MSCI launches Economic Exposure Indices

A family of indices reflecting the performance of companies with significant exposure to specific regions or countries, regardless of their domicile, has been launched by MSCI.

MSCI’s Economic Exposure Indices estimate the economic exposure of the tracked firms using the geographic distribution of revenues, despite disparities in the reporting of their sales across geographic segments.

Baer Pettit, managing director and head of the MSCI Index Business said: “Globalization and the rapid integration of markets have challenged us to explore alternative approaches to categorizing the global equity universe. Economic exposure brings a new dimension to the construction of global equity indices.”

The first five indices in the family have been launched today. These are the MSCI Indices with Emerging Markets (EM) Exposure, which constitute a fixed number of developed markets companies with the highest proportion of revenues derived from emerging markets countries.

Petit said: “The MSCI Indices with EM Exposure complement our MSCI Emerging Markets Indices, enabling investors to explore the performance of emerging markets through developed markets equities. Institutional investors may also consider these indices as new benchmarks for capturing the sizeable business activity in emerging markets that is conducted by developed markets companies.”


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