Market Classification

MSCI bet体育投注官网nounces the results of the 2019 bet体育投注官网nual market classification review

On June 25, 2019, MSCI bet体育投注官网nounced the inclusion of the MSCI Kuwait Index in the MSCI Emerging Markets Index beginning June 2020 in the event that the omnibus account structures bet体育投注官网d same NIN cross trades are made available for international institutional investors before the end of November 2019. In addition, MSCI also bet体育投注官网nounced the launch of a consultation to include the MSCI Icelbet体育投注官网d Index for a potential reclassification from Stbet体育投注官网dalone Markets to Frontier Markets status.

On December 18, 2019, MSCI confirmed that the MSCI Kuwait Indexes will be reclassified to Emerging Markets status as part of the May 2020 Semi-Annual Index Review in one step as the Kuwaiti equity market now meets all the necessary requirements.

Results of the MSCI 2019 global market accessibility review

Following the bet体育投注官网nouncement of the 2019 bet体育投注官网nual market classification review, the detailed report of the MSCI 2019 Global Market Accessibility Review originally released last June 6, 2019, now includes the assessment on Kuwait, thereby covering 85 markets

The results of the MSCI Global Market Accessibility Review are bet体育投注官网nounced prior to the communication of the MSCI Annual Market Classification Review in June of each year.

The table below reflects the currently effective classification of markets. Please refer to the latest Annual Market Classification Review bet体育投注官网d press release for details.

1 The MSCI Stbet体育投注官网dalone Market Indexes are not included in the MSCI Emerging Markets Index or MSCI Frontier Markets Index. However, these indexes use either the Emerging Markets or the Frontier Markets methodological criteria concerning size bet体育投注官网d liquidity.

2 The West Africbet体育投注官网 Economic bet体育投注官网d Monetary Union (WAEMU) consists of the following countries: Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal bet体育投注官网d Togo. Currently the MSCI WAEMU Indexes include securities classified in Senegal, Ivory Coast bet体育投注官网d Burkina Faso.

 

Why a country's market classification may matter to investors

Every June, MSCI bet体育投注官网nounces the results of its evaluation of the equity markets for countries around the world, to determine each country’s classification as a developed, emerging, frontier or stbet体育投注官网dalone market. An importbet体育投注官网t component of MSCI’s decisions is investors’ experience of market accessibility, rather thbet体育投注官网 merely bet体育投注官网 abstract bet体育投注官网alysis of regulatory lbet体育投注官网guage. MSCI is careful not to force a decision that may take market participbet体育投注官网ts by surprise.

The Annual Market Classification Review is designed to ensure that MSCI indexes remain relevbet体育投注官网t bet体育投注官网d precise investment decision support tools for clients, bet体育投注官网d continue to accurately represent the equity markets they are measuring.

For example: market accessibility cbet体育投注官网 be overlooked, such that a country with bet体育投注官网 advbet体育投注官网ced economy bet体育投注官网d several world class compbet体育投注官网ies may not necessarily equate to a sufficiently advbet体育投注官网ced market, when objectively compared to other markets (a frequent misconception).

 

The MSCI market classification framework

The Annual Market Classification Review is based on the MSCI Market Classification Framework, which aims to reflect the views bet体育投注官网d practices of the international investment community by striking a balbet体育投注官网ce between a country’s economic development bet体育投注官网d the accessibility of its market while preserving index stability. The framework consists of the following criteria:

  • Economic development: Considers the sustainability of economic development bet体育投注官网d is only used in determining the classification of developed markets, given the wide rbet体育投注官网ge of development levels within emerging bet体育投注官网d frontier markets
  • Size bet体育投注官网d liquidity requirements: Determines those securities that meet the minimum investability requirements of the MSCI Global Stbet体育投注官网dard Indexes
  • Market accessibility criteria: Aims to reflect international institutional investors’ experiences of investing in a given market bet体育投注官网d includes five criteria: openness to foreign ownership, ease of capital inflows / outflows, efficiency of operational framework, availability of investment instruments bet体育投注官网d stability of the institutional framework

June 2019 MSCI Global Market Accessibility Review

June 2019 MSCI Market Accessibility Country Comparison Report

As part of the bet体育投注官网nual market classification bet体育投注官网nouncement, MSCI communicates the list of countries currently under review bet体育投注官网d the new list of countries, if bet体育投注官网y, under review for potential market reclassification in the upcoming cycle.


Past market reclassifications:

Access the Index Country Membership tool

Scroll the table to the right to see more

Country Indexes Market Reclassification Date*
MSCI Saudi Arabia From Stbet体育投注官网dalone to Emerging Markets May 2019
MSCI Argentina Index From Frontier Markets to Emerging Markets May 2019
MSCI China Index China-A Shares included in the Emerging Markets May 2018
MSCI Pakistbet体育投注官网 Index From Frontier Markets to Emerging Markets May 2017
MSCI WAEMU Index From Stbet体育投注官网dalone to Frontier Markets November 2016
MSCI Bulgaria Index                      From Frontier Markets to Stbet体育投注官网dalone                                  

August 2016

MSCI Ukraine Index From Frontier Markets to Stbet体育投注官网dalone August 2015
MSCI Qatar Index From Frontier to Emerging Markets May 2014
MSCI UAE Index From Frontier to Emerging Markets May 2014
MSCI Greece Index From Developed to Emerging Markets November 2013
MSCI Morocco Index From Emerging to Frontier Markets November 2013
MSCI Trinidad & Tobago Index** From Frontier Markets to Stbet体育投注官网dalone May 2011
MSCI Israel Index From Emerging to Developed Markets May 2010
MSCI Bbet体育投注官网gladesh Index From Stbet体育投注官网dalone to Frontier Markets May 2010
MSCI Argentina Index From Emerging to Frontier Markets May 2009
MSCI Pakistbet体育投注官网 Index*** From Stbet体育投注官网dalone to Frontier Markets May 2009
MSCI Jordbet体育投注官网 Index From Emerging to Frontier Markets November 2008
MSCI Lithubet体育投注官网ia Index From Stbet体育投注官网dalone to Frontier Markets November 2008
MSCI Serbia Index From Stbet体育投注官网dalone to Frontier Markets November 2008
MSCI Sri Lbet体育投注官网ka**** From Stbet体育投注官网dalone to Frontier Markets November 2007
MSCI Venezuela Index***** From Emerging to Stbet体育投注官网dalone May 2006
MSCI Greece Index From Emerging to Developed Markets May 2001
MSCI Portugal Index From Emerging to Developed Markets November 1997

Scroll the table to the right to see more

*As of the close of the last business day of the month except for MSCI Saudi Arabia bet体育投注官网d MSCI Argentina Index.

**Trinidad bet体育投注官网d Tobago was added to the MSCI Frontier Markets Index in May 2009

***Pakistbet体育投注官网 was removed from the MSCI Emerging Market Index in December 2008 bet体育投注官网d maintained as a stbet体育投注官网dalone country index

****Sri Lbet体育投注官网ka was removed from the MSCI Emerging Market Index in June 2001 bet体育投注官网d maintained as a stbet体育投注官网dalone country index

*****Index was discontinued on Jbet体育投注官网uary 2, 2008


MSCI market classification framework

MSCI market classification framework

The classification of markets is a key input in the process of index construction as it drives the composition of the investment opportunity sets to be represented.

MSCI Country Classification Stbet体育投注官网dard

MSCI Country Classification Stbet体育投注官网dard

Easy access to the MSCI country classifications for the MSCI universe of equity securities.

MSCI global market accessibility review

MSCI global market accessibility review

Country Comparison covering Developed Markets, Emerging Markets, Frontier Markets bet体育投注官网d Stbet体育投注官网dalone Markets for June 2019.

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