MSCI IncMSCI
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MSCI announces a temporary single-stock cap for its US Value Index, which is a regulatory/rule change affecting its own index methodology.
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MSCI IncIndex provider MSCI announced it will temporarily cap the weight of any single issuer in the MSCI USA Enhanced Value Index at 25% to address potential concentration risk. This exceptional measure will be reviewed monthly and takes effect on September 1. Under the new rule, if the combined weight of a single issuer's securities exceeds 25% on any day, MSCI will reduce that issuer's weight to 20% and redistribute the excess proportionally among the remaining index constituents. MSCI said it is scrutinizing concentration levels across the Enhanced Value Index suite and will soon seek public feedback on proposed methodology enhancements to tackle this issue.
MSCI IncMSCI announces a temporary single-stock cap for its US Value Index, which is a regulatory/rule change affecting its own index methodology.