRequirement.
GlobalMinimumForeignInclusionFactorRequirement.
MinimumLengthofTradingRequirement.

Eachofthesescreensisdescribedindetailbelow.
4.1.1. MicroCapMaximumSizeRequirement

Thisscreenisappliedatthecompanylevel.

AcompanywithafullcompanymarketcapitalizationexceedingtheSmallCapEntryBuffer(asdefinedin
Subsection3.1.5.1)maynotbeallocatedtotheMicroCapSizeSegment.

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4.1.2. MicroCapMinimumSizeRequirement

Thisscreenisappliedatthecompanylevel.

InordertobeallocatedtotheMicroCapSizeSegment,acompanymusthavetherequiredminimumfull
market capitalization and full security market capitalization. This minimum full market capitalization is
referred to as the Micro Cap Minimum Size Requirement and is applied to both full company market
capitalization(issuerlevel)andfullsecuritymarketcapitalization.Thisrequirementappliestocompanies
inallDevelopedMarkets.

The Micro Cap Minimum Size Requirement is derived using the same process as described in the Sub
section 2.2.1 targeting cumulative free floatadjusted market capitalization coverage of 99.8% of the
DevelopedMarketsEquityUniverse(asdefinedinSubsection2.1).
4.1.3. MicroCapMinimumLiquidityRequirement

InordertobeeligibleforinclusionintheMicroCapSizeSegmentasecuritymusthavea12monthATVR
ofatleast5%anda12monthfrequencyoftradingofatleast50%.
4.1.4. GlobalMinimumForeignInclusionFactorRequirement

Thisscreenisappliedattheindividualsecuritylevel.

A security must have Foreign Inclusion Factors (FIFs) equal to or larger than 0.15 to be eligible for
inclusionintheMicroCapSizeSegment.

Securities with a FIF equal to 0.15 or above will also be excluded if their free floatadjusted market
capitalization is less than Micro Cap Minimum Size Requirement for Existing Constituents threshold
definedinthesubsection4.2.1.2
4.1.5. MinimumLengthofTradingRequirement

Thisscreenisappliedattheindividualsecuritylevel.

ForanIPOtobeeligible forinclusion inthe Micro CapSizeSegment, the newissuemusthavestarted
tradingatleastthreemonthsbeforetheimplementationdateofaSemiAnnualIndexReview.

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4.2. MaintainingtheMSCIAllCapIndices

Similarly to the Large, Mid and Small Cap SizeSegments, Micro Cap SizeSegment index maintenance
involves:
SemiAnnualIndexReviews(SAIRs)inMayandNovemberwhichinclude:
o UpdatingtheindicesonthebasisofafullyrefreshedEquityUniverse.
o Taking buffer rules (as defined in Subsection 3.1.5.1) into consideration for migration of
securitiesacrosssizesegments.
o Updating(FIFs)andNumberofShares(NOS).
QuarterlyIndexReviews(QIRs)inFebruaryandAugustareaimedat:
o ReflectingtheimpactofsignificantmarketeventsonFIFsandupdatingNOS.
Ongoingeventrelatedchanges.Changesofthistypearegenerallyimplementedintheindices
astheyoccur.MoreinformationontheeventrelatedchangescanbefoundintheCorporate
EventsMethodologybook
4.2.1. SemiAnnualIndexReviewsinMayandNovember

AsdescribedinSection3,duringeachSAIRtheEquityUniverseisupdatedandallsizesegmentsofthe
Global Investable Market Indices are reviewed. The following index maintenance activities are
undertakenaspartoftheSAIRfortheMicroCapSizeSegment:
UpdatingtheMicroCapMinimumSizeRequirement.
Assigning companies to the Micro Cap SizeSegment taking into account size and liquidity buffer
zones.
4.2.1.1. UpdatingtheMicroCapMinimumSizeRequirement

TheMicroCapMinimumSizeRequirementisupdatedateachSAIRinthefollowingmanner:

Thecumulativefreefloatadjustedmarketcapitalizationcoverageattherankofthecompanythatwas
usedtodefinetheMicroCapMinimumSizeRequirementatthepreviousrebalanceiscalculated.

IfthecoverageoftheupdatedDevelopedMarketEquityUniverseatthatrankfalls:
between99.7%and99.8%,theMicroCapMinimumSizeRequirementissettothecurrentfull
marketcapitalizationofthecompanyatthatrank.
below 99.7%, the Micro Cap Minimum Size Requirement is reset to the full market
capitalizationofthecompanyat99.7%coverageandtherankofthatcompanyisnotedforthe
nextrebalance.
above99.8%,theMicroCapMinimumSizeRequirementandrankareresetbasedonthefull
marketcapitalizationofthecompanyat99.8%coverageandtherankofthatcompanyisnoted
forthenextrebalance.

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4.2.1.2. AssigningCompaniestotheMicroCapSizeSegment

AllcompaniesmeetingtherequirementsoutlinedinSubsections4.1.1through4.1.5whicharenotpart
oftheInvestableMarketSizeSegmentsareassignedtotheMicroCapSizeSegment.

Existing constituents of the Micro Cap SizeSegment may remain in the segment under the following
conditions:
companyfullmarketcapitalizationisnotabovetheSmallCapEntryBuffer.
company full market capitalization and security full market capitalization are greater than or
equaltothelowerofUSD10millionorthefullmarketcapitalizationofthecompanyat99.95%
coverage(MicroCapMinimumSizeRequirementforExistingConstituents).
FIFremainsaboveorequalto0.15.
12monthfrequencyoftradingisaboveorequal10%.
4.2.2. QuarterlyIndexReviewsofFebruaryandAugust

QIRs are only aimed at reflecting the impact of significant market events on FIFs and updating NOS.
TypicallynochangeintheconstituentsoftheMicroCapSizeSegmentmaytakeplaceatthetimeofQIRs.
AtthetimeofQIRsacompanymayentertheMicroCapSizeSegmentonlyifitisdeletedfromtheSmall
CapSizeSegmentduetoalowliquidityanditsatisfiestheconditionsspecifiedinSubsection4.2.1.2.
4.2.3. OngoingEventRelatedChanges

Ongoing eventrelated changes to the indices are the result of mergers, acquisitions, spinoffs,
bankruptcies, reorganizations and other similar corporate events. They can also result from capital
reorganizationsintheformofrightsissues,bonusissues,publicplacementsandothersimilarcorporate
actionsthattakeplaceonacontinuingbasis.Thesechangesgenerallyarereflectedintheindicesatthe
timeoftheevent.

TheongoingmaintenanceoftheMicroCapSizeSegmentgenerallyfollowstheprocessoutlinedinSub
section3.3.


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Section5:MSCIFrontierMarketsIndices
5.1. FrontierMarketsDefinition

MSCIstartsbyconsideringallequitymarketsnotincludedintheMSCIEmergingMarketsIndex,that:
demonstratearelativeopennesstoandaccessibilityforforeigninvestors
aregenerallynotconsideredaspartofthedevelopedmarketsuniverse14
do not belong to countries undergoing a period ofextreme economic (e.g., hyperinflation) or
politicalinstability(e.g.,civilwar)

MSCIthenappliesthefollowingmaterialityrequirement:
AminimumoftwocompanieswithsecuritieseligiblefortheStandardIndex.
5.1.1. UpdatingMSCIFrontierMarketsIndexCoverage

MSCIwillonaregularbasismonitorpotentialnewmarketsthatmayqualifyorcurrentmarketsthatmay
not qualify anymore for the MSCI Frontier Markets Index. Potential additions and deletions will be
consideredsemiannuallyduringtheMayandNovemberSemiAnnualIndexReviews.

AStandaloneCountryStandardIndexmaybeaddedtotheMSCIFrontierMarketsIndexattheearliestas
partoftheSemiAnnualIndexReviewthatfollowsthecreationoftheStandaloneCountryStandardIndex
forthatmarket.

PleaserefertoAppendixIIformoreinformationontheMarketClassificationFramework.
5.1.2. StandaloneCountryIndices

MSCI will consider the creation of Standalone Country Indices for countries not currently covered by
MSCIduringtheMayandNovemberSemiAnnualIndexReviews.

AStandaloneCountryStandardIndexmaybecreatedforcountrieshavingaminimumoftwocompanies
withsecuritiesmeetingtherequirementsfortheFrontierMarketsStandardIndex.

14
E.g.Luxembourg,IcelandorCyprus.Thesecountriesarepartofthedevelopedmarketsuniverse.Giventheirmodestsizethesemarketsarenotincludedinthe
MSCIWorldIndex.

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A Standalone Country IMI may be created for countries having a minimum of one company with
securities meeting the requirements for the Frontier Markets Standard Index, and a minimum of two
companieswithsecuritiesmeetingtherequirementsfortheFrontierMarketsSmallCapIndex.

MSCIalsoconsiderstheavailabilityandaccuracyofmarketdatawhendecidingonthepotentialcreation
ofStandaloneCountryIndicesforcountriesnotcurrentlycoveredbyMSCI.
5.2. MethodologyusedtoconstructandmaintaintheMSCIFrontierMarkets
Indices

This appendix should be read in conjunction with the earlier Section 2 Constructing the MSCI Global
InvestableMarketIndicesandSection3MaintainingtheMSCIGlobalInvestableMarketIndices.

ThemethodologyusedtoconstructtheMSCIFrontierMarketsIndicesissimilar,butnotidentical,tothe
constructionoftheindicesforDevelopedandEmergingMarkets.Oneoftheprimedifferencesisthatthe
Frontier Markets are divided into Larger Frontier Markets and Smaller Frontier Markets with different
minimumsizerequirements.LargerFrontierMarketsaredefinedasmarketsforwhichtheapplicationof
the Emerging Markets Global Minimum Size reference results in adequate Standard SizeSegment
coverage. Smaller Frontier Markets require the use of a relaxed Global Minimum Size Reference (0.5
times Global Minimum Size Reference for Larger Frontier Markets) to reach sufficient Standard Size
Segment coverage. Further, there are three levels of minimum liquidity requirements very low, low,
andaveragetoaccommodatethedivergentliquiditylevelsinFrontierMarkets.SeeAppendixXforthe
countriesthatfallundereachclassification.

Inaddition,toaccountforgenerallylowerinvestabilitycharacteristicsofFrontierMarkets,noadditional
investability requirements are applied for securities to be included in the Investable Market and the
StandardIndiceswiththeexceptionofforeignroomrequirementswhichareidenticaltothoseappliedin
DevelopedandEmergingMarkets.

More specifically, the methodological differences between the index construction for Frontier Markets
countriesandforcountriesconstitutingtheMSCIACWIIndexarefoundinthefollowing:
Fullandfreefloatadjustedmarketcapitalizationrequirementsresultingfromcategorizationof
FrontierMarketsintoLargerandSmallerMarkets
LiquidityrequirementsresultingfromcategorizationofFrontierMarketsintoverylow,lowor
averageliquiditymarkets
FinalSizeSegmentInvestabilityRequirements
IndexContinuityRules
ImplementationofCorporateEvents
IPOsandotherearlyinclusions


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May2013
Inaddition,thesizesegmentationintoLargeCapandMidCapoftheStandardIndexisnotofferedfor
FrontierMarketswiththeexceptionoftheMSCIGulfCooperationCouncil(GCC)CountriesIndices.

Moredetailsonthemethodologicaldifferencesaredescribedbelow.
5.2.1. CategorizationofFrontierMarketsintoLargerandSmallerMarkets

As mentioned above, in order to account for differences in market size and structure across Frontier
Markets, each Frontier Market is categorized as a Larger or Smaller market. The categorization is
reviewedsemiannuallyduringtheMayandNovemberSemiAnnualIndexReviews.

Each country is analyzed independently to determine the most suitable size categorization. MSCI
considersseveralfactorsfortheminimumsizecategorizationofeachFrontierMarket:
ThenumberofStandardIndexconstituentssubjecttocategorization.
ThedifferencesintheStandardIndexfreefloatadjustedmarketcapitalizationcoveragewhen
applyingdifferentGlobalMinimumSizeReferences.
Recent development of the stock market structure i.e., full market capitalization and size
distributionofcompanies.Expectedevolutionofthestockmarketstructure(e.g.,futureIPOs).

The categorization between the Larger and Smaller Frontier Markets results in two different sets of
EquityUniverseMinimumFloatAdjustedMarketCapitalizationRequirementsaswellasGlobalMinimum
SizeReferences.
5.2.1.1. EquityUniverseMinimumFloatAdjustedMarketCapitalizationRequirement

To be eligible for inclusion in a Market Investable Equity Universe, a security must have a free float
adjustedmarketcapitalizationequaltoorhigherthan:
LargerFrontierMarkets:50%oftheEquityUniverseMinimumSizeRequirement
SmallerFrontierMarkets:25%oftheEquityUniverseMinimumSizeRequirement

DuringtheMayandNovemberSemiAnnualIndexReviews,existingconstituentsmustmeet2/3rdofthe
thresholdinordertobemaintainedinthesizesegmentindices.

Example:
If,usingthedefinitioninsection2.2.1,theEquityUniverseMinimumSizeRequirementissetat
USD 150 million, then a security in a larger market must have a free floatadjusted market
capitalization equal to or higher than USD 75 million to be eligible for inclusion in a Market
InvestableEquityUniverse,andUSD37.5millioninasmallermarket.

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During a SemiAnnual Index Review, and assuming an Equity Universe Minimum Size
RequirementsetatUSD150million,anexistingconstituentinalargermarketmusthaveafree
floatadjustedmarketcapitalizationequaltoorhigherthanUSD50milliontobemaintainedin
the sizesegment indices, and USD 25 million in a smaller market.Global Minimum Foreign
InclusionFactorRequirement.
5.2.1.2. GlobalMinimumForeignInclusionFactorRequirement

Similarly to Developed and Emerging Markets, securities with a FIF of less than 0.15 are generally not
eligibleforinclusionintheMSCIFrontierMarketsIndicesunlessthesesecuritiesaresufficientlylarge.In
Frontier Markets, securities are considered as large if their full company market capitalization is above
1.8timesoftheInterimSizeSegmentCutofffortherelevantStandardCountryIndexandtheirfreefloat
adjusted market capitalization is at least 1.8 times of the relevant free floatadjusted market
capitalizationthresholdsdefinedabove.

ExistingconstituentswithaFIFoflessthan0.15mayremainintheStandardIndexifthecompaniesmeet
thefullcompanymarketcapitalizationandliquiditycriteriaappliedforthesecuritieswithFIFof0.15or
higher and their free floatadjusted market is not below 2/3 of the 1.8 times of the relevant Equity
UniverseMinimumSizeRequirementmentionedearlier.

SecuritieswithaFIFbelow0.15maynotbeaddedtoormaintainedintheSmallCapSizeSegment.
5.2.1.3. GlobalMinimumSizeReference

TheGlobalMinimumSizeReferencesfortheStandardandInvestableMarketSizeSegmentsoftheMSCI
Frontier Markets Indices are linked to the corresponding Global Minimum Size References of the
EmergingMarketsundertheMSCIGlobalInvestableMarketIndicesMethodology.

The Global Minimum Size References for Larger Frontier Markets are set equal to the corresponding
Emerging Markets Global Minimum Size References (refer to Subsection 2.3.2.1), while the Global
MinimumSizeReferencesforSmallerFrontierMarketsaresetat0.5timesthecorrespondingEmerging
MarketsGlobalMinimumSizeReferences.


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5.2.2. CategorizationofFrontierMarketsintoverylow,loworaverageliquiditymarkets

InordertoaccountforthedifferencesinliquiditypatternsacrossFrontierMarkets,eachFrontierMarket
is categorized as a very low, low or average liquidity market. The corresponding minimum liquidity
requirement levels are set at 2.5%, 5% or 15% 12month ATVR. This rule is referred to as the Frontier
MarketsLiquidityRequirement.

ThecategorizationofeachcountryisreviewedsemiannuallyduringtheMayandNovemberSemiAnnual
IndexReviews.

ForeachFrontierMarketMSCIconsidersthefollowingfactors:
The proportion of the countrys IMI (in terms of number of constituents and weight) deleted
fromtheindexduetofailingtheliquidityrequirements
The proportion of the countrys Equity Universe (in terms of number of constituents and
weight)notincludedintheIMIduetofailingtheliquidityrequirements,andhowitcompares
tootherFrontierMarkets
The average liquidity level for the countrys Equity Universe, and how it compares to other
FrontierMarkets
ThecountryshistoricalliquidityleveltrendsandhowtheycomparetootherFrontierMarkets
ThesizeandnumberofconstituentsinthecountryIMIIndexrelativetootherFrontierMarkets

DuringSemiAnnualIndexReviews,existingconstituentsoftheIMIinaverageandlowliquiditymarkets
mayremaininaMarketInvestableUniverseiftheir12monthATVRstaysabove2/3rdoftheminimum
level requirement of 15% for average liquidity markets and 5% for low liquidity markets. Existing
constituentsoftheIMIinverylowliquiditymarketsmayremaininaMarketInvestableUniverseiftheir
12monthATVRstaysabove1%.

IfanexistingStandardconstituentinFrontierMarketsfailstomeettheliquidityrequirements,buthasa
weightofmorethan10%inthecountryStandardindexandafloatadjustedmarketcapitalizationabove
0.5timestheGlobalMinimumSizeReferenceforEmergingMarkets,theconstituentwillremaininthe
index.However,MSCIwouldapplyaLimitedInvestabilityFactor(LIF)of0.5totheweightofthesecurity,
andatthesubsequentsemiannualindexreview,MSCI:
Would delete the security from the index if the security does not meet at least 1/3rd of the
liquidityrequirements
Wouldmaintainthesecurityintheindexifthesecuritydoesmeetatleast1/3oftheliquidity
requirements. MSCI would remove the LIF if the security remains in the index and meets all
liquidityrequirementsfornewconstituentsfortwoconsecutivesemiannualindexreviews.


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5.2.3. FinalSizeSegmentInvestabilityRequirements

The MSCI Frontier Markets Indices Methodology does not apply Final SizeSegment Investability
Requirements for floatadjusted market capitalization and liquidity described in Subsections 2.3.5.1,
2.3.5.2,3.1.6.and3.2.1.4
5.2.4. IndexContinuityRules

Ifaftertheapplicationoftheindexconstructionmethodology,aStandardIndexcontainsfewerthantwo
securities, then the largest securities by free floatadjusted market capitalization are added to the
StandardIndexinordertoreachtwoconstituents.

AtsubsequentIndexReviews,ifthefreefloatadjustedmarketcapitalizationofanonindexconstituentis
atleast1.50timesthefreefloatadjustedmarketcapitalizationofthesmallestexistingconstituentafter
rebalancing,thelargerfreefloatadjustedmarketcapitalizationsecurityreplacesthesmallerone.
5.2.5. ImplementationofCorporateEvents

Generally, the ongoing maintenance of the Frontier Markets Indices follows the same process as
DevelopedandEmergingMarkets,outlinedinSubsection3.3.

Asageneralpolicy,changesresultingfromcorporateeventsareimplementedintheMSCIEquityIndices
astheyoccursimultaneouslywiththeevent,providedthatallnecessarypublicinformationconcerning
the event is available. However, changes resulting from corporate events in the Frontiers Market
countriesthatcouldnotbeimplementedonorneartheeffectivedatesespeciallyduetoinsufficientor
lack of publicly available information and where no price adjustment factor (PAF) is necessary, are
implementedatthefollowingregularlyscheduledIndexReviews.Examplesofsuchcorporateeventsmay
includeamongstothersshareplacementsandofferings.
5.2.6. IPOsandOtherEarlyInclusions
Similarly to Developed and Emerging Markets, IPOs which are significant in size and meet all the MSCI
inclusioncriteriamaybeconsideredforinclusionintheStandardIndexoutsideIndexReviews.Inorder
for an IPO and other newly eligible securities to qualify for early inclusion to the Standard Index, the
securityhastomeetthesamerequirementsasoutlinedinSubsection3.3.4.1withtheexceptionofthe
free floatadjusted market capitalization requirement. Early inclusion to the MSCI Frontier Markets
Indices would have to have a free floatadjusted market capitalization of at least 1.8 times the Equity
UniverseMinimumFloatAdjustedMarketCapitalizationRequirementdescribedinSubsection5.2.1.1as
ofthecloseofitsfirsttradingday.


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Appendices

IndexMethodology
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AppendixI:EquityMarketsandUniverse

The tables below provide a list of Stock Exchanges, Market Segments and Eligible Security Classes that
MSCI uses as the basis of the construction of the MSCI Global Investable Market Indices and MSCI
FrontierMarketsIndices.
EligibleMarkets(DevelopedMarkets)
Country Name Stock Exchange Market Segment
AUSTRALIA Australian Securities Exchange
AUSTRIA Vienna Stock Exchange Prime Market
Standard Market
BELGIUM Euronext Eurolist
CANADA Toronto Stock Exchange
DENMARK Copenhagen Stock Exchange
FINLAND Helsinki Stock Exchange Main List
I List
NM List
FRANCE Euronext Eurolist
Alternext
GERMANY Deutsche Brse Xetra Official Market
Regulated Market
GREECE Athens Exchange Big Capitalization
Medium and Small Capitalization
HONG KONG Stock Exchange of Hong Kong Main Board
Growth Enterprise Market
IRELAND Irish Stock Exchange Official Market
Irish Enterprise Exchange (IEX)
ISRAEL Tel Aviv Stock Exchange
ITALY Borsa Italiana Blue Chip
STAR
Standard
Mercato Expandi
JAPAN Tokyo Stock Exchange First Section
Second Section
Mothers
Osaka Stock Exchange First Section
Second Section
Hercules
JASDAQ
Nagoya Stock Exchange First Section
Second Section
Centrex
NETHERLANDS Euronext Eurolist
NEW ZEALAND New Zealand Stock Exchange
New Zealand Alternative Exchange
NORWAY Oslo Stock Exchange Main List
SMB List
Primary Capital Certificates List
PORTUGAL Euronext Eurolist
SINGAPORE Singapore Exchange Main Board
SESDAQ
SPAIN Madrid Stock Exchange Primer Mercado
SWEDEN Stockholm Stock Exchange A-list
O-list
Nordic Growth Market
Nya Marknaden
AktieTorget
SWITZERLAND SIX Swiss Exchange VIRT-X
SWX
SWX Local Caps
UNITED KINGDOM London Stock Exchange Main Market
AIM
USA New York Stock Exchange
NASDAQ
American Stock Exchange

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EligibleMarkets(EmergingMarkets)
BRAZIL Bolsa de Valores de Sao Paulo Traditional
Level 1
Level 2
Novo Mercado
CHILE Santiago Stock Exchange
CHINA (1) Shenzen Stock Exchange
Shanghai Stock Exchange
Stock Exchange of Hong Kong Main Board
Growth Enterprise Market
COLOMBIA Colombian Stock Exchange
CZECH REPUBLIC Prague Stock Exchange Main Market
Secondary Market
Free Market
EGYPT Cairo & Alexandria Stock Exchanges
HUNGARY Budapest Stock Exchange Equities Category A
Equities Category B
INDIA National Stock Exchange
Mumbai Stock Exchange
INDONESIA Jakarta Stock Exchange Main Board
Development Board
KOREA Korea Exchange KSE
KOSDAQ
MALAYSIA Malaysia Stock Exchange Main Board
Second Board
MESDAQ
MEXICO Mexican Stock Exchange
MOROCCO Casablanca Stock Exchange
PERU Lima Stock Exchange
PHILIPPINES Philippine Stock Exchange Main Board
POLAND Warsaw Stock Exchange Main Market
Parallel Market
RUSSIA (1) Moscow Exchange
SOUTH AFRICA Johannesburg Stock Exchange Main Board
AltX
TAIWAN (2) Taiwan Stock Exchange
GreTai Securities Market Main Board
THAILAND Stock Exchange of Thailand
Market for Alternative Investment
TURKEY Istanbul Stock Exchange National Market
Second National Market
New Economy Market
(1) For a more detailed description of the MSCI universe, please refer to Appendix II
(2) Securities that have been placed under the Altered Trading Method are not eligible for the MSCI Taiwan Equity Universe


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EligibleMarkets(FrontierMarkets)
ARGENTINA Buenos Aires Stock Exchange
BAHRAIN Bahrain Stock Exchange
BANGLADESH Dhaka Stock Exchange
BOSNIA HERZEGOVINA (1) Bania Luka Stock Exchange
Sarajevo Stock Exchange
BOTSWANA (2) Botswana Stock Exchange BSE Domestic Equity Market
Venture Capital Market
BULGARIA Bulgarian Stock Exchange Official Market
CROATIA Varazdin Stock Exchange First Quotation
Second Quotation
JDD Quotation
Zagreb Stock Echange Official Market
Regular Market
Public Companies Market
ESTONIA Tallinn Stock Exchange Main List
Secondary List
GHANA (2) Ghana Stock Exchange First Offical List
Second Offical List
Third Offical List
JAMAICA (2) Jamaica Stock Exchange
JORDAN Amman Stock Exchange
KAZAKHSTAN Kazakhstan Stock Exchange
KENYA Nairobi Stock Exchange MIMS
AIMS
KUWAIT Kuwait Stock Exchange
LEBANON Beirut Stock Exchange Official Market
LITHUANIA Vilnius Stock Exchange Main List
Secondary List
MAURITIUS Stock Exchange of Mauritius Official Market
NIGERIA Nigeria Stock Exchange
OMAN Muscat Securities Market
PAKISTAN Karachi Stock Exchange
PALESTINE (3) Palestine Exchange
QATAR Doha Securities Market
ROMANIA Bucharest Stock Exchange Tier 1
Tier 2
Tier 3
SERBIA Belgrade Stock Exchange Listing A
Listing B
Unregulated Market
SLOVENIA Ljubljana Stock Exchange Official Market
SRI LANKA Colombo Stock Exchange Main Board
Second Board
TRINIDAD AND TOBAGO (4) Trinidad and Tobago Stock Exchange First Tier
Second Tier
TUNISIA Bourse de Tunis Primary Market
UKRAINE PFTS Stock Exchange
Ukrainian Exchange
UNITED ARAB EMIRATES Abu Dhabi Securities Exchange
Dubai Financial Market
NASDAQ Dubai
VIETNAM Hanoi Stock Exchange
Ho Chi Minh Stock Exchange
ZIMBABWE (5) Zimbabwe Stock Exchange (Harare)
(1) Added as stand-alone country at the May 2010 Semi-Annual Index Review
(2) Added as stand-alone countries at the November 2008 Semi-Annual Index Review
(4) Reclassified from Frontier Markets to stand-alone country at the May 2011 Semi-Annual Index Review

IndexMethodology
May2013
EligibleClassesofSecurities(DevelopedMarkets)
Country Name Classes of Securities*
AUSTRALIA Ordinary shares
Preferred shares (1)
Stapled securities
CDIs
AUSTRIA Ordinary shares
Participation certificates
BELGIUM Ordinary shares
CANADA Ordinary shares
Units of Income Trusts
Stapled securities
DENMARK Ordinary shares
FINLAND Ordinary shares
FRANCE Ordinary shares
Certificats d'Investissement
Certificats Coopratif d'Investissement
GERMANY Ordinary shares
GREECE Ordinary shares
HONG KONG Ordinary shares
Business trusts
Stapled securities
IRELAND Ordinary shares
Units
ISRAEL Common shares
ITALY Ordinary shares
Savings shares
JAPAN Ordinary shares
NETHERLANDS Ordinary shares
Certificates
NEW ZEALAND Ordinary shares
NORWAY Ordinary shares
Primary Capital Certificates
PORTUGAL Ordinary shares
SINGAPORE Ordinary shares
Business trusts
SPAIN Ordinary shares
SWEDEN Ordinary shares
Swedish Depositary Receipts
SWITZERLAND Registered shares
Bearer shares
Participation certificates
Dividend-right certificates
UNITED KINGDOM Ordinary shares
Units
CDIs
USA Common shares
Tracking Stock
(1) Preferred shares that exhibit characteristics of equity securities are generally eligible
* Depository Receipts trading in the same time-zone can be eligible in all markets in case
of low liquidity of a respective local listing

IndexMethodology
May2013
EligibleClassesofSecurities(EmergingMarkets)
Country Name Classes of Securities
BRAZIL Ordinary shares
Units
CHILE Common shares
CHINA (1) "B" shares
"H" shares
COLOMBIA Ordinary shares
CZECH REPUBLIC Common shares
EGYPT Ordinary shares
HUNGARY Common shares
INDIA Ordinary shares
INDONESIA Ordinary shares
KOREA Common shares
MALAYSIA Common shares
MEXICO Ordinary shares
Certificates of Participation
Units
MOROCCO Ordinary shares
PERU Common shares
Investment shares
PHILIPPINES Common shares
Philippine Depositary Receipts
POLAND Common shares
RUSSIA (1) Common shares
ADRs (3)
SOUTH AFRICA Common shares
Units
TAIWAN Ordinary shares
THAILAND Common shares
TURKEY Common shares
(1) For a more detailed description of the MSCI universe, please refer to Appendix III
(3) Depository Receipts trading in the same time-zone can be eligible in all markets in case
of low liquidity of a respective local listing. Exceptionally U.S. listings are eligible for Russia
despite being in a different time-zone.

IndexMethodology
May2013
EligibleClassesofSecurities(FrontierMarkets)
Country Name Classes of Securities
ARGENTINA ADRs
BAHRAIN Ordinary shares
BANGLADESH Ordinary shares
BOSNIA-HERZEGOVINA (1) Ordinary shares
BOTSWANA (2) Common shares
BULGARIA Common shares
ADRs
GDRs
CROATIA Common shares
ADRs
GDRs
ESTONIA Common shares
ADRs
GDRs
GHANA (2) Common shares
JAMAICA (2) Common shares
JORDAN Common shares
KAZAKHSTAN ADRs
GDRs
KENYA Common shares
ADRs
GDRs
KUWAIT Ordinary shares
LEBANON Common shares
ADRs
GDRs
LITHUANIA Common shares
ADRs
GDRs
MAURITIUS Common shares
ADRs
GDRs
NIGERIA Common shares
ADRs
GDRs
OMAN Ordinary shares
PAKISTAN Ordinary shares
PALESTINE (4) Common shares
QATAR Ordinary shares
ROMANIA Common shares
ADRs
GDRs
SERBIA Common shares
ADRs
GDRs
SLOVENIA Common shares
ADRs
GDRs
SRI LANKA Ordinary shares
ADRs
GDRs
TUNISIA Common shares
ADRs
GDRs
TRINIDAD AND TOBAGO (5) Common shares
UKRAINE Common shares
ADRs
GDRs
UNITED ARAB EMIRATES Ordinary shares
VIETNAM Common shares
ADRs
GDRs
ZIMBABWE (6) Common shares
(5) Reclassified from Frontier Markets to stand-alone country at the May 2011 Semi-Annual Index Review

IndexMethodology
May2013
REITs
Companies that have adopted the following REITs or REIT equivalent structures in the countries
mentionedbelowwillqualifytobeclassifiedintheGICSIndustryRealEstateInvestmentTrusts(REITs):
Australia:LPT(AustralianListedPropertyTrust),AREIT
Belgium:SICAFI(SocitdInvestissementCapitalFixeImmobilire)
Bulgaria,Canada,Germany,HongKong,China,Korea,Taiwan,theUKandtheU.S.:REIT(Real
EstateInvestmentTrust)
France:SIIC(SocitsdInvestissementsImmobiliersCotes)
Greece:REIC(RealEstateInvestmentCompany)
Italy:SIIQ(Societadiinvestimentoimmobiliarequotata)
Japan:JREIT(JapaneseRealEstateInvestmentTrust)
Malaysia,Thailand:REIT(RealEstateInvestmentTrust/PropertyTrustFunds)
Mexico:FIBRAS(FideicomisodeInfraestructurayBienesRaces)
Netherlands:FBI(Fiscalinvestmentinstitution/FiscaleBeleggingsinstelling)
NewZealand:PropertyTrusts
Singapore:SREIT(SingaporeRealEstateInvestmentTrust)
SouthAfrica:PropertyTrusts
Turkey:GayrimenkulYatirimOrtakligi

MSCI closely monitors the potential emergence of REIT equivalent structures in other countries and
announceswhenappropriatetheirconsiderationasREITsinthe GlobalIndustryClassificationStandard
(GICS).

CanadianIncomeTrusts

Income trusts in Canada formed under the laws of provinces which have passed limited liability
legislation and are not designed to invest in a diversified portfolio of income trusts, securities, and/or
funds, will be included in the MSCI Canada Equity Universe and will be subject to the same index
eligibilityrulesapplicabletootherequity(andequitylike)securities.


IndexMethodology
May2013
AppendixII:MarketClassificationFramework

The classification of markets is a key input in the process of index construction as it drives the
compositionoftheinvestmentopportunitysetstoberepresented.TheapproachusedbyMSCIaimsto
reflecttheviewsandpracticesoftheinternationalinvestmentcommunitybystrikingabalancebetween
acountryseconomicdevelopmentandtheaccessibilityofitsmarketwhilepreservingindexstability.

The MSCI Market Classification Framework consists of following three criteria: economic development,
sizeandliquidityaswellasmarketaccessibility.

In order to be classified in a given investment universe, a country must meet the requirements of all
threecriteriaasdescribedinthetablebelow.

Criteria Frontier Emerging Developed
A Economic Development
Country GNI per
capita 25% above the
A.1 Sustainability of economic development No requirement No requirement World Bank high
income threshold* for
3 consecutive years
B Size and Liquidity Requirements

B.1 Number of companies meeting the following Standard Index criteria 2 3 5
Company size (full market cap) ** USD 516 mm USD 1033 mm USD 2065 mm
Security size (float market cap) ** USD 37 mm USD 516 mm USD 1033 mm
Security liquidity 2.5% ATVR 15% ATVR 20% ATVR
C Market Accessibility Criteria

C.1 Openness to foreign ownership At least some Significant Very high
C.2 Ease of capital inflows / outflows At least partial Significant Very high
C.3 Efficiency of the operational framework Modest Good and tested Very high
C.4 Stability of the institutional framework Modest Modest Very high
* High income threshold for 2011: GNI per capita of USD 12,476 (World Bank, Atlas method)
** Minimum in use for the May 2013 Semi-Annual Index Review, updated on a semi-annual basis

TheeconomicdevelopmentcriterionisonlyusedindeterminingtheclassificationofDevelopedMarkets
whilethatdistinctionisnotrelevantbetweenEmergingandFrontierMarketsgiventheverywidevariety
ofdevelopmentlevelswithineachofthesetwouniverses.

Thesizeandliquidityrequirementsarebasedontheminimuminvestabilityrequirements fortheMSCI
GlobalStandardIndices.

Marketaccessibilityaimstoreflectinternationalinvestorsexperienceininvestinginagivenmarketand
as a result, this criterion includes several subcriteria. These criteria are generally based on qualitative
measures that are reviewed for all markets at least once a year during the MSCI Global Market
AccessibilityReview.

IndexMethodology
May2013
MSCI regularly reviews the market classification of all countries included in the MSCI Indices to ensure
that they remain reflective of the evolution of the different markets. In particular, changes in the
assessmentsundertheclassificationframeworkserveasthebasisfordeterminingthemarketsthatwill
bereviewedforpotentialmarketreclassificationaspartoftheAnnualMarketClassificationReview.MSCI
will only consider these markets for reclassification for which a change in classification status can be
viewedasirreversible.EveryJune,MSCIwillcommunicateitsconclusionsfromthediscussionswiththe
investmentcommunityonthelistofcountriesunderreviewandannouncethenewlistofcountries,if
any,underreviewforpotentialmarketreclassificationintheupcomingcycle.

IndexMethodology
November2012
Definition
Openness to foreign ownership
Investor qualification requirement

Existence of qualifying conditions for international investors. Existence of a level playing field for all international investors.
Foreign ownership limit (FOL) level Proportion of the market being accessible to non-domestic investors.
Foreign room level Proportion of shares still available for non-domestic investors. Existence of a foreign board where non-domestic investors could trade with
each other.
Equal rights to foreign investors Equal economic and voting rights as well as availability of information in English. Equal rights for minority shareholders.
Ease of capital inflows / outflows
Capital flow restriction level Existence of restriction on inflows and outflows of foreign capital to/from the local stock market (excluding foreign currency exchange
restrictions).
Foreign exchange market liberalization level Existence of a developed onshore and offshore foreign exchange market.
Efficiency of the operational framework
Market entry
Investor registration & account set up Existence/level of complexity of registration requirements for international investors such as Tax IDs as well as ease/complexity for setting up
local accounts (e.g., documents to be provided, approvals required). The tim to complete the process includes the preparation of the
documents.
Market organization
Market regulations Level of advancement of the legal and regulatory framework governing the financial market, the stock exchange and the various other
entities involved in the financial markets, an important weight is assigned to: ease of access (including in English), lack of ambiguity and
prompt enforcement of laws and regulations, as well as consistency over time.
Competitive landscape Existence of anti-competitive clauses restricting investors' access to derived stock exchange information, data and investment products,
including, for example the provision of independently calculated indices or the creation of baskets of securities used in the creation of
financial products.
Information flow Timely disclosure of complete stock market information items (e.g., stock exchange alerts, corporate news, float information, dividend
information) in English and under reasonable commercial terms, as well as the robustness and enforcement of accounting standards.
Market infrastructure
Clearing and Settlement Well functioning clearing and settlement system based on international standards including delivery versus payment (DVP), the absence of
pre-funding requirements/practices and the possibility to use overdrafts. Availability of real omnibus structures.
Custody Level of competition amongst local custodian banks as well as the presence of global custodian banks. Existence of an efficient
mechanism that prevents brokers to have unlimited access to the investors accounts and guarantees the safekeeping of its assets.
Registry / Depository A well functioning central registry or independent registrars and a central depository.
Trading Level of competition amongst brokers ensuring high quality services (e.g., cost efficient trading, ability to execute grouped trades at the
same price for the various accounts of a fund manager).
Transferability Possibility of off-exchange transactions and "in-kind" transfers.
Stock lending Existence of a regulatory framework as well as an efficient mechanism allowing extensive use of stock lending.
Short selling Existence of a regulatory and practical framework allowing short selling.
Stability of institutional framework Basic institutional principles such as the rule of law and its enforcement as well as the stability of the "free-market" economic system. Track
record of government intervention with regards to foreign investors.


IndexMethodology
May2013
AppendixIII:CountryClassificationofSecurities

This appendix outlines the guidelines MSCI uses to determine the country classification of equity
securities.
Generalframework

EachofthesecuritiesfollowedintheMSCIindexuniverseisclassifiedinoneandonlyonecountry.

The country classification of a security is generally determined by the country of incorporation of the
issuing company and the primary listing of the security. This approach determines the country
classificationofthevastmajorityofsecurities.

In the few cases where a company is incorporated in one country while its securities have a primary
listing in a different country, additional factors need to be considered to determine the country
classification.

Companies may choose to incorporate in a different country than the country of primary listing to
benefitfromtax,legal,and/orregulatoryadvantages.Thesecompaniesoftenincorporateincountries
with limited, if any, public domestic equity markets, such as the Bahamas, Bermuda, British Virgin
Islands, Cayman Islands, Channel Islands, Luxembourg, Marshall Islands, Netherlands Antilles, and
Panama. In some other cases, companies may seek to benefit from tax, legal and/or regulatory
advantages by incorporating in a different country than their country of primary listing where such
countryofincorporationisoneofthecountriesintheMSCIAllCountryWorldIndex(ACWI).Inbothof
thesecasesofspecialbenefitincorporations,MSCIwillgenerallyclassifythecompanyinthecountryof
theprimarylistingofitssecurities.

CompaniesincorporatedoutsideoftheUSwhichhavetheirsecuritiesprimarylistingintheUSmaybe
included in the USA index universe, provided that they file a Form 10K/10Q and that in four of the
followingfivevariablestheydonotpointtoanothersinglecountry:operations,revenues,headquarters,
managementandshareholderbase.

CompaniesincorporatedinaEuropeanDMcountry(includingLuxembourg)whichhavetheirsecurities
primary listing in a different European DM country are generally classified in the country of primary
listing.


IndexMethodology
May2013
Othercases

Inthefewremainingcaseswherethegeneralframeworkprovestobeinsufficient,anadditionalanalysis
maybeperformedtodeterminethecompanyscountryclassification.Insuchcircumstances,MSCIuses
asetofrules,themostimportantofwhichare:

The company's primary listing, secondary listings, if any, and the geographic distribution of its
shareholderbase;
Thegeographicdistributionofitsoperations(intermsofassetsandproduction);
Thelocationofitsheadquarters;and
Thecountryinwhichinvestorsconsiderthecompanytobemostappropriatelyclassified.

TheoutcomeofthatanalysismayleadtosomecompaniesnotbeingeligibleforanyMSCIcountryindex
ifthecountryofclassificationresultingfromtheanalysisremainsdifferentfromthecountryoflisting.
This may happen in particular, but not exclusively, for companies incorporated in an EM country and
havingtheironlylistinginaDMcountry.
Countryspecificcases

ChinaandRussiahaveanumberoflargecompaniesincorporatedwithinthembutwithsecuritieslisted
onlyoutsideofthem.MSCIconsiderssuchcompaniesforinclusionintheindexuniverseofthecountry
ofincorporationsubjecttothefollowing:

Russia: The MSCI Russia universe includes companies incorporated in Russia with a listing in either
Russia, London or New York. Companies with incorporation in a special benefit country, as described
above, may also be included in the Russia universe if they have an eligible listing in Russia. Russian
DepositaryReceiptsarecurrentlynotconsideredaseligiblelistings.

China15: The MSCI China universe includes companies incorporated in the Peoples Republic of China
(PRC) and listed in the form of B shares on the Shanghai Stock Exchange (in US$) or Shenzhen Stock
Exchange(inHK$),orHsharesontheHongKongStockExchange(inHK$).BshareswithaSTor*ST
statusareexcludedfromtheMSCIChinaUniverse.Ingeneral,MSCIwilldeletesuchsecuritiesfromthe
MSCIChinaIndexasofthecloseofthelastbusinessdayofeachmonthwithatleasttwofullbusiness
daysnotice.

15
TheamendedguidelinesfortheclassificationofsecuritiesintheMSCIChinauniversewillbeeffectiveasfollows:
forexistingconstituents,asofthecloseofMay30,2008tocoincidewiththeMay2008SemiAnnualIndexReview.
forpotentialindexadditionsfollowingacorporateevent,withimmediateeffect.
On an ongoing basis, country classification reviews for securities in Hong Kong and China are conducted annually and changes, if any, are implemented at
NovemberSAIRs.

IndexMethodology
May2013
Inaddition,theMSCIChinauniversealsoincludescompaniesnotincorporatedinthePRCbutlistedon
theHongKongStockExchangeprovidedthattheymeetthefollowingdefinitions

RedChip: the company is (directly or indirectly) controlled by organizations or enterprises that are
ownedbythestate,provinces,ormunicipalitiesofthePRC.

PChip:thecompanysatisfiesthemajorityofthefollowingconditions:
ThecompanyiscontrolledbyPRCindividuals
Thecompanyderivesmorethan80%ofitsrevenuefromPRCChina
Thecompanyallocatesmorethan60%ofitsassetsinPRCChina

TheMSCIChinauniverseexcludescompanieswhichsatisfytheaboveconditionsbutderivemorethan
80%oftheirrevenuesandprofitsfromtheHongKongSpecialAdministrativeRegion.Thosecompanies
willbeincludedintheMSCIHongKonguniverse.

Frontier Markets: The MSCI Frontier Markets ex GCC universe includes companies incorporated in a
Frontier Market with a listing in either the local market, London or New York. Companies with
incorporation in a special benefit country, as described above, may also be included in the Frontier
MarketsexGCCuniverseiftheyhavealistinginaFrontierMarket.
ChangeofIncorporation

In the event that a company that is already classified in one of the countries in the MSCI All Country
WorldIndex(ACWI)changesitsincorporationtoanothercountry,itgenerallywillremainintheinitial
country of classification. However, it may be reclassified if the companys geographical profile
fundamentallydiffersfollowingthereincorporation.

A change in the country classification of a company generally is implemented at a SAIR, except if the
changeistheresultofacorporateevent.Inthatcasethecompanymaybereclassifiedsimultaneously
withthechangeincountryofincorporationorataQIRfollowingthecorporateevent.

If a decision is made to reclassify the company after the change in country of classification an
announcementwillbesentoutaspertheMSCIannouncementpolicy.Noannouncementwillbesentif
thecompanywillnotbereclassified.

When MSCI changes a company's country classification, the companys equity securities are not
automatically included in the index of the new countryclassification even if the company was a
constituentofitsoriginalcountry'sindex.Thecompanyanditsecuritieswouldhavetobeeligibleinall
respectsintheindexofthenewcountry.

IndexMethodology
May2013
ReviewandMaintenance

MSCI periodically reviews the country classification of companies not classified into their country of
incorporation.
CountryofCoverageofCompaniesnotEligibleforInclusionintheMSCIGlobal
InvestableMarketIndices

MSCIdefinesthecountryofcoverageofcompaniesnoteligiblefortheMSCIGlobalInvestableMarket
Indices(GIMI),asperthegeneralframeworkofthecountryclassificationofsecurities(AppendixIIIof
theGIMIMethodologybook),byapplyingfourrules:

Rule1: Country of incorporation is driven by tax, legal and/or regulatory advantages; the
companyhasstronglinkagetoitscountryofprimarylisting.
Countryofcoverage=Countryofprimarylisting
Rule2: Country of incorporation is driven by tax, legal and/or regulatory advantages; the
company has no strong linkage to its country of primary listing; The company's history,
operationsandinvestorperceptionleadtoacountrycoveredbyMSCI.
Countryofcoverage=CountrycoveredbyMSCI
Rule3:CountryofincorporationisacountrynotcoveredbyMSCIandisnotdrivenbytax,legal
and/orregulatoryadvantages.
Countryofcoverage=Countryofprimarylisting
Rule4:Country of incorporation is a country covered by MSCI; the company has no strong
linkagetoitscountryofprimarylisting.
Countryofcoverage=CountrycoveredbyMSCI

ThefollowingtableprovidesthelistofthesecuritiesnoteligiblefortheMSCIGIMIwiththeirrespective
countryofcoverage.


IndexMethodology
May2013
MSCIIneligibleSecurities
SecurityName BloombergTicker Sedol CountryofPrimaryListing MSCICountryofCoverage Rule
AMDOCS DOXUNEquity 2256908 US UnitedStates 3
CHECKPOINTSOFTWARE CHKPUWEquity 2181334 US Israel 4
CHINAYUCHAIINT'LN(USD CYDUNEquity 2186191 US China 4
DAIRYFARMINT'L(USD) DFISPEquity 6180274 SG HongKong 2
EURASIADRILLING EDCLLIEquity B289L09 GB Russia 2
GLOBALSOURCES GSOLUWEquity 2576521 US China 2
HONGKONGLAND(USD) HKLSPEquity 6434915 SG HongKong 2
JARDINEMATHESON(USD) JMSPEquity 6472119 SG HongKong 2
JARDINESTRATEGIC(USD) JSSPEquity 6472960 SG HongKong 2
L'OCCITANEINTERNATIONAL 973HKEquity B3PG229 HK France 2

MAILLIEquity
MAIL.RUGDR B53NQB3 GB Russia 2
MANDARINORIENTAL(USD) MANDSPEquity 6560713 SG HongKong 2
NATUZZIADR NTZUNEquity 2459075 US Italy 4
OILSEARCH OSHAUEquity 6657604 AU Australia 3
POLYMETALINTERNATIONAL POLYLNEquity B6T5S47 GB Russia 2
POLYUSGOLD POLGLIEquity B6S4JG4 GB Russia 2
PRADASPA 1913HKEquity B4PFFW4 HK Italy 4
SAMSONITEINTLSA 1910HKEquity B4Q1532 HK UnitedStates 2
SEASPANCORPN SSWUNEquity B0GNP30 US China 4
TOTALGABON ECFPEquity 4309781 FR France 3

486HKEquity
UNITEDCOMPANYRUSAL B5BCW81 HK Russia 2
VIMPELCOMADR VIPUSEquity B62HR76 US Russia 2
X5RETAILGROUPGDR(USD) FIVELIEquity B07T3T9 GB Russia 2
CNHGLOBALN.V. CNHUSEquity 2534778 US UnitedStates 1
SINACORP SINAUSEquity 2579230 US China 2
MONGOLIANMININGCORP 975HKEquity B4N0VG7 HK HongKong 3
YANDEXN.V. YNDXUSEquity B5BSZB3 US Russia 2
THAIBEVERAGEPCL THBEVSPEquity B15F664 SG Thailand 4
GENPACTLIMITED GUSEquity B23DBK6 US India 2

DataasofMay2012

IndexMethodology
May2013
Appendix IV: Free Float Definition and Estimation

Guidelines

MSCI calculates the free floatadjusted market capitalization of each security in the equity index
universe.Theprocessoffreefloatadjustingmarketcapitalizationinvolves:
Defining and estimating the free float available to foreign investors for each security, using
MSCIsdefinitionoffreefloat.
Assigningafreefloatadjustmentfactortoeachsecurity(ForeignInclusionFactororFIF).
Calculatingthefreefloatadjustedmarketcapitalizationofeachsecurity.

The free floatadjusted market capitalization is used to calculate the weights of the securities in the
indices.
DefiningandEstimatingFreeFloat

MSCIs estimation of free float is based solely on publicly available shareholder information. For each
security,allavailableshareholdingsareconsideredwherepublicdataisavailable,regardlessofthesize
of the shareholding. MSCI may consult with analysts, other industry experts and official company
contacts, particularly where disclosure standards or data quality make the estimation of free float
difficult.

MSCIdefinesthefreefloatofasecurityastheproportionofsharesoutstandingthatisdeemedtobe
availableforpurchaseinthepublicequitymarketsbyinternationalinvestors.Inpractice,limitationson
theinvestmentopportunitiesavailabletointernationalinstitutionalinvestorsinclude:
Strategic and other nonfree float shareholdings: Stakes held by private or public
shareholderswhoseinvestmentobjectivesorothercharacteristicssuggestthatthoseholdings
arenotlikelytobeavailableinthemarket.Inpractice,disclosurerequirementsgenerallydo
not permit a clear determination of these investment objectives. Therefore, MSCI primarily
classifies shareholdings as free float or nonfree float based on a categorization of investor
typesintononstrategicandstrategicrespectively.

Limitsonshareownershipforforeigninvestors:Limitsontheproportionofasecuritysshare
capital that is authorized for purchase by nondomestic investors. Where they exist, these
foreignshareownershiplimitsaresetbylaw,governmentregulations,companybylawsand
otherauthoritativestatements.

Other foreign investment restrictions: Investment restrictions, other than those described
above, which materially limit the ability of international investors to freely invest in a
particular equity market, sector or security. There is typically no simple way to account for
these limitations in a benchmark, as these restrictions tend to be more subtle and complex,
andmayaffectdifferentmarketparticipantsindifferentways.

IndexMethodology
May2013
ClassificationofShareholderTypes

STRATEGICSHAREHOLDERTYPES(NONFREEFLOAT)
Governments Shareholdingsownedbygovernmentsandaffiliatedentitiesare
generallyclassifiedasnonfreefloat.

Companies Sharesownedbycompanies.Thisincludestreasuryshares
ownedbythecompanyitself.16

Banks Shareholdingsbybanksareconsideredasstrategic,excluding
shareholdingsheldintrustonbehalfofthirdpartiesthatare
deemedtobenonstrategic.(Shareholdingbytrustbanksin
Japanareconsiderednonstrategic).

Principalofficersandboard Sharesownedbythecompanysprincipalofficersormembersof
members the companys board of directors, including shares owned by
individuals or families that are related to or closely affiliated
with the companys principal officers, members of the
companysboardofdirectors,orfoundingmembersdeemedto
beinsiders.
Employees Shares of the employing companies, held by both officers and
nonofficers,whichareheldinavarietyofwaysincludingplans
sponsored by the employer for the purpose of retirement and
savings plans, incentive compensation programs and other
deferredandemployeepensionfunds.

12
Formostcountries,treasurysharesareincludedinthedeterminationofthetotalsharesoutstandingwhichisusedinthecalculationoftheindices,andtherefore
MSCI takes them into account in its calculation of free float. In other countries where treasury shares are excluded from the determination of the total shares
outstanding,theyareaccordinglynottakenintoconsiderationforthefreefloatcalculation.

IndexMethodology
May2013

NONSTRATEGICSHAREHOLDERTYPES(FREEFLOAT)
Individuals Shares owned by individuals, excluding shares owned by
individuals or families that are related to or closely affiliated
with the companys principal officers or members of the
companys board of directors or founding members deemed to
be insiders, and, also excluding those shareholdings held by
individuals, the significant size of which suggests that they are
strategicinnature.

Investment funds, mutual Sharesownedininvestmentfunds,mutualfundsandunittrusts,
fundsandunittrusts includingsharesownedinpassivelymanagedfunds.

Securitybrokers Nonstrategicinterestsheldbybrokerdealers(e.g.,tradesinthe
process of settlement, holdings in the process of being
transferred, as part of underwriting activity, etc.), unless held
within the same group or the nature of holding is deemed
strategic.
Pensionfunds Sharesownedinemployeepensionfunds,excludingsharesof
theemployingcompany,itssubsidiariesoraffiliates.

Insurancecompanies In principle, all stakes held by insurance companies are part of
freefloat.Forexceptionstothisgeneralprinciple,pleasereferto
the additional discussion on insurance companies presented
below.
Socialsecurityfunds Shares owned in social security funds, unless the funds
management is deemed to exert influence over the
managementofthecompany.

In the event that the above categories do not appropriately capture the nature of a specific
shareholding, its classification as free float or nonfree float will be determined based on a more
extensiveanalysis.
SpecialCases

Thefollowingguidelineswillbeappliedinanalyzingthespecialcasessetforthbelow:

Nomineesortrustees:Shareholdingsregisteredinthenameofanomineeortrusteeareclassifiedas
strategicornonstrategicbasedonananalysisofwhotheultimatebeneficialownerofthesharesis,
accordingtotheshareholdertypesdescribedabove.

IndexMethodology
May2013

Government agencies and governmentrelated investment funds: Shareholdings of government
agencies and governmentrelated investment funds are classified based on an analysis of the
objectiveoftheinvestmentandtheextentofgovernmentinvolvementinmanagingthecompanies.

Insurancecompanies:Shareholdingsbyinsurancecompaniesareconsideredasnonfreefloat,when
analysisshowsthattheseholdingsareunlikelytobemadeavailableasfreefloatinthemarket.This
analysistypicallylooksatthenatureoftheinsurancebusinessineachcountry,acompany'sbusiness
practiceswithitsgrouprelatedorothercompanies,andtheregulatoryenvironmentinthecountry,
including fiscal incentives. These factors, individually or combined, could restrict the insurance
company's shareholdings from being made freely available in the stock market. Therefore, the
treatmentofstakesheldbyinsurancecompaniesmaydifferfromcountrytocountry.Becauseofthe
structureofequityownershipandtheimportanceoffinancialalliancesforthecontrolofcompanies
insomecountries,insurancecompaniesstakesinothercompaniesmaybetreatedasstrategic.This
isthecaseinFrance,Germany,ItalyandJapan,wherestakesabove2%(France,Germany,andItaly)
andabove5%(Japan)aretreatedasstrategic.

DepositaryReceipts:SharesthataredepositedtobacktheissuanceofDepositaryreceiptssuchas
ADRs and GDRs are classified as nonstrategic, unless it is established that a specific stake held in
Depositaryreceiptsisstrategicinnature.

Shareswith"loyalty"incentives:Inapublicoffering,specialincentivesaresometimesprovidedto
retailinvestorsandaresubjecttoaminimumholdingperiod.Theseshareswillnotbeconsideredas
partofthefreefloatduringtheminimumholdingperiodiftheincentivesaredeemedtobematerial.
Ingeneral,aconditionalsharebonusinaratioof1to5(oranequivalentpricediscountof1/6th),or
more,willbeconsideredasmaterial.

Lockupperiods:Anysharesthataresubjecttolockupperiodswillbeconsideredasnonfreefloat
duringthelockupperiod.Attheendofthelockupperiod,theseshareswillbeclassifiedasstrategic
ornonstrategicbasedonthenatureoftheshareholder.
ForeignOwnershipLimits(FOLs)

ForthedeterminationoftheFOLs,thefollowingguidelinesareused:
For companies that impose ownership restrictions for nonEuropean Union investors, such
restrictionsarefullytakenintoaccountinthecalculationoftheFOL.
Regulatory requirements governing the ownership of shares by foreign investors in the country
wherethesecurityisincluded.
IncountrieswherecompaniesareallowedtoissueDepositaryReceipts(DRs)suchasADRsorGDRs
as an exception to the outstanding foreign ownership restrictions, the FOL calculation includes the
percentagerepresentedbythedepositaryreceipts.MSCIdefinesthepercentagerepresentedbyDRs
asthenumberofsharesrepresentedbyDRsissuedatthetimeofinitialofferingoftheDRsadjusted
forsubsequentcorporateeventsdividedbythetotalnumberofsharesoutstanding.
Similarly,ifacompanyexceptionallypermitscertainforeignshareholderstoownsharesinexcessof
themaximumstatedinthecompany'sbylawsandtheexceptionispubliclydisclosed,thisistaken
intoaccountinthecalculationoftheFOL.
When a company's foreign ownership restriction is defined as a proportion of the company's total
sharecapitalandthecompanyhasmultiplelistedshareclasseswithnospecificlimitsetforanyone
class,MSCIappliesthecompany'sFOLequallytoeachofthecompany'slistedshareclasses.
When a company's foreign ownership restriction is defined as a proportion of the company's total
sharecapitalandthecompanyhasmultipleshareclassesbutonlyoneislisted,MSCIcalculatesthe

IndexMethodology
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FOLbyapplyingthetotalsharesavailabletoforeigninvestors(aftertakingintoconsiderationforeign
nonfreefloatshareholdingsofnonlistedshares,ifany)onthelistedsharesonly.
Example:
CalculatingForeignOwnershipLimit(FOLs)

Listed NonListed Total
Numberofsharesoutstanding 500 500 1,000
Foreignnonfreefloatshareholdings 100 100
Foreignownershiplimitappliedtothecompany =40%
ForeignOwnershipLimit(FOL)appliedtolistedshares =((0.40*1,000)100)/500
=0.60
CalculationofFreeFloat

SecuritiesNotSubjecttoForeignOwnershipLimits(FOLs)

ForsecuritiesnotsubjecttoFOLs,thefreefloatofasecurityisestimatedasitstotalnumberofshares
outstandinglessshareholdingsclassifiedasnonfreefloat.

NonFreeFloatShareholdings(%)= NumberofSharesClassifiedasNonFreeFloatdividedbythe
TotalNumberofShares
FreeFloat(%) = 100%minusNonFreeFloatShareholdings(%)

SecuritiesSubjecttoFOLs

ForsecuritiessubjecttoFOLs,theestimatedfreefloatavailabletoforeigninvestorsisequaltothelesser
of:
Estimateoffreefloat,asdefinedabove.
FOLadjustedfornonfreefloatstakesheldbyforeigninvestors.
FreeFloatforForeignInvestors(%) = Lowerof:
100%minusNonFreeFloatShareholdings,includingDomesticandForeignShareholdings
FOLminusForeignNonFreeFloatShareholdings

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AssigningaFreeFloatAdjustmentFactor
MSCIfreefloatadjuststhemarketcapitalizationofeachsecurityusinganadjustmentfactorreferredto
astheForeignInclusionFactor(FIF).

SecuritieswithFreeFloatGreaterThan15%andNotSubjecttoFOLs

Forsecuritieswithfreefloatgreaterthan15%,theFIFisequaltotheestimatedfreefloat,roundedupto
theclosest5%.

SecuritieswithFreeFloatLessthan15%andNotSubjecttoFOLs

Forsecuritieswithfreefloatlessthan15%,theFIFisequaltotheestimatedfreefloat,roundedtothe
closest1%.


ForsecuritiessubjecttoFOLs,theFIFisequaltothelesserof:

Estimatedfreefloatavailabletoforeigninvestors,
- Roundeduptotheclosest5%,ifthefreefloatisgreaterthan15%.
- Roundedtotheclosest1%,ifthefreefloatislessthan15%.
FOLroundedtotheclosest1%.

SecuritiesAffectedbyOtherForeignInvestmentRestrictions

In the case where other foreign investment restrictions exist, which materially limit the ability of
international investors to freely invest in a particular equity market, sector or security, a Limited
Investability Factor (LIF) may be applied to insure that the investability objectives of the MSCI Indices
canbeachieved.

Thereistypicallynosimplewaytoaccountforthesetypesofinvestabilitylimitationsinabenchmark,as
theytendtobesubtleandcomplex,andmayaffectdifferentmarketparticipantsindifferentways.


IndexMethodology
May2013
For example, such restrictions may involve a complex process of investor validation and qualification,
restrictions on funds transfer, individual investment quota limits and various complex administrative
requirements. While instituted at a country level these restrictions may have different consequences
dependingonthecharacteristicsoftheinvestor,includinglegalstatus,sizeofassetsundermanagement
ordateofapplication.

In the case of individual companies with Foreign Ownership Limits, it may happen that the maximum
ownershipbynonnationalinvestorsisreachedwhiledepositaryreceiptsmaycontinuetobeavailable
to foreign investors. In such cases, the depositary receipts typically trade at a persistent premium
relative to the domestic shares, highlighting the difficulties for international investors to replicate the
securitysweightintheindex.

Therefore,wheredeemednecessary,aLIFwillbedeterminedandappliedbasedonanextensive,case
bycaseanalysis.TheapplicationofthisLIFpermitsamoreaccuratecomparisonofconstituentmarkets
andsecuritiesthathavemorecomplexandsubtlerestrictionsontheinvestmentprocesstomarketsand
securitieswhereinvestmentlimitationscanbeappropriatelyreflectedintheirstandardFIFs.

In cases where MSCI applies a LIF, the free float adjusted for limited investability is defined as the
productoftheavailablefreefloatforforeigninvestorsandtheLIF.
FreeFloatAdjustedforLimitedInvestability =FreeFloatforForeignInvestorstimestheLIF

Therefore,forsecuritiessubjecttootherforeigninvestmentrestrictions,theForeignInclusionFactoris
equaltothelesserof:
Estimatedfreefloatadjustedforlimitedinvestability,
- Roundeduptotheclosest5%,ifthefreefloatadjustedforlimitedinvestabilityisgreaterthan
15%.
- Roundedtotheclosest1%,ifthefreefloatadjustedforlimitedinvestabilityislessthan15%.
FOLroundedtotheclosest1%.

ForeignRoom

For a security that is subject to a Foreign Ownership Limit (FOL), in determining eligibility for index
inclusion and in determining an affected constituents weight in an index, MSCI will additionally take
intoconsiderationtheproportionofsharesstillavailabletoforeigninvestorsrelativetothemaximum
allowed (referred to as foreign room). In general, securities with low foreign room may be in some
instancesnoteligibleforindexinclusionorsubjecttoaweightreductionthroughtheapplicationofan
adjustmentfactor.Formoredetails,pleaserefertoSubsections2.3.5.1,2.3.5.2,3.1.6.and3.2.1.4.

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ThetablebelowprovidesalistofcountriesforwhichMSCImonitorsforeignroomonaquarterlybasis.
EligibleMarkets CountryName
AUSTRALIA
DevelopedMarkets(DM)
JAPAN
INDIA
INDONESIA
EmergingMarkets(EM) KOREA
PHILIPPINES
TAIWAN
KENYA
OMAN
QATAR
FrontierMarkets(FM) TUNISIA
UNITEDARABEMIRATES
VIETNAM
ZIMBABWE
Other than countries mentioned above, MSCI also monitors foreign room for telecommunication
companiesinCanada,airlinescompaniesinEuropeandUSAforwhichtheforeignroominformationis
availableonpublicsources.
CalculatingtheFreeFloatAdjustedMarketCapitalization

ThefreefloatadjustedmarketcapitalizationofasecurityiscalculatedastheproductoftheFIFandthe
securitysfullmarketcapitalization.
FreeFloatAdjustedMarketCapitalization =FIFtimestheSecuritysFullMarketCapitalization

The following examples illustrate the calculation of the free floatadjusted market capitalization of
securitieswithandwithoutFOLs.
Example:
CalculatingFreeFloatAdjustedMarketCapitalization:
SecuritiesNotSubjecttoFOLs
CompanyA CompanyB

Totalnumberofsharesoutstanding 10,000,000 10,000,000

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Numberofsharesclassifiedasnonfreefloat 4,300,000 8,760,000

Nonfreefloatshareholding(%) 43.0% 87.6%
Freefloat(%) 57.0% 12.4%
ForeignInclusionFactor(FIF) 0.60 0.12
Marketprice($) 500 500
Fullmarketcapitalization($mm) 5,000 5,000
Freefloatadjustedmarketcapitalization($mm) 3,000 600
Example:
CalculatingFreeFloatAdjustedMarketCapitalization:
CompanyC CompanyD CompanyE
Totalnumberofsharesoutstanding 10,000,000 10,000,000 10,000,000
Allsharesclassifiedasnonfreefloat 8,760,000 4,000,000 4,000,000
thoseheldbyforeigninvestorsasstrategic 1,000,000 1,000,000
Totalnonfreefloatshareholdings(%) 87.6 40.0 40.0
Freefloat(%) 12.4 60.0 60.0
Foreignownershiplimit(%) 33.3 33.3 33.3
Foreignstrategicshareholding(%) 10.0 10.0 0.0
Foreignownershiplimitlesstheforeign
strategicshareholding(%) 23.3 23.3 33.3
ForeignInclusionFactor(FIF) 0.12 0.25 0.33
Marketprice($) 500 500 500
Fullmarketcapitalization($mm) 5,000 5,000 5,000
Freefloatadjustedmarketcapitalization($mm) 600 1,250 1,650
TreatmentofNonVotingDepositaryReceiptsinThailand

AspartoftheCapitalMarketDevelopmentPlan,theSecuritiesandExchangeCommissionofThailand
setupNonVotingDepositaryReceipts(NVDRs)toimprovetheinvestabilityoftheThaicapitalmarket.
NVDRs are depositary receipts issued by the Thai NVDR Company Limited, a subsidiary of the Stock
Exchange of Thailand (SET) and backed by shares listed on the SET. NVDRs entitle their holders to all
financialbenefitsoftheunderlyingshares,exceptvotingrights.


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ForeignownershiplimitsthatapplytocommonsharesdonotapplytoNVDRs,andthereforetheNVDR
schememayallowforeigninvestorstoownagreaterpercentageofsharesthantheforeignownership
limit of certain companies. NVDRs are traded as local shares and as such, investors can buy and sell
themthroughthelocalpricecounter.

MSCI will consider increasing the weight of companies that are existing constituents of the MSCI
ThailandIndex,thatalsohavesizeableNVDRs.SizeableNVDRsaredefinedasthoserepresentingatleast
5percentoftheexistingconstituentstotaloutstandingcompanynumberofsharesandmustrepresent
atleasttheminimumsizeforadditioninThailand.Specifically,thefloatadjustedmarketcapitalization
of the NVDR proportion must meet onetime the minimum free floatadjusted market capitalization
requiredfortheMSCIThailandIndex.

IntheeventthatNVDRsofexistingconstituentsoftheMSCIThailandIndexdecreasebelow5percentof
the total outstanding company number of shares or the floatadjusted market capitalization of the
NVDR proportion does not meet the 2/3 times the minimum free floatadjusted market capitalization
requiredfortheMSCIThailandIndex,MSCIwillconsiderremovingtheproportionofNDVRsrepresented
intheindex.

MSCIwillrecognizeNVDRsassecuritiesbasedonthelocalprice.ThecalculationofForeignOwnership
Limit(FOL)andForeignInclusionFactor(FIF)willdifferinthefollowingscenarios:

ExistingConstituentIncludedwiththeLocalPrice
WhenanexistingconstituentoftheMSCIStandardThailandIndexisincludedwiththelocalprice,MSCI
includes the portion of NVDRs issued at the time of the review in the calculation of the Foreign
OwnershipLimit(FOL),fortheexistingconstituents.

TheForeignInclusionFactor(FIF)isequaltothelesserof:
Estimatedfreefloatavailabletoforeigninvestors,wheretheFOLusedinthecalculationfollowsthe
samedefinitiondescribedabove:
Roundeduptotheclosest5%,ifthefreefloatisgreaterthan15%,
Roundedtotheclosest1%,ifthefreefloatislessthan15%.
FOL rounded to the closest 1%, where the FOL is calculated as the sum of the foreign ownership
limits as defined in the companys bylaws or regulations rounded to the closest 1% and NVDRs in
issueasaproportionoftotaloutstandingcompanynumberofsharesroundedtotheclosest1%.

ExistingConstituentIncludedwiththeForeignPrice
When an existing constituent of the MSCI Standard Thailand Index is included with the foreign price,
MSCI will account for the NVDRs in the Index separately as securities based on the local price while
maintainingtheexistingconstituentwiththeforeignprice.TheForeignInclusionFactor(FIF)ofthelocal
pricesecurityisequaltotheportionofNVDRsissuedatthetimeofthereviewroundedtotheclosest
1%.

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AsFIFchangesrelatedtoNVDRreviewsareappliedintheindicesonasemiannualbasis,thereviewof
inclusionsorremovalsofNVDRsoccursonasemiannualbasistocoincidewiththeMayandNovember
SAIRs.

Example:
CalculatingForeignInclusionFactor(FIF)andForeignOwnershipLimit(FOL)foranExistingConstituent
includedwiththeLocalPriceintheMSCIThailandIndexSerieswithSizeableNVDRs:
CompanyA CompanyB CompanyC
Totalnumberofsharesoutstanding 10,000,000 10,000,000 10,000,000
Allsharesclassifiedasnonfreefloat 4,000,000 4,000,000 4,000,000
thoseheldbyforeigninvestorsasstrategic 1,000,000 100,000
Totalnonfreefloatshareholdings(%) 40.0 40.0 40.0
Freefloat(%) 60.0 60.0 60.0
Foreignownershiplimitasdefined
bythecompany(%) 33.3 33.3 33.3
PercentageofNVDRsissued 20.0 20.0 20.0
ForeignOwnershipLimit(%) 53.3 53.3 53.3
Foreignstrategicshareholding(%) 10.0 1.0
ForeignOwnershipLimitlesstheforeign
strategicshareholding(%) 43.3 53.3 52.3

ForeignInclusionFactor(FIF) 0.45 0.53 0.52
Marketprice($) 500 500 500
Fullmarketcapitalization($mm) 5,000 5,000 5,000
Freefloatadjustedmarketcapitalization($mm) 2,250 2,650 2,650

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Appendix V: Global Industry Classification Standard

(GICS)
Introduction

TheGlobalIndustryClassificationStandard(GICS)wasdevelopedbyMSCIincollaborationwithStandard
&Poors(S&P)toprovideanefficient,detailedandflexibletoolforuseintheinvestmentprocess.Itis
designed to respond to the global financial communitys need for a global, accurate, complete and
widely accepted approach to defining industries and classifying securities by industry. Its universal
approach to industry classification aims to improve transparency and efficiency in the investment
process.

KeyFeaturesoftheGICS

ThekeyfeaturesoftheGICSarethatitis:
Universal:theclassificationappliestocompaniesglobally.
Accurate:thestructurepreciselyreflectsthestateofindustriesintheequityinvestmentuniverse.
Flexible: the classification consists of four levels of analysis, ranging from the most general to the
mostspecializedsubindustry.
Evolutionary: annual reviews are conducted to ensure that the classification remains fully
representativeoftheuniverse.

Toprovidethelevelofprecisioncriticalintheinvestmentprocess,theGICSisdesignedwithfourlevels
ofclassifications:

TheGlobalIndustryClassificationStandard(GICS)

10Sectors

24IndustryGroups

68Industries

154SubIndustries

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TheGICShas10sectorclassifications:
Energy
Materials
Industrials
ConsumerDiscretionary
ConsumerStaples
HealthCare
Financials
InformationTechnology
TelecommunicationServices
Utilities.

PhilosophyandObjectivesoftheGICS

The way in which securities are classified into asset classes forms the basis of many important
investment decisions. The relative merits of each security are judged primarily within these asset
classes,andinvestmentdecisionsaretakenwithinthisframework.

ApproachestoIndustryClassificationSchemes

While grouping securities by country and regions is relatively straightforward, classifications by
industriesaremoredifficult.Therearemanyapproachestodevelopingindustryclassificationschemes,
someofwhicharediscussedbelow.

Atoneextremeisthepurelystatisticalapproach,whichissolelyfinancialmarketbasedandbackward
looking, using past returns. Aggregations are formed around correlation, often yielding nonintuitive
groupingsthataredissimilaracrosscountriesandregions.Anotherapproachattemptstodefineapriori
financialmarketorientedgroupsorthemes,suchascyclical,interestratesensitive,etc.Thedifficulty,
however,liesinfindingwidelyacceptedandrelativelystabledefinitionsforthesethemes.

Two other approaches begin with an economic perspective on companies. The first focuses on a
productionorientationwhiletheotheradoptsamarketordemandorientationincompanyanalysis.The
productionorientedapproachwaseffectiveinthepastinitsanalysisofthemicrostructureofindustries
from the producers standpoint. For instance, it segregated goods and services on the premise that it
was a different set of companies that provided each to consumers. As the structure of the global
economyevolved,limitationsofthisapproachbecameincreasinglyobvious.Theeverincreasingshare
of discretionary income brought about by economic development, emergence of the service era, and
theavailabilityandaccessibilityofinformationwiththeadventofnewcommunicationtechnologyhas
movedtheemphasisfromproducerstoconsumers.


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TheGICS:MarketDemandOriented

TheGlobalIndustryClassificationStandardisdesignedtobemarketdemandorientedinitsanalysisand
classification of companies. For example, drawing the line between goods and services is becoming
increasingly arbitrary as they are now commonly sold together. This distinction between goods and
services is replaced by adopting the more marketoriented sectors of Consumer Discretionary and
Consumer Staples, which group goods and services subindustries. In addition, the creation of large
standalone sectors such as Health Care, Information Technology and Telecommunication Services
accurately represents industries that provide significant value to the consumer in todays global and
integratedeconomy.Thisfurthercontributestoamoreuniformdistributionofweightsamongthe10
sectors.
GICSCompanyClassification

The GICS is used to assign each company to a subindustry according to its principal business activity.
Since the GICS is strictly hierarchical, a company can only belong to one grouping at each of the four
levels.

AnIllustrationoftheGICSTelecommunicationServicesSector:

50 Telecommunication
Services

5010 Telecommunication
Services
501010 - Diversified 501020 Wireless

Telecommunication Services Telecommunication Services

50101010 Alternative 50101020 Integrated
Carriers Telecommunication Services 50102010 Wireless
Telecommunication Services
Cable & Wireless (GB) AT&T (US) Vodafone Group (GB)

Level 3 Communications (US) Verizon Communications (US)

ClassificationbyRevenue

In order to provide an accurate, complete and longterm view of the global investment universe, a
companys revenues often provide a more stable and precise reflection of its activities than earnings.
Furthermore, industrial and geographical breakdowns of revenues are more commonly available than
earningsbrokendownthesamewayformostcompanies.Nevertheless,companyvaluationsaremore
closely related to earnings than revenues. Therefore, earnings remain an important secondary
considerationinacompanysindustryclassification.


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GeneralGuidelinesforClassification

The primary source of information used to classify securities is a companys annual reports and
accounts.Othersourcesincludebrokersreportsandotherpublishedresearchliterature.Asageneral
rule, a company is classified in the subindustry whose definition most closely describes the business
activitiesthatgenerateatleast60%ofthecompanysrevenues.

Example:Nokia(FI)

2006 Results Mobile Phones Multimedia Enterprise Solutions Networks
Revenues 60% 19% 3% 18%
Earnings 75% 24% 0% 15%
Classifiedas:

GICS Level GICS Code Code Description

Sector 45 Information Technology
Industry Group 4520 Technology Hardware & Equipment
Industry 452010 Communications Equipment
Sub-Industry 45201020 Communications Equipment

However,acompanyengagedintwoormoresubstantiallydifferentbusinessactivities,noneofwhich
contribute60%ormoreofrevenues,isclassifiedinthesubindustrythatprovidesthemajorityofboth
the companys revenues and earnings. When no subindustry provides the majority of both the
companysrevenuesandearnings,theclassificationwillbedeterminedbasedonfurtherresearchand
analysis. In addition, a company significantly diversified across three or more sectors, none of which
contributesthemajorityofrevenuesorearnings,isclassifiedeitherintheIndustrialConglomeratessub
industry(IndustrialSector)orintheMultiSectorHoldingssubindustry(FinancialsSector).

Example:GeneralElectric(US)

2006 Results Infrastructure Industrial Healthcare NBC Universal Commercial Finance Consumer Finance
Revenues 30% 21% 10% 10% 15% 14%
Earnings 34% 10% 12% 11% 19% 13%


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Classifiedas:
GICS Level GICS Code Code Description

Sector 20 Industrials
Industry Group 2010 Capital Goods
Industry 201050 Industrial Conglomerates
Sub-Industry 20105010 Industrial Conglomerates

Inthecaseofanewissue,theclassificationwillbedeterminedbasedprimarilyonthedescriptionofthe
companysactivitiesandproformaresultsasgivenintheprospectus.

ReviewofSubIndustryClassification

A companys subindustry classification will be reviewed either when a significant corporate
restructuringoccursorwhenanewannualreportisavailable.Inordertoprovideastablesubindustry
classification,whenreviewingacompanysclassification,changeswillbeminimizedinthesubindustry
classificationtotheextentpossiblebydisregardingtemporaryfluctuationsintheresultsofacompanys
differentactivities.
Intheeventthattheaboveguidelinesshouldnotappropriatelycaptureaparticularcompanysbusiness
activity,itsclassificationwillbedeterminedbasedonmoreextensiveanalysis.


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GICS (Global Industry Classification Standard)

Effective after close of business (US, EST) Friday August 29, 2008
S ector Ind ustry G roup In dustry S ub -Ind ustry

10 Energy 1010 Energy 101010 Energy Equi pment & Services 10101010 Oi l & Gas Drill ing
10101020 Oi l & Gas Equi pment & Servi ces
101020 Oil , Gas & Consum abl e Fuels 10102010 Integrated Oil & Gas
10102020 Oi l & Gas Expl oration & P roduction
10102030 Oi l & Gas Refini ng & Marketing
10102040 Oi l & Gas Storage & Transportation
10102050 Coal & Consumable Fuel s
15 Material s 1510 Materials 151010 Chem icals 15101010 Com modity Chemi cal s
15101020 Di versified Chem icals
15101030 Fertil iz ers & Agricultural Chem icals
15101040 Industri al Gases
15101050 Speci alty Chemicals
151020 Constructi on Materi al s 15102010 Construction Materials
151030 Containers & Packagi ng 15103010 Metal & Gl ass Contai ners
15103020 Paper Packaging
151040 Metal s & Mini ng 15104010 Al uminum
15104020 Di versified Metal s & Mini ng
15104030 Gol d
15104040 Preci ous Metals & M ineral s
15104050 Steel
151050 Paper & Forest P roducts 15105010 Forest Products
15105020 Paper Products
20 Industrials 2010 Capital Goods 201010 Aerospace & Defense 20101010 Aerospace & Defense
201020 Buildi ng Products 20102010 Bui lding Products
201030 Constructi on & Engi neering 20103010 Construction & Engineering
201040 El ectrical E quipment 20104010 Electri cal Com ponents & E quipment
20104020 Heavy E lectrical E quipm ent
201050 Industrial Congl omerates 20105010 Industri al Conglom erates
201060 Machinery 20106010 Construction & Farm Machinery & Heavy Trucks
20106020 Industri al Machinery
201070 Trading Compani es & Distri butors 20107010 Tradi ng Companies & Di stributors
2020 Com merci al & P rofessi onal S ervices 202010 Commercial Servi ces & Suppl ies 20201010 Com merci al Pri nti ng
20201050 Environmental & Facili ti es Services

20201060 Office Services & S upplies
20201070 Di versified Support S ervices
20201080 Securi ty & Alarm S ervices
202020 Profession al Services 20202010 Hum an Resource & E mployment Services
20202020 Research & Consul ti ng Services
2030 Transportation 203010 Air Freight & Logistics 20301010 Ai r Frei ght & Logisti cs
203020 Airli nes 20302010 Ai rl ines
203030 Marine 20303010 Mari ne
203040 Road & Rail 20304010 Rail roads
20304020 Trucking
203050 Transportati on I nfrastructure 20305010 Ai rport S ervices
20305020 Hi ghways & Rail tracks
20305030 Mari ne Ports & Servi ces
25 Consum er Di screti onary 2510 Automobi les & Com ponents 251010 Auto Components 25101010 Auto Parts & Equipm ent
25101020 Tires & Rubber
251020 Autom obiles 25102010 Automobi le Manufacturers
25102020 Motorcycl e Manufacturers
2520 Consumer Durabl es & Apparel 252010 Household Durables 25201010 Consumer E lectronics
25201020 Hom e Furnishings
25201030 Hom ebui lding
25201040 Household Appli ances
25201050 Housewares & Specialties
252020 Leisure Equi pment & Products 25202010 Lei sure Products
25202020 Photographi c Products
252030 Texti les, Apparel & Luxury Goods 25203010 Apparel, Accessories & Luxury Goods
25203020 Footwear
25203030 Textil es
2530 Consumer S ervices 253010 Hotels, Restaurants & Lei sure 25301010 Casinos & Gaming
25301020 Hotels, Resorts & Crui se Lines
25301030 Lei sure Facil ities
25301040 Restaurants
253020 Diversified Consumer Services 25302010 Education Servi ces
25302020 Speci alized Consum er Servi ces
2540 Media 254010 Media 25401010 Advertisi ng
25401020 Broadcasting
25401025 Cable & S atelli te
25401030 Movies & Entertainment
25401040 Publi shi ng
2550 Retai ling 255010 Distri butors 25501010 Di stributors
255020 Internet & Catalog Retai l 25502010 Catal og Retail
25502020 Internet Retail
255030 Mul ti line Retail 25503010 Departm ent S tores
25503020 General Merchandise Stores
255040 Specialty Retai l 25504010 Apparel Retail
25504020 Com puter & El ectronics Retail
25504030 Hom e Improvement Retail
25504040 Speci alty S tores
25504050 Automotive Retail
25504060 Hom efurnishing Retai l

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30 Consum er Stapl es 3010 Food & Staples Retai li ng 301010 Food & S taples Retail ing 30101010 Drug Retai l
30101020 Food Distri butors
30101030 Food Retail
30101040 Hyperm arkets & S uper Centers
3020 Food, Beverage & Tobacco 302010 Beverages 30201010 Brewers
30201020 Di stil lers & Vintners
30201030 Soft Drinks
302020 Food P roducts 30202010 Agricul tural Products
30202030 Packaged Foods & Meats
302030 Tobacco 30203010 Tobacco
3030 Household & P ersonal P roducts 303010 Household Products 30301010 Household P roducts
303020 Personal P roducts 30302010 Personal Products
35 Health Care 3510 Health Care E quipment & Services 351010 Health Care Equipm ent & S upplies 35101010 Health Care E quipment
35101020 Health Care S upplies
351020 Health Care Providers & Servi ces 35102010 Health Care Distributors
35102015 Health Care Servi ces
35102020 Health Care Facil ities
35102030 Managed Heal th Care
351030 Health Care Technol ogy 35103010 Health Care Technology
3520 Pharmaceuticals, Biotechnology & Life 352010 Biotechnol ogy 35201010 Bi otechnology
Sciences
352020 Pharmaceuti cals 35202010 Pharmaceuticals
352030 Life Sci ences Tools & S ervices 35203010 Life Sciences Tools & Services
40 Financials 4010 Banks 401010 Commercial Banks 40101010 Di versified Banks

40101015 Regional Banks
401020 Thrifts & Mortgage Fi nance 40102010 Thrifts & Mortgage Finance
4020 Di versified Financials 402010 Diversified Financi al S ervices 40201020 Other Diversified Financi al S ervices
40201030 Multi-Sector Holdi ngs
40201040 Speci alized Finance
402020 Consum er Finance 40202010 Consumer Fi nance
402030 Capi tal Markets 40203010 Asset M anagement & Custody Banks
40203020 Investment Banking & Brokerage
40203030 Di versified Capi tal Markets
4030 Insurance 403010 Insurance 40301010 Insurance Brokers
40301020 Life & Health Insurance
40301030 Multi-li ne Insurance
40301040 Property & Casualty Insurance
40301050 Reinsurance
4040 Real E state 404020 Real Estate Investm ent Trusts (REITs) 40402010 Di versified REIT's
40402020 Industri al REIT' s

40402030 Mortgage REIT' s
40402040 Office REIT's
40402050 Residenti al REIT' s
40402060 Retai l REI T's
40402070 Speci alized RE IT's
404030 Real Estate Managem ent & 40403010 Di versified Real Estate Activities
Developm ent
40403020 Real E state Operati ng Companies
40403030 Real E state Devel opment
40403040 Real E state Servi ces
45 Information Technology 4510 Software & Servi ces 451010 Internet S oftware & Servi ces 45101010 Internet Software & Services
451020 IT Servi ces 45102010 IT Consulting & Other Servi ces
45102020 Data Processing & Outsourced S ervices
451030 Software 45103010 Appl ication Software
45103020 Systems Software
45103030 Hom e Entertainment Software
4520 Technol ogy Hardware & Equi pment 452010 Communi cations E quipment 45201020 Com municati ons Equi pment
452020 Computers & P eri pherals 45202010 Com puter Hardware
45202020 Com puter S torage & Peripheral s
452030 El ectronic E quipment, I nstruments & 45203010 Electroni c Equipm ent & Instrum ents
Components
45203015 Electroni c Com ponents
45203020 Electroni c Manufacturi ng Services
45203030 Technol ogy Distributors
452040 Offi ce E lectronics 45204010 Office El ectronics
4530 Semiconductors & S em iconductor 453010 Semi conductors & Semi conductor 45301010 Semiconductor Equi pment
Equipm ent Equi pment
45301020 Semiconductors
50 Telecommuni cation 5010 Tel ecom munication S ervices 501010 Diversified Tel ecom municati on 50101010 Al ternati ve Carri ers
Services Services
50101020 Integrated Telecom muni cation S ervices
501020 Wireless Tel ecom munication S ervices 50102010 Wi rel ess Telecomm unicati on Services
55 Util ities 5510 Util ities 551010 El ectric Uti li ti es 55101010 Electri c Util ities
551020 Gas Util ities 55102010 Gas Utili ti es
551030 Mul ti -Uti liti es 55103010 Multi-Util ities
551040 Water Uti lities 55104010 Water Util ities
551050 Independent Power Producers & 55105010 Independent P ower Producers & Energy Traders
Energy Traders


IndexMethodology
May2013
GICSStructureReviewFrequency

MSCIandStandard&PoorsarecommittedtoensuringthattheGICSstructureremainsrelevantandup
todate.Thisisaccomplishedthroughanannualreviewofthestructure.Thisreviewincludesadetailed
internalanalysistodevelopaproposalforpotentialstructuralchangesandpublicrequestforcomments
andindepthclientconsultationswithvariousmarketparticipantsasameansofobtainingfeedbackon
proposedstructuralchanges.


IndexMethodology
May2013
AppendixVI:PriceSourceforSecurities
ForafullupdatedlistofpricesusedinMSCIsendofdayindexcalculationsbycountry,pleasereferto
theMSCIIndexCalculationMethodologythatcanbefoundat:
http://www.msci.com/eqb/methodology/meth_docs/MSCI_Feb12_IndexCalcMethodology.pdf

In certain countries significant foreign ownership limits exist for certain companies and/or industries.
WhentheFOLisreachedinthesecountries,foreigninvestorsmaytradewitheachotherinanorganized
local market, frequently at a price higher than that available to domestic investors. As a result, there
maybeseparatedomesticandforeignboardquotations.

MSCI regularly monitors the relative liquidity and foreign ownership availability of constituents with
separate domestic and foreign board quotations to determine whether prices for these constituents
should reflect the domestic or foreign board quotations. This review occurs on a quarterly basis to
coincidewiththeQuarterlyIndexReview.

Russia

Similarlytoothermarkets,inordertodeterminethemostappropriatepricesourcefortheMSCIRussia
indexconstituentsthefrequencyoftrading,12monthand3monthATVRsareconsideredasdescribed
in Sections 2.2.3 and 3.1.2.3. However, the eligible universes for Russia include alternative listings,
tradingintheUSdespitebeinginthedifferenttimezone.Formoredetailsonthecountryclassification
ofsecuritiespleaserefertoAppendixIII.

MarketsopenonSaturdayand/orSunday

IntheeventthatasecurityisnottradedonaMondaybutwastradedonthepreviousSaturdayand/or
Sunday,thesecuritywillhavethelatterpricecarriedforwardtotheMonday.


IndexMethodology
May2013
Appendix VII: Policy Regarding Trading Suspensions

andMarketClosuresDuringIndexReviews

PolicyRegardingTradingSuspensionsforIndividualSecuritiesDuringIndexReviews

MSCI will postpone the implementation of index review changes for the IMI constituents when the
affected securities are suspended on the day prior to the effective implementation date of the Index
Review.Thepostponedindexreviewchangeswillbeimplementedtwodaysafterthesecuritiesresume
trading.

PolicyRegardingMarketClosuresDuringIndexReviews

ForbothQuarterlyIndexReviewsandSAIRs,thefollowingprinciplesapplyincaseofmarketclosureson
thedayofimplementation.Asareminder,theeffectiveimplementationdateforQIRisasofthecloseof
thelastbusinessdayofFebruaryandAugust.TheeffectiveimplementationdatefortheSAIRisasofthe
closeofthelastbusinessdayofMayandNovember.

MarketClosuresDuetoScheduledStockMarketHolidays
When a given stock market is closed on the scheduled implementation date due to stock market
holiday,thechangewillbeeffectiveonthenextbusinessday,usingthepriceofthepreviousbusiness
daysclose.
MSCIwillchangetheimplementationdateforIndexReviewsifmarketscumulativelyconstitutingmore
than20%oftheMSCIAllCountryWorldIndexmarketcapitalizationareexpectedtobeeitherclosedor
experiencelowliquidityonthatday.

UnexpectedFullTradingDayMarketClosures
Intheeventthattheprimarystockmarketinacountryfailstoopenfortradingandremainsclosedfor
theentiretradingdayontheimplementationdateofthereviewduetoanunexpectedmarketclosure,
MSCIwillpostponetheimplementationoftheadditionstoanddeletionsfromtheMSCIAllCountries
WorldIndex(ACWI),aswellasthechangesinFIFandNOSwithacombinedimpactonthecountryindex
of at least 50bp, resulting from the SemiAnnual or Quarterly Index Review of the MSCI Global
InvestableMarketIndicesforthatspecificcountryindex.MSCIwillimplementtheabovechangesasa
resultoftheSemiAnnualorQuarterlyIndexReviewforthatcountryasofthecloseofthefirstbusiness
day(MondaytoFriday)thatthespecificmarketreopensfortradingandclosingpricesareavailable.In
the event of unexpected closures of stock markets in more than one country, MSCI will evaluate the
situationandmayapplyadifferentpolicy.


IndexMethodology
May2013
Forsmallercountries,however,intheeventofunexpectedmarketclosures,MSCIreservestherightto
implementtheSemiAnnualorQuarterlyIndexReviewusingtheclosingpriceofthelastdaythemarket
wasopen.
UnexpectedMarketClosuresofLessThanFullTradingDay

The trading suspensions of less than one full trading day will not trigger any postponement of the
implementation of the SemiAnnual or Quarterly Index Review of the MSCI Global Investable Market
Indices.

MarketOutageduringtheTradingDay

In the event that a market is affected by an outage during the trading day on the effective
implementationdate,MSCIwilldetermineitspricingpolicyfortherelevantcountryonacasebycase
basis.Inmakingitsdecision,MSCIwilltakeintoconsiderationanumberoffactors,includingthetime
and duration of the outage, information on the outage provided by the specific stock exchange, and
otherrelevantmarketinformation.

MSCIwillcommunicatealldecisionstakenwithrespecttomarketoutagesduringthedaythroughthe
regular client communication channels as well as via Reuters (Pages MSCIA and following) and
Bloomberg(MSCN).


IndexMethodology
May2013
Appendix VIII: Updating the Global Minimum Size

ReferencesandRanges

Asmarketsevolveduetoeventsandpriceperformance,theGlobalMinimumSizeReferenceandranges
arecalculatedonadailybasisusingthefollowinggeneralprinciples.
GeneralPrinciplesforUpdatingtheGlobalMinimumSizeReferencesandRanges

The Investable Market Index Global Minimum Size Reference for Developed Markets is the full
company market capitalization of the company at the same rank that determined the Investable
Market Index Global Minimum Size Reference at the previous SAIR as long as the cumulative free
floatadjusted market capitalization coverage of the existing DM Investable Equity Universe at that
rankisbetween99%and99.25%.Ifthecoverageatthatrankisnotbetween99%and99.25%,the
rankisresettothefirstcompanythatreachesacumulativefreefloatadjustedrepresentationofnot
lessthan99%(ifbelow)ornotmorethan99.25%(ifabove)andtheGlobalMinimumSizeReference
isrecalculated.
The Standard Index Global Minimum Size Reference for Developed Markets is the full company
marketcapitalizationofthecompanyrankedatthesamerankthatdeterminedtheStandardIndex
Global Minimum Size Reference at the previous SAIR as long as the cumulative free floatadjusted
marketcapitalizationcoverageoftheexistingDMInvestableEquityUniverseatthatrankisbetween
85 and 87%. If the coverage at that rank is not between 85% and 87%, the rank is reset to that
companythatreachesacumulativefreefloatadjustedrepresentationofnotlessthan85%(ifbelow)
ornotmorethan87%(ifabove)andtheGlobalMinimumSizeReferenceiscalculated.
The Large Cap Index Global Minimum Size Reference for Developed Markets is the full company
market cap of the company ranked at the same rank that determined the Large Cap Index Global
MinimumSizeReferenceatthepreviousSAIRaslongasthecumulativefreefloatadjustedmarket
capitalizationcoverageoftheexistingDMInvestableEquityUniverseatthatrankisbetween70and
72%.Ifthecoverageatthatrankisnotbetween 70%and72%,therankisresettothatcompany
thatreachesacumulativefreefloatadjustedrepresentationofnotlessthan70%(ifbelow)ornot
morethan72%(ifabove)andtheGlobalMinimumSizeReferenceisrecalculated.
ForEmergingMarketstheGlobalMinimumSizeReferenceforeachsizesegmentissetathalfofthe
USDGlobalMinimumSizeReferenceforDevelopedMarkets.

Using the rank of the company that determined the Global Minimum Size Reference at the previous
SAIRwithinacceptablerepresentationrangesisaimedatprovidingmorestableGlobalMinimumSize
References,comparedtoanapproachthatfocusesonatargetedpercentilecoverage.

Theexisting DMEquity InvestableUniverseisused tokeep the GlobalMinimumSizeReference upto
dateonadailybasisandatQuarterlyIndexReviews.ForSAIRs,thefullyupdatedDMEquityInvestable
Universeisused.

Example: At the previous SAIR of the Standard Indices, the Global
Minimum Size Reference was determined to be USD 3.95 billion and
reflected the market capitalization of the 1700th company in the DM
Equity Investable Universe with a cumulative free floatadjusted market
coverage of 85% at that rank. In the current SAIR, the market

IndexMethodology
May2013
capitalization of the 1700th company is chosen as the pro forma Global

Minimum Size Reference. If the cumulative free floatadjusted market
capitalizationcoverageofthe1700companiesisbetween8587%ofthe
DMEquityInvestableUniverse,thefullmarketcapitalizationofthe1700th
company will be used as the new Global Minimum Size Reference. If,
however,thecumulativefreefloatadjustedmarketcapitalizationofthe
DM Equity Investable Universe is 88%, then the rank of the company
determining the Global Minimum Size Reference is reset. In this case,
suppose the top 1600 companies cumulatively cover 87% of the free
floatadjustedmarketcapitalization,thenthemarketcapitalizationofthe
1600th company is the new Global Minimum Size Reference for the DM
Standard Indices. At the next SAIR, the full market capitalization of the
1600thcompanywillbetheproformaGlobalMinimumSizeReference.

IndexMethodology
May2013
Appendix IX: Minimum MarketRelative Liquidity

RequirementsfortheStandardIndex

TheMarketRelativeLiquidityRequirementforinclusionintheStandardIndexisderivedasfollows:

Companiesarefirstsortedindescendingorderbyfullmarketcapitalizationandthecumulativefree
floatadjustedmarketcapitalizationcoverageiscalculated.
Theuniverseoflargeandmidcapcompaniesisdefinedwhen85%ofthefreefloatadjustedmarket
capitalizationcoverageoftheMarketInvestableEquityUniverseisachieved.
Thesecuritieswithinthisuniversearethensortedbydescendingorderof12monthATVR.
The12monthATVRatthe98thpercentileofthissorteduniverseisnoted.
The MarketRelative Liquidity Requirement is then defined as 90% of that 12month ATVR level,
subjectto:
o Aminimumof20%12monthATVRinDevelopedMarketsand15%12monthATVRinEmerging
Markets
o Amaximumof50%12monthATVRinbothDevelopedandEmergingMarkets

This MarketRelative Liquidity Requirement is periodically updated and published at the time of the
SAIR.

The12monthATVRthresholdsfortheMay2013SemiAnnualIndexReviewareshownbelow.17
Developed Markets Emerging Markets
Minimum Minimum
Country ATVR Country ATVR
AUSTRALIA 43% BRAZIL 35%
CANADA 31% CHILE 18%
EUROPE 23% CHINA 42%
HONG KONG 26% COLOMBIA 15%
ISRAEL 22% CZECH REPUBLIC 50%
JAPAN 44% EGYPT 15%
NEW ZEALAND 20% HUNGARY 37%
SINGAPORE 24% INDIA 36%
USA 20% INDONESIA 19%
KOREA 28%
MALAYSIA 21%
MEXICO 15%
MOROCCO 16%
PERU 23%
Stand-Alone Markets PHILIPPINES 15%
Minimum POLAND 15%
Country ATVR RUSSIA 50%
China A 50% SOUTH AFRICA 39%
TAIWAN 25%
THAILAND 44%
TURKEY 21%

17
TheATVRvaluesusedintheregularIndexReviewsarenotrounded.

IndexMethodology
May2013
Appendix X: MSCI Frontier Markets Indices Country

Classification

The table below provides the country classification in terms of minimum size and liquidity that MSCI
usesasbasisfortheconstructionandmaintenanceoftheMSCIFrontierMarketsIndices.
VeryLowLiquidity LowLiquidity AverageLiquidity

(2.5%ATVR) (5%ATVR) (15%ATVR)
Kuwait
Qatar
LargerFrontierMarket
SaudiArabia*
UnitedArabEmirates
Bahrain Argentina Bangladesh

BosniaHerzegovina Estonia Pakistan
Botswana Jordan Vietnam
Bulgaria Kazakhstan
Croatia Kenya
Ghana Mauritius
Jamaica Nigeria
SmallerFrontierMarket Lebanon Oman
Lithuania Romania
Palestine Slovenia
Serbia Tunisia
SriLanka
Trinidad&Tobago
Ukraine
Zimbabwe
*SaudiArabiaisnotincludedintheMSCIFrontierMarketsIndicesbutintheMSCIGCCCountriesDomesticIndices

The categorization is reviewed semiannually during the May and November SemiAnnual Index
Reviews.AttheMay2013SemiAnnualIndexReview,ArgentinaandOmanwerereclassifiedfromthe
AverageLiquiditytotheLowLiquiditycategory,andCroatiawasreclassifiedfromtheLowLiquidityto
theVeryLowLiquiditycategory.


IndexMethodology
May2013
AppendixXI:Transition

MSCI transitioned the current Standard Index, the Small Cap Index and all indices derived from the
StandardIndextotheGlobalInvestableMarketIndicesmethodologydescribedinthisbookattheend
ofMay2008.

All indices that are constructed with the Standard Indices as their basis, such as the GDPweighted
indices,10/40Indicesandothercustomindices,HighDividendYieldIndices,theMSCIGlobalValueand
GrowthIndices,etc.,continuedtobederivedfromtheStandardIndicesthroughoutthetransition.

The transition of the MSCI Standard and the MSCI Small Cap Indices to the MSCI Global Investable
Market Indices methodology occurred in two phases. The first phase occurred as of the close of
November30,2007andthesecondphaseoccurredasofthecloseofMay30,2008.

AllindicesderivedfromtheMSCIStandardIndicesfollowedthetwophasetransitionexcepttheMSCI
EuroandPanEuroIndiceswhichweretransitionedinonephaseinNovember2007.

Thetransitionwassynchronizedforallmarketsandcomposites.

Current Global Investable Market Indices

DM EM DM EM
Standard Standard Standard Standard

Indices Indices Indices Indices
(Large + Mid) (Large + Mid)
MSCI Global
Enhancements & Investable
Transition Period Market Indices
Large Cap Large Cap
Segmented by:
Size
Style
Mid Cap Mid Cap Industry
Small
Cap
Small Cap Small Cap
Indices
Indices Indices
Duringthetransitionperiod,MSCIwasproducingtheMSCIProvisionalStandardandProvisionalSmall
Cap Indices to assist investors in understanding the changes that would have occurred if the Global
Investable Market Indices methodology had been immediately implemented in the current MSCI
Standard and Small Cap Indices. The Provisional Indices also provided increased flexibility to current

IndexMethodology
May2013
investorswhowishedtotransitiontotheGlobalInvestableMarketIndicesmethodologyontheirown
schedule.

TheProvisionalStandardandProvisionalSmallCapIndicesandthenewSizeSegmentandStyleIndices
thatwerecreatedbasedonthismethodologywereofficialMSCIindicesand,assuch,couldbeusedfor
avarietyofpurposes,includingasthebasisfornewinvestmentmandatesandforinvestmentvehicles
such as passive mutual funds, exchange traded funds and listed and overthecounter derivative
contracts.
ProvisionalIndices

Provisional Indices, together with the constituents, could be used by clients who wished to measure
their performance against such indices, ahead of MSCIs official implementation schedule. The
ProvisionalIndicesandthenewSizeSegmentandStyleIndicesweremaintainedaccordingtotheindex
maintenanceprinciplesoftheGlobalInvestableMarketIndicesmethodology.

DerivingtheSizeSegmentIndicesatInitialConstructionoftheProvisionalIndices
IntheinitialconstructionoftheProvisionalSizeSegmentIndices,theSegmentNumberofCompaniesin
each sizesegment and the Market SizeSegment Cutoffs was determined as described in section 2 of
thismethodologybook.However,withaviewtoreducingtransitionturnoverandongoingturnover,the
followingadditionalruleswereusedatinitialconstruction:

TheStandardIndicestargetedmarketcoverageandsizeintegrityasdescribedin Sub-section 2.3.3:
Determining the Market Size-Segment Cutoffs and Associated Segment Number of Companiesusing
the 85% 5% Market Segment Coverage Range, and specifically aiming at reaching 85%, when
possible.However,aGlobalMinimumSizeRangeof0.5timesto1.05timestheGlobalMinimumSize
Reference,ratherthan0.5timesto1.15,wasusedforinitialconstructiontolimitturnoverduringthe
transition,aslongasmarketcoveragedidnotexceed90%.
The buffer zones used in maintaining the MSCI Global Investable Market Indices at SemiAnnual
IndexReviewswerefullypopulatedatinitialconstructionwithcompaniesfromthecurrentStandard
and Small Cap Indices, in order to minimize turnover during the transition. If a company was
represented in both the Standard and the Small Cap Index, it was evaluated using the eligibility
requirements of the Standard Index only. For details on the application of buffer zones in the
assignment of companies to sizesegments, please see Sub-section 3.1.5.1: Using Buffer Zones to
Manage the Migration of Companies between Size-Segment Indices.
At initial construction the Market SizeSegment Cutoffs and associated Segment Number of
Companies of the Investable Market Segment were derived by including all companies equal to or
largerthantheGlobalMinimumSizeReferenceforthissegment.

PublicationofProvisionalIndices

Inpreparationforthetransition,asofthecloseofMay3,2007,thelistofproformaindexconstituents
under the Global Investable Market Indices methodology for the Provisional MSCI Standard and Small
CapIndicesineachmarketandforallProvisionalIndicesderivedfromtheStandardindicesweremade

IndexMethodology
May2013
availabletoclients.TheProvisionalIndicesstartedwithabaselevelof1000asofthecloseofMay31,
2007.AllGlobalInvestableMarketIndices,includingtheProvisionalStandardandProvisionalSmallCap
Indices,werecalculatedasofJune1,2007andpublisheddailyasofthecloseofJune5,2007.

AftertheMay2008SAIR,theProvisionalStandardandProvisionalSmallCapIndiceswerediscontinued.
ReflectingConstituentChangesintheStandardIndicesattheTransitionPoints

InthefirstphaseofthetransitioninNovember2007:
AftertheProvisionalStandardIndiceswererebalancedaspertheSAIR,theywerecomparedtothe
relevantStandardIndices.
All companies that were in the Provisional Standard Index but not in the corresponding Standard
IndexwereaddedtotheStandardIndexathalfoftheirfreefloatadjustedmarketcapitalization,and
all companies that were not in the Provisional Standard Index but in the corresponding Standard
Index were retained in the Standard Index but at only half of their free floatadjusted market
capitalization.

InthesecondandfinalphaseinMay2008:
TheProvisionalStandardIndiceswererebalanced.
AnyandalldifferencesbetweentherebalancedProvisionalStandardIndexandtheStandardIndex
werefullyimplementedintheStandardIndices.

The transition of the Small Cap Indices was synchronized with the transition of the Standard Indices,
followingthesametimelineandapproach.

IndexInclusionFactorswereusedtomanagetheindicesthroughoutthetransition.

ThetablebelowprovidessomeexamplesofIndexInclusionFactorsforcompaniesthroughthephasesof
the transition. The index market capitalization of securities was determined as Index Inclusion
Factor*FIF*SecurityFullMarketCapitalization.

Phase I Phase II
Provisional
Proforma Index Standard Proforma Provisiona Proforma Standard (final)
Current Index
Inclusion Flag Inclusion Factor Index Inclusion Flag Inclusion Factor
Inclusion Flag
(November 30, (November 30, 2007) (May 30, 2008) (May 30, 2008)
2007)
Existing Constituents
Company A 1 1 1 1 1
Company B 1 0 0.5 0 0
Company C 1 0 0.5 1 1
Company D 1 1 1 0 0
New Constituents
Company E 0 1 0.5 1 1
Company F 0 1 0.5 0 0
Company G 0 0 0 1 1

IndexMethodology
May2013
For example, say companies A, B, C and D were current constituents of the

StandardIndex.CompanyAcontinuedasaconstituentoftheStandardIndex
under the Global Investable Market Indices methodology. It had an Index
InclusionFactorof1throughoutthetransition.CompanyBwasnoteligiblefor
inclusion in the Standard Index under the Global Investable Market Indices
methodology. So, in the first phase, it was marked for removal from the
StandardIndexandanIndexInclusionFactorof0.5wasappliedtoit.Inthe
second phase the Index Inclusion Factor went to 0 indicating removal of the
companyfromtheStandardIndex.CompanyCwasalsoidentifiedforremoval
from the Standard Index and had an Index Inclusion factor of 0.5 in the first
phase.Butwhenevaluatedatphase2,itbecameeligibleforinclusionandthe
IndexInclusionFactorwaschangedto1forthesecondphase.CompanyDwas
retainedintheStandard Indexwhen evaluated in thefirstphaseandcarried
anIndexInclusionFactorof1forthatphase.Butinphase2,itwasnolonger
eligibleforinclusionintheStandardIndexand,henceitsIndexInclusionFactor
waschangedto0.0.

CompaniesE,F,andGwerenewconstituentsthatwereeligibleforinclusion
under the Global Investable Market Indices methodology. Company E
remainedeligibleforinclusiontotheStandardIndexthroughoutthetransition
andhadanIndexInclusionFactorof0.5inthefirstphaseand1inthesecond
phase.CompanyF,wasidentifiedasanadditioninthefirstphase,butatthe
secondphaseitwasnolongereligibleforinclusion.ItsIndexInclusionFactor
of 0.5 in the first phase was therefore changed to 0 in the second phase.
CompanyGwasnoteligibleforinclusioninthefirstphaseandcarriedanIndex
InclusionFactorof0.Butinthesecondphase,itbecameeligibleforinclusion
and its Index Inclusion Factor was reset to 1, indicating full inclusion in the
StandardIndex.

IndexMethodology
May2013
IndexReviewsandTreatmentofOnGoingMarketEventsDuringtheTransition
Period
During the transition period, from May 4, 2007 through May 30, 2008, MSCI was maintaining its
schedule of regular index reviews for its Standard and Small Cap Index series. The Provisional Indices
andSizeSegmentIndicesweremaintainedaccordingtotheindexmaintenanceprinciplesoftheGlobal
InvestableMarketIndicesmethodology.

Tominimizechangesnotrelatedtothetransition,allchangesintheStandardIndiceswerecoordinated
withtheProvisionalIndices.Onlyverysignificantchangesintheequitymarketsandconstituentswere
reflected during the Quarterly Index Reviews for the existing Standard and Small Cap Indices. All new
additionsofcompaniestotheProvisionalStandardIndicesresultingfromIPOsandtheAugust2007and
February 2008 QIRs were also included in the Standard Indices at their full free floatadjusted market
capitalization.

OngoingEventRelatedChanges

EffectivefromMarch29,2007andthroughoutthetransition,theongoingmaintenanceoftheStandard
andSmallCapIndiceswasmadewithaviewtominimizepotentialreverseturnoverintheindices.

Effective May 4, 2007 all and only securities newly added to the Provisional Standard and Small Cap
IndicesasaresultofongoingmaintenanceofcorporateeventscouldbeaddedtotheStandardandto
theSmallCapIndices,respectively.BeforeMay31,2007thesewereadditionstothelistofproforma
constituentsoftheProvisionalStandardandProvisionalSmallCapIndices.

May2007AnnualFullCountryIndexReviewoftheStandardIndicesandSemiAnnualIndexReviewofthe
SmallCapIndex

The changes resulting from the May 2007 Annual Full Country Index Review of the existing Standard
Indices were announced on May 3, 2007, earlier than its normal announcement schedule, to coincide
withtheavailabilityoftheproformalistofconstituentsoftheMSCIGlobalInvestableMarketIndices.
Further,inordertominimizereverseturnover,theMay2007AnnualFullCountryIndexReviewforthe
StandardIndicesusedthesameGlobalMinimumSizeRequirementandotherinvestabilityrequirements
that were applied in the construction and maintenance of the Provisional Standard Indices. Only
securitiesthatwereconstituentsoftheProvisionalStandardIndiceswereaddedtotheStandardIndices
to bring the Industry Group representation closer to 85%, if necessary. If an Industry Group was over
represented,onlycompaniesnotincludedintheProvisionalStandardIndicesweredeleted.

The current Small Cap Indices continued to target securities of companies in the full market
capitalization range of USD 2001,500 million that defines the small cap universe under the current
SmallCapIndexmethodology.ThechangesresultingfromtheMay2007SAIRofthecurrentSmallCap

IndexMethodology
May2013
IndicesweremadeavailableonMay3,2007,alongwiththefinalproformalistofconstituentsofthe
MSCI Global Investable Market Indices. In order to minimize reverse turnover, the May 2007 SAIR for
theSmallCapIndicesusedthesameGlobalMinimumSizeRequirementandotherinvestabilityscreens
that were applied in the construction and maintenance of the Provisional Small Cap Indices. Only
securities that were constituents of the Provisional Small Cap Indices were added to the Small Cap
Indices to bring the Industry Group representation closer to 40%, if necessary. Potential deletion of a
securityfromtheSmallCapIndicesduetoexcessiveindustrygrouprepresentationwasconsideredonly
ifitwasnotaconstituentoftheProvisionalSmallCapIndices.

August2007QuarterlyIndexReview

In August 2007, the first QIR for the Provisional Standard and Provisional Small Cap Indices was
conducted under the principles of the Global Investable Market Indices methodology. Newly eligible
companies that were included in the Provisional Standard Indices as a result of the August 2007 QIR
werealsoadded totheexistingStandardIndicesasofthecloseofAugust 31,2007.Themigration of
companiesbetweentheProvisionalStandardandProvisionalSmallCapIndiceswasalsoreflectedinthe
StandardandSmallCapIndices.

November2007SemiAnnualIndexReview

The changes in the Standard and Small Cap Indices during the November 2007 Index Review were
determinedintwosteps:
IdentificationofthechangesresultingfromtheregularSemiAnnualIndexReviewand;
IdentificationoftheadditionalchangesresultingfromthefirstphaseofthetransitiontotheGlobal
InvestableMarketIndicesMethodology.

Inthefirststep,MSCIperformedtheregularSemiAnnualIndexReviewoftheStandardandSmallCap
Indices under the principles of the Global Investable Market Indices Methodology, meaning that all
changesintheStandardandSmallCapIndiceswerecoordinatedwiththeSemiAnnualIndexReviewof
theProvisionalStandardandProvisionalSmallCapIndices.SimilartotheAugust2007QuarterlyIndex
Review,theadditionstoanddeletionsfromtheProvisionalStandardandProvisionalSmallCapIndices
resulting from the review were fully added to or deleted from the current Standard and Small Cap
Indices.

In the second step, MSCI determined the difference in each constituents free floatadjusted market
capitalizationbetweentheindicesresultingfromthefirststepaboveandthecorrespondingPostSemi
Annual Index Review Provisional Standard and Provisional Small Cap Indices. Then, onehalf of this
differencewasaddedtoordeletedfromtheStandardandSmallCapIndices.Thiswasimplementedby
applyingtheIndexInclusionFactor(IIF)of0.5toalladditionsanddeletionsresultingfromthetransition.


IndexMethodology
May2013
February2008QuarterlyIndexReview

In February 2008, the second QIR for the Provisional Standard and Provisional Small Cap Indices was
conducted under the principles of the Global Investable Market Indices methodology. Newly eligible
companies that were included in the Provisional Standard Index as a result of the February 2008 QIR
were also added to the Standard Index as of the close of February 29, 2008. The migrations of
companies between the Provisional Standard and Provisional Small Cap Indices were also reflected in
theStandardandSmallCapIndices.

May2008SemiAnnualIndexReview

In May 2008, the second SAIR for the Provisional Standard and Provisional Small Cap Indices was
conducted under the principles of the Global Investable Market Indices methodology. The addition or
deletionoftheremainingdifferenceofthefreefloatadjustedmarketcapitalizationforeachconstituent
wasimplementedintheStandardandSmallCapIndicesasofthecloseofMay30,2008.Afterthis,the
ProvisionalIndiceswerediscontinuedasofthecloseofJune30,2008.
TransitioningOtherIndices

GlobalValueandGrowthIndices

TheGlobalValueandGrowthIndicesfollowedthetimelineandimplementationoftheStandardIndices.

Startingwiththefirstphaseofthetransition,thestyleclassificationoftheProvisionalMSCIGlobalValue
and Growth Indices prevailed over that of the current Global Value and Growth Indices. Therefore, at
thefirstphaseofthetransition,theconstituentsoftheexistingMSCIGlobalValueandGrowthIndices
acquiredstyleinclusionfactorsderivedfromtheGlobalInvestableMarketIndices.Inthoserarecases
whereanexistingconstituentofthecurrentGlobalValueandGrowthIndiceswerenotincludedinthe
GlobalInvestableMarketIndices,thoseconstituentsretainedtheircurrentstyleinclusionfactors.

EuroandPanEuroIndices

The MSCI Euro and MSCI PanEuro Indices are subsets of the Standard MSCI EMU and MSCI Europe
Indices,respectively,andaimedtocapture90%ofthemarketcapitalizationofthebroaderbenchmarks.

TheMSCIEuroPanEuromethodologyevolvedtothemethodologyfortheLargeCapIndexunderthe
GlobalInvestableMarketIndicesmethodology.Consequently,

TheenhancedMSCIPanEuroIndexbecameidenticaltotheMSCILargeCapEuropeIndexunderthe
MSCIGlobalInvestableMarketIndicesmethodology.

IndexMethodology
May2013
TheenhancedMSCIEuroIndexbecameidenticaltotheMSCILargeCapEMUIndexundertheMSCI
GlobalInvestableMarketIndicesmethodology.

The transition of the MSCI Euro and MSCI PanEuro Indices to the Global Investable Market Indices
methodologytookplaceinasinglephase,asofthecloseofbusinessonNovember30,2007.

IndicesBasedontheStandardIndices

Indices constructed with the Standard Indices as their basis, such as the High Dividend Yield Indices,
GDPweighted indices, 10/40 Indices and other custom indices, continued to be derived from the
StandardIndicesthroughoutthetransition.

GCCCountriesIndices

MSCItransitionedthecurrentMSCIGCCCountriesIndicestotheenhancedMSCIGCCCountriesIndices
Methodology.

The transition of the MSCI GCC Countries Indices to the enhanced MSCI GCC Countries Indices
Methodologyoccurredinonesinglephase.ThetransitionwasimplementedasofthecloseofMay30,
2008.

Inordertoaddtransparencytothetransitionprocessandtoassistclientsinplanningandimplementing
their individual transition strategies, MSCI provided Provisional Indices for the MSCI GCC Countries
Indices constructed and maintained according to the enhanced MSCI GCC Countries Indices
Methodology.


IndexMethodology
May2013
SummaryTransitionTimeline

ThetransitiontimelinefortheStandardIndex(andSmallCapIndex)isasshownbelow.


IndexMethodology
May2013
SummaryTransitionTimeLine
Date Provisional/New Standard&SmallCap
March28,2007 FinalMSCIGlobalInvestableMarketIndicesmethodology Noimpact.

wasannounced.
MayAnnualIndexReview Initial construction based on data used in Standard and RegularAnnualIndexReviewoftheCurrentStandardIndex.,takinginto

Small Cap Index Review, including population of the accountnewminimumsizerequirements.
buffers.

RegularSAIRoftheCurrentSmallCapIndex.
Corporateevents,IPOsandothernewcompanyadditionstreatedin
accordancewiththecurrentindexmethodology.
May3,2007 ListofindexconstituentsforProvisionalStandardand ResultsofMayAnnualIndexReviewwereannounced.

ProvisionalSmallCapIndices,undertheGlobalInvestable
MarketIndicesmethodologyforeachoftheMSCI
ProvisionalStandardandProvisionalSmallCapIndices,
wasmadeavailable.
May31,2007 Provisional Indices start with a base level of 1000 as of AnnualIndexReviewchangesbecameeffective.

thecloseofMay31,2007andcalculationbegan
June5,2007 StartofdailypublicationoftheProvisionalStandardand Noimpact.

ProvisionalSmallCapIndices.

New Large Cap, Mid Cap, and Investable Market Indices

alsopublished.
August2007 QIR of the Provisional and new indices using buffers QIRofthecurrentStandardandSmallCapIndicesreflectingchangesin
zones, updates of NOS, FIFs, IPO and newly eligible NOS,FIF,etc.
companiesinclusions,etc.

AdditionofIPOsandnewlyeligiblecompaniestotheProvisional
StandardIndexSerieswerereflectedintheStandardIndexattheirfull
weight.
MigrationsbetweentheProvisionalStandardandProvisionalSmallCap
IndiceswerealsoreflectedintheStandardandSmallCapIndices.
November2007 SAIRforProvisionalandSizeSegmentIndices. First phase of the transition included in QIR for Standard Indices and
SAIRforSmallCapIndices.

November30,2007 RebalancedProvisionalIndicesimplemented. PartiallytransitionedStandardandSmallCapIndicesimplemented.
February2008 QIR of Provisional and new SizeSegment Indices using QIRofthecurrentStandardandSmallCapIndicesreflectingchangesin

buffers,updatesofNOS,IPOinclusions,etc. NOS,FIFetc.

Addition of IPOs and newly eligible companies to the Provisional
StandardIndexSerieswerereflectedintheStandardIndexattheirfull
weight.

MigrationsbetweentheProvisionalStandardandProvisionalSmallCap
IndiceswerealsoreflectedintheStandardandSmallCapIndices.

May2008SAIRand SAIRforProvisionalandSizeSegmentIndices. SecondandfinalphaseofthetransitionincludedinMayAnnualIndex
AnnualReview ReviewforStandardIndicesandSAIRforSmallCapIndices.
May30,2008 FullytransitionedStandardandSmallCapIndicesimplemented.
AfterJune1,2008 ProvisionalIndicesdiscontinued. AllMSCIglobalequityindicesoperateunderGlobalInvestableMarket

Indicesmethodology.

IndexMethodology
May2013
AppendixXII:TransitionofMSCIChinaAIndex

MSCIwilltransitionthecurrentMSCIChinaAIndextotheMSCIGlobalInvestableMarketIndices(GIMI)
methodologyintwophasescoincidingwiththeAugust2009QuarterlyIndexReviewandtheNovember
2009SemiAnnualIndexReview.

FirstphaseofthetransitioncoincidingwiththeAugust2009QuarterlyIndexReview:
The enhanced MSCI China A Index would be rebalanced as per the GIMI Methodology and
comparedtothecurrentMSCIChinaAIndex.
AllcompaniesthatwouldbeintheenhancedMSCIChinaAIndexbutnotinthecurrentMSCI
China A Index would be added to the current MSCI China A Index at half of their free float
adjusted market capitalization, and all companies that would not be in the enhanced MSCI
China A Index but in the current MSCI China A Index would be retained in the current MSCI
ChinaAIndexbutatonlyhalfoftheirfreefloatadjustedmarketcapitalization.

SecondphaseofthetransitioncoincidingwiththeNovember2009SemiAnnualIndexReview:
TheenhancedMSCIChinaAIndexwouldberebalanced.
All differences between the rebalanced enhanced MSCI China A Index and the current MSCI
ChinaAIndexwouldbefullyimplementedinthecurrentMSCIChinaAIndex.

MethodologyAdaptationsSpecifictotheMSCIChinaAIndex

The MSCI China A Index shares a methodology similar to that of the MSCI Global Investable Market
Indices,withthefollowingmethodologyadaptations:

EquityUniverse:

For the MSCI China A Index, the universe is defined as all China A shares listed on the Shanghai and
Shenzhen Stock Exchanges. In general, all listed equity securities, or listed securities that exhibit
characteristics of equity securities, except investment trusts, mutual funds and equity derivatives, are
eligibleforinclusionintheuniverse.SecuritieswithaSTor*STstatusareexcludedfromtheEquity
Universe.Ingeneral,MSCIwilldeletesuchsecuritiesfromtheMSCIChinaAIndexasofthecloseofthe
lastbusinessdayofeachmonthfollowingtheassignmentofaSTor*STstatus,withatleasttwofull
businessdaysnotice.

EquityUniverseMinimumSize:

TheEquityUniverseMinimumSizeappliedtotheMSCIChinaAIndexisbasedontheGlobalMinimum
SizeReferenceoftheEmergingMarketsundertheMSCIGlobalInvestableMarketIndicesMethodology.


IndexMethodology
May2013

AssigningaFreeFloatAdjustmentFactor:

MSCIdefinesthefreefloatofaChinaAsecurityastheproportionoftradablesharesoutstandingthat
aredeemedtobeavailableforpurchaseinthepublicequitymarketsbydomesticinvestors.Inpractice,
limitations on free float available to domestic investors also include strategic and other shareholdings
thatarenotconsideredpartofavailablefreefloat.

MSCIfreefloatadjuststhemarketcapitalizationofeachsecurityusinganadjustmentfactorreferredto
astheDomesticInclusionFactor(DIF).

IndexInclusionFactor:

IndexInclusionFactorswillbeusedtomanagetheindicesthroughoutthetransition.
ThetablebelowprovidessomeexamplesofIndexInclusionFactorsforcompaniesthroughthephasesof
the transition. The index market capitalization of securities will be determined as Index Inclusion
Factor*DIF*SecurityFullMarketCapitalization.
PhaseI PhaseII
ProformaIndex StandardProforma ProformaIndex StandardProforma

CurrentIndex InclusionFlag InclusionFactor InclusionFlag InclusionFactor
InclusionFlag (August31,2009) (August31,2009) (November30,2009) (November30,2009)
ExistingConstituents
CompanyA 1 1 1 1 1
CompanyB 1 0 0.5 0 0
CompanyC 1 0 0.5 1 1
CompanyD 1 1 1 0 0
NewConstituents
CompanyE 0 1 0.5 1 1
CompanyF 0 1 0.5 0 0
CompanyG 0 0 0 1 1

Forexample,saycompaniesA,B,CandDarecurrentconstituentsoftheMSCI
China A Index. Company A continues as a constituent of the MSCI China A
IndexundertheMSCIGIMImethodology.ItwillhaveanIndexInclusionFactor
of1throughoutthetransition.WhereasCompanyBisnoteligibleforinclusion
intheMSCIChinaAIndexundertheGIMImethodology.Itwillbemarkedfor
removalfromtheMSCIChinaAIndexandanIndexInclusionFactorof0.5will
be applied to it during the first phase of transition. In the second phase the
Index Inclusion Factor will be reduced to 0 indicating a complete removal of
the company from the MSCI China A Index. In another case, company C is
identified for removal from the MSCI China A Index under the MSCI GIMI

IndexMethodology
May2013
methodologybutwhenitisevaluatedatphasetwoanditbecomeseligiblefor
inclusion. In this case, the Index Inclusion Factor of company C for the first
phase and second phase will be 0.5 and 1 respectively. Next, company D
qualifies to remain in the MSCI China A Index in the first phase but fails to
qualify for inclusion in the second phase, the Index Inclusion Factor will be 1
forthefirstphaseand0forthesecondphase.

Moving on to company E, F and G which are not current constituents of the
MSCI China A Index. Company E qualifies for inclusion to the MSCI China A
Indexthroughoutthetransition.ItwillhaveanIndexInclusionFactorof0.5in
thefirst phaseand1inthesecond phase.Next,companyF isidentifiedas a
newadditioninthefirstphase,butfailstoqualifytoremainintheindexinthe
second phase. Its Index Inclusion Factor of 0.5 in the first phase will be
changed to 0 in the second phase. Lastly, company G is not eligible for
inclusioninthefirstphasebutsubsequentlybecomeseligibleforinclusionin
theinthesecondphase,itsIndexInclusionFactorwillbe0forthefirstphase
and1insecondphase.

TreatmentofSuspensions:

ExistingMSCIChinaAInvestableMarketIndexconstituentsthataresuspendedfromtradingformore
than120businessdayswillbedeletedduringregularindexreviewsatthelowestprices(unitorfraction
ofthecurrency)atwhichasecuritycantradeonagivenexchange.


IndexMethodology
May2013
AppendixXIII:MSCIDRIndices

Constructing the MSCI DR Indices

The MSCI DR Indices are constructed by substituting the constituents of the corresponding MSCI
Standard Indices (herein, Parent Indices) with liquid Depositary Receipts (DR) for each constituent.
OnlylevelIIandlevelIIIAmericanDepositaryReceipts(ADR)listedontheNewYorkStockExchangeor
theNASDAQ,GlobalDepositaryReceipts(GDR)aswellasADRslistedontheLondonStockExchangeare
eligibleforinclusionintheMSCIDRIndices.DRsaredeemedliquidiftheirATVRis15%orabove.Ifmore
thanoneDRexistsforaconstituent,themostliquidlistingwillbeincludedintheMSCIDRIndex.

ConstituentsoftheParentIndiceswithoutDRlistingsareexcludedfromtheMSCIDRIndices.

Maintaining the MSCI DR Indices

NumberofShares(NOS)andForeignInclusionFactors(FIF)usedforDRsintheMSCIDRIndices

The NOS of the DRs in the MSCI DR Indices is based on the maximum DRs that could be issued by
dividingthenumberofsharesoftheParentIndexbytheDRratio(ratiobetweenthecommonshares
andtheDRs).ThepurposeofthisistoallowtheDRtoreflectaccuratelythefullmarketcapitalizationof
thecompanyintheDRIndices.
The FIF is the same as the Parent Index constituents FIF in order to reflect accurately the freefloat
adjustedmarketcapitalizationofthesecurity.

QuarterlyListingReviews

ThereisaQuarterlyListingReview,whichcoincideswiththeregularQuarterlyandSemiAnnualIndex
Reviews of the Parent Indices. At each Quarterly Listing Review, all listings for all constituents of the
ParentIndexareexamined.IfanewliquidDRforacurrentconstituentoftheParentIndex,whichisnot
aconstituentoftheMSCIDRIndex,isidentified,itisaddedtotheMSCIDRIndexaspartoftheReview.
TheDRmustbelistedandtradingforatleastthreemonthsbeforebeingaddedtotheMSCIDRIndex.

ConstituentsoftheMSCIDRIndiceswithanATVRbelow10%willbeexcludedfromtheMSCIDRIndices
aspartoftheQuarterlyListingReview.

All constituents deleted from the Parent Indices resulting from either Quarterly Index Reviews or
SemiAnnualIndexReviewswillbesimultaneouslydeletedfromtheMSCIDRIndices,providedtheasset

IndexMethodology
May2013
wasincludedintheMSCIDRIndices.AdditionstotheParentIndiceswillbeaddedtothecorresponding
MSCIDRIndicesonlyiftheymeettheliquidityandseasoningrequirements.

QuarterlyandSemiAnnualIndexReviewofChangesinNOSandinFIF

UpdatesinNOSandFIFtotheParentIndiceswillbeappliedsimultaneouslytothecorrespondingDRs
adjustedbytherespectiveDRratio.

OngoingEventRelatedChanges

The implementation in the MSCI DR Indices of changes in security level information, such as FIF and
NOS,asaresultofcorporateeventsgenerallymirrortheimplementationoftheseeventsintheParent
Indices.Thisrulewillnormallyapplytodeletions,changesinthenumberofsharesandFIFs,ofsecurities
duetomergersandacquisitions,conversionofshares,orshareplacementsandofferings.

Forrightsissuesopenedonlytolocalshareholders,MSCIwillnotapplyaPriceAdjustmentFactor(PAF)
tothemarketpriceoftheDR,butwillincreasethenumberofsharesoftheDRsimultaneouslywiththe
changefortheParentIndices,inordertokeeptheDRratioconstant.

Corporate actions such as splits, reverse splits, consolidations, stock dividends, and spin offs which
affecttheParentIndicesanditsDRsmayoccureitheratthesametimeoratdifferenttimesdueto,for
example, differences in operational procedures in the stock exchanges of the DR and the underlying
security.Therefore,MSCIwilltakethe exdate providedbythecorrespondingStockExchangeofboth
theparentandtheDR.

In the case of a stock split involving a change in the DR ratio, it might result only in a change in the
numberofsharesandaPAFfortheparentandnotfortheDRorviceversa.

Despitethefullreplicationoftheeventmaintenance,theimpactofagiveneventontheParentIndex
and on the DR Index may be different as a result of potential price discrepancies between respective
listingsatthetimeoftheimplementationoftheevent.

AdditionsandDeletionsduetoCorporateEvents

For a constituent added to a Parent Index following a corporate event, the most liquid DR for such
constituentwillbeeligibleforinclusionintherespectiveMSCIDRIndexatthenextregularlyscheduled
Quarterly Index Review or SemiAnnual Index Review, provided it meets all index inclusion
requirements.

IndexMethodology
May2013
A constituent deleted from a Parent Index following a corporate event will be simultaneously deleted
fromthecorrespondingMSCIDRIndex,providedthecorrespondingDRlistingwasincludedintheMSCI
DRIndex.

IPOs

DRsofIPOswhicharesignificantinsizeandincludedearlyintheMSCIGlobalStandardIndicesaccording
toSubsection3.3.4.1,willbesimultaneouslyincludedintheMSCIDRIndices.

Dividend Reinvestment for DRs Indices

AspertheMSCIIndexCalculationMethodology,cashdividendspaidtoDRconstituentsarereinvested
intheMSCIDRindicesontheexdateoftheDRdividend.

Withholdingtax

MSCIusescompaniescountryofincorporationoftheParentIndicestodeterminetherelevantdividend
withholdingtaxrateappliedtotheDRincalculatingthegrossandnetdividends.Consequently,forDR
thewithholdingtaxrateswillbethesameoneusedfortheParentIndices.

DividendFeesPayablebyDRHolders

NormallyadividendfeeisappliedtodividendspaidbyDRs.Thisfeeisanadministrativecostassociated
with processing the dividend and it is a standard practice for depositary banks to charge it to the DR
shareholders.MSCIdoesnottakeintoaccountthisdividendfeeamountinthecalculationofgrossand
netdividends.


IndexMethodology
May2013
ThefollowingsectionshavebeenmodifiedsinceNovember2012:
3.2.3. QuarterlyIndexReviewofChangesinFIFs
Updateofthefootnoteonpage46
3.3.3.3 EarlyInclusionofNonIndexConstituents
Updateofthelastparagraphonpage52
3.3.4.1 IPOsandOtherEarlyInclusions
Updateonpages54and55.Thesameupdatewasappliedtopages38and46
3.3.5CorporateEventsAffectingtheIndexReview
Updateonpage55
AppendixIII:CountryClassificationofSecurities
Updateofthelastparagraphonpage80
UpdateonRussiaonpage80

ThefollowingsectionshavebeenmodifiedsinceFebruary2013:
2.2.5 MinimumLengthofTradingRequirements
Updatelastparagraphofsection
3.2.3 QuarterlyindexReviewofChangesinFIFs
Newparagraphendofsection
3.2.4 QuarterlyindexReviewofChangeschangesintheNumberofShares(NOS)
Newparagraphendofsection
3.3.3.2ChangesinSizeorStyleSegmentClassificationasaResultofaLargeCorporateEvent
Updateonpage51
3.3.3.3EarlyInclusionofNonIndexConstituents
Updatesonpage52
3.3.4.1IPOsandOtherEarlyInclusions
Updatesonpage55
5.1.1 UpdatingMSCIFrontierMarketsIndexCoverage
Newsecondparagraph
5.1.2 StandaloneCountryIndices
Newsection
5.2.2 CategorizationofFrontierMarketsintoverylow,loworaverageliquiditymarkets
Updatesonpage68

IndexMethodology
May2013
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IndexMethodology

Section 2: Constructing the MSCI Global Investable

Equity Universe. The Equity Universe Minimum Size Requirement is

Size Size and Coverage

The full market capitalization of the company that provides an 85%

Standard Index Size and Coverage

Standard Index Small Cap Index

Cumulative Free-Float Adjusted Market Capitalization

Standard Index Small Cap Index

Cumulative Free-Float Adjusted Market Capitalization Coverage

Section 3: Maintaining the MSCI Global Investable

80% 85% 90%

Cumulative Free Float-Adjusted Market Coverage

foreignroom>= 15%<=foreign 7.5%<=foreign 3.75%<=foreign foreignroom

foreignroom>= 15%<=foreign 7.5%<=foreign 3.75%<=foreign foreignroom

B Size and Liquidity Requirements

C Market Accessibility Criteria

Investor qualification requirement

Ease of capital inflows / outflows

Efficiency of the operational framework

AMDOCS DOXUNEquity 2256908 US UnitedStates 3

CHECKPOINTSOFTWARE CHKPUWEquity 2181334 US Israel 4

CHINAYUCHAIINT'LN(USD CYDUNEquity 2186191 US China 4

DAIRYFARMINT'L(USD) DFISPEquity 6180274 SG HongKong 2

EURASIADRILLING EDCLLIEquity B289L09 GB Russia 2

GLOBALSOURCES GSOLUWEquity 2576521 US China 2

HONGKONGLAND(USD) HKLSPEquity 6434915 SG HongKong 2

JARDINEMATHESON(USD) JMSPEquity 6472119 SG HongKong 2

JARDINESTRATEGIC(USD) JSSPEquity 6472960 SG HongKong 2

L'OCCITANEINTERNATIONAL 973HKEquity B3PG229 HK France 2

MANDARINORIENTAL(USD) MANDSPEquity 6560713 SG HongKong 2

NATUZZIADR NTZUNEquity 2459075 US Italy 4

OILSEARCH OSHAUEquity 6657604 AU Australia 3

POLYMETALINTERNATIONAL POLYLNEquity B6T5S47 GB Russia 2

POLYUSGOLD POLGLIEquity B6S4JG4 GB Russia 2

PRADASPA 1913HKEquity B4PFFW4 HK Italy 4

SAMSONITEINTLSA 1910HKEquity B4Q1532 HK UnitedStates 2

SEASPANCORPN SSWUNEquity B0GNP30 US China 4

TOTALGABON ECFPEquity 4309781 FR France 3

VIMPELCOMADR VIPUSEquity B62HR76 US Russia 2

X5RETAILGROUPGDR(USD) FIVELIEquity B07T3T9 GB Russia 2

CNHGLOBALN.V. CNHUSEquity 2534778 US UnitedStates 1

SINACORP SINAUSEquity 2579230 US China 2

MONGOLIANMININGCORP 975HKEquity B4N0VG7 HK HongKong 3

YANDEXN.V. YNDXUSEquity B5BSZB3 US Russia 2

THAIBEVERAGEPCL THBEVSPEquity B15F664 SG Thailand 4

GENPACTLIMITED GUSEquity B23DBK6 US India 2

Appendix IV: Free Float Definition and Estimation

Numberofsharesclassifiedasnonfreefloat 4,300,000 8,760,000

Appendix V: Global Industry Classification Standard

501010 - Diversified 501020 Wireless

Cable & Wireless (GB) AT&T (US) Vodafone Group (GB)

GICS Level GICS Code Code Description

GICS Level GICS Code Code Description

GICS (Global Industry Classification Standard)

S ector Ind ustry G roup In dustry S ub -Ind ustry

20201050 Environmental & Facili ti es Services

40 Financials 4010 Banks 401010 Commercial Banks 40101010 Di versified Banks

40402020 Industri al REIT' s

Appendix VII: Policy Regarding Trading Suspensions

Appendix VIII: Updating the Global Minimum Size

capitalization of the 1700th company is chosen as the pro forma Global

Appendix IX: Minimum MarketRelative Liquidity