Index calculator MSCI announced on the 2nd that it will exclude Russian stocks from the emerging market index. As sanctions on Russia’s invasion of Ukraine spread, MSCI will separate Russian stocks from much of the investment fund industry.
MSCI said in a statement on the 2nd that many international institutional investors and exchanges are currently unable to invest in the Russian stock market and that Russian securities should be excluded from the MSCI Emerging Markets Index. He revealed that he received feedback.
Measures to reclassify Russian stocks to the status of a stand-alone market with restricted capital movements and low liquidity will be implemented in one step at the end of trading on March 9 for all MSCI indexes.
Following MSCI, FTSE Russell, a peer in the industry, also announced that it will exclude Russian securities from the stock index.
Russia has introduced capital restrictions and banned foreigners from selling securities domestically, effectively closing the exit for investors.
According to one estimate, if stock trading can be resumed, the change in MSCI could lead to the withdrawal of up to $ 32 billion in active and passive funds. .. However, it is unclear who will be the counterparty to such transactions in the context of Russia’s sanctions.
Original title:
MSCI Removes ‘Uninvestable’ Russia From Emerging-Market Indexes(excerpt)