MSCI is launching a set of five indices that track developed-market companies which get a high proportion of their revenues from emerging markets. The indices include firms such as Nestlé, a Swiss-domiciled company that gets just 2.15% of its revenues from Switzerland and 35% from emerging markets.
The set is the first of a series of indices that aim to track performance of companies with significant exposure to specific geographical areas, regardless of where the companies are based.
Baer Pettit, managing director and head of the MSCI Index Business, said the indices will allow 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,” he added.
The MSCI World with EM Exposure Index will focus on the top 300 companies from the MSCI World index with the highest emerging market exposure.
MSCI is also launching indices to track companies based in the US, Europe, the world excluding Israel, and Europe, Australia and the Far East.
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