Potential MSCI Formula Shift Puts Indonesia in Focus

Morgan Stanley Capital International (MSCI) is currently holding a consultation regarding proposed changes to its estimated free float calculations for specific markets, including Indonesia.

MSCI publishes benchmark indexes covering various markets and company sizes such as Global ACWI, Emerging Markets, Frontier Markets, and Small Cap, which are widely tracked by institutional investors globally.

In fact, many mutual funds and ETFs (exchange traded funds) use MSCI indexes as benchmarks to measure performances, with reportedly over $16.5 trillion in total assets tied to the indexes.