MSCI Index Calculation Methodology

Transcription

1 Index Mehodology MSCI Index Calculaion Mehodology Index Calculaion Mehodology for he MSCI Equiy Indices

2 Index Mehodology MSCI Index Calculaion Mehodology Conens Conens... 2 Inroducion... 5 MSCI Equiy Indices... 6 Secion 1: MSCI Price Index Mehodology Price Index Level Index Marke Capializaion Example of calculaion Price Index Level (Alernaive Calculaion Formula Conribuion Mehod) Securiy Conribuion o he Index Today s Iniial Securiy Weigh Securiy Daily Price Reurn Example of calculaion using conribuion Nex Day Iniial Securiy Weigh Closing Index Marke Capializaion Today USD (Unadjused Marke Cap Today USD) Securiy Index Of Price In Local Noe on Index Calculaion In Local Currency Conversion of Indices Ino Anoher Currency Secion 2: MSCI Daily Toal Reurn (DTR) Index Mehodology Calculaion Mehodology Dividend Impac DTR Index Level from Securiy Informaion (Securiy DTR) Securiy Conribuion o he Index Securiy Daily Toal Reurn Securiy Daily Gross Reurn Securiy Daily Ne Reurn Iniial Securiy Weigh MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 2

3 Index Mehodology MSCI Index Calculaion Mehodology Currency Number Of Shares And Index Weighing Facor Reinvesmen Mehodology Timing of reinvesmen Reinvesmen Rules Dividends Resuling in a Reinvesmen Only Dividends Resuling in a Reinvesmen or in a Price Adjusmen Dividends Resuling in a Price Adjusmen Only Processing Rules Dividend Daa Corporae Acions Correcions Paymen Defaul Lae Dividends Counry Excepions Taxes On Dividends Tax Credi Wihholding Tax Counry Excepion Definiions Appendix I: Sunday Index Calculaion Appendix II: Annualized Traded Value Raio (ATVR) and Annual Traded Value Appendix III: Raes Appendix IV: Singapore & Malaysia A Hisory of Inclusion in he Emerging and Developed Markes Indices Appendix V: Singapore and Singapore Free Appendix VI: Wihholding Tax Raes Appendix VII: Closing Prices Policy Appendix VIII: Counry Composiion of MSCI Seleced Regional Indices Appendix IX: MSCI Real Time Indices MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 3

4 Index Mehodology MSCI Index Calculaion Mehodology Appendix X: Index Calculaion Mehodology Using Index Divisors MSCI Index Calculaion Mehodology Book Tracked Changes91 Clien Service Informaion is Available 24 Hours a Day Noice and Disclaimer Abou MSCI MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 4

5 Index Mehodology MSCI Index Calculaion Mehodology Inroducion This mehodology book describes MSCI s general Index calculaion mehodology for he MSCI Equiy Indices. MSCI provides wo ways of calculaing MSCI Equiy Indices, eiher by using he Price Adjusmen Facor (PAF) or he Index Divisors (Index Divisors mehodology available as an appendix). These policies and guidelines affec all securiies across he MSCI Equiy Indices and producs. Unless oherwise saed he policies and guidelines apply herefore o all securiies in he MSCI Equiy universe. Please noe ha he index consrucion mehodology and oher guiding principles for he MSCI Sandard Indices can be found in MSCI Global Invesable Marke Indices Mehodology Indices documen, available a MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 5

6 Index Mehodology MSCI Index Calculaion Mehodology MSCI Equiy Indices The MSCI Equiy Indices measure he performance of a se of equiy securiies over ime. The MSCI Equiy Indices are calculaed using he Laspeyres concep of a weighed arihmeic average ogeher wih he concep of chain-linking. MSCI counry and regional equiy Indices are calculaed in local currency as well as in USD, wih price, gross and ne reurns. Index levels are also available in several oher currencies such as AUD, BRL, CAD, CHF, CNY, EUR, GBP, HKD, INR, JPY, KRW, RUB and SGD. While he local currency series of regional indices canno be replicaed in he real world, i represens he heoreical performance of an index wihou any impac from foreign exchange flucuaions a coninuously hedged porfolio. Indices are calculaed 5 days a week, from Monday o Friday wih he excepion of a selecion of indices ha have a Sunday calculaion available. In cerain cases, where here are no qualifying securiies, i is possible for MSCI Indices o be empy following a securiy deleion or GICS change. If an index becomes empy i would be dynamically disconinued or rupured. I is hen possible for he index o be re-sared once a new securiy qualifies for he index, and his index level would be rebased o an appropriae level a ha ime. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 6

7 Index Mehodology MSCI Index Calculaion Mehodology Secion 1: MSCI Price Index Mehodology Price indices measure he marke prices performance for a selecion of securiies. They are calculaed daily and, for some of hem, on a real ime basis. Each index capures he marke capializaion weighed reurn of all consiuens included in he index Price Index Level As a general principle, oday s index level is obained by applying he change in he marke performance o he previous period index level. IndexAdjusedMarkeCapUSD PriceIndex LevelUSD PriceIndexLevelUSD 1 * IndexIniialMarkeCapUSD IndexAdjusedMarkeCapForLocal PriceIndex LevelLocal PriceIndexLevelLocal 1 * IndexIniialMarkeCapUSD Where: PriceIndex LevelUSD 1 is he Price Index level in USD a ime -1 IndexAdjus edmarkecapusd is he Adjused Marke Capializaion of he index in USD a ime IndexInii almarkecapusd is he Iniial Marke Capializaion of he index in USD a ime PriceIndex LevelLocal 1 is he Price Index level in local currency a ime -1 IndexAdjus edmarkecapforlocal is he Adjused Marke Capializaion of he index in USD convered using FX rae as of -1 and used for local currency index a ime Noe: IndexInii almarkeca pusd was previously called IndexUnadjusedMarkeCapPrevio ususd Index Marke Capializaion IndexAdjusedMarkeCapUSD si, EndOfDayNumberOfShares 1 * PricePerShare FXrae * InclusionFacor * PAF MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 7

8 Index Mehodology MSCI Index Calculaion Mehodology IndexAdjusedMarkeCapForLocal EndOfDayNumberOfShares ( 1 * PricePerShare FXrae * InclusionFacor * PAF ICI * ICI si, 1 1 ) IndexIniialMarkeCapUSD EndOfDayNumberOfShares 1 si, 1 * PricePerShare FXrae 1 * InclusionFacor Where: EndOfDayNu mberofshares 1 is he number of shares of securiy s a he end of day -1. PricePerSh are is he price per share of he securiy s a ime. PricePerSh are 1 is he price per share of securiy s a ime -1. InclusionF acor is he inclusion facor of he securiy s a ime. The inclusion facor can be one or he combinaion of he following facors: Foreign Inclusion Facor, Domesic Inclusion Facor, Growh Inclusion Facor, Value Inclusion Facor, Index Inclusion Facor (*). PAF is he Price Adjusmen Facor of he securiy s a ime. FXrae is he FX rae of he price currency of securiy s vs USD a ime. I is he value of 1 USD in foreign currency. FXrae 1 is he FX rae of he price currency of securiy s vs USD a ime -1. I is he value of 1 USD in foreign currency. ICI is he Inernal Currency Index of price currency a ime. The ICI is differen han 1 when a counry changes he inernal value of is currency (e.g. from Turkish Lira o New Turkish Lira ICI = 1,000,000). ICI 1 is he Inernal Currency Index of price currency a ime -1. (*) From June o May , o calculae he sandard or small cap index marke capializaion (excep for FM counries and China A), he securiy marke cap should be muliplied by he Sandard or Small Cap Index Inclusion Facor. From Sepember o November , o calculae he China A and relaed indices markes capializaion, he China A securiies marke cap should be muliplied by he Sandard Index Inclusion Facor. The Sandard Index Inclusion Facor is solely used for he compuaion of he MSCI Sandard Indices, and no for he Large Cap, Mid Cap and Provisional Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 8

9 Index Mehodology MSCI Index Calculaion Mehodology The Small Cap Index Inclusion Facor is no used for he compuaion of he MSCI Emerging Markes and AC Small Cap Indices, MSCI Small Cap Value and Growh, MSCI Provisional Small Cap and MSCI Small Cap Secors Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology. Noe: The only difference in he formulas beween USD and local currency indices calculaion is ha he same exchange rae is used in he numeraor and denominaor for local currency, which means ha here is no impac of currency change in he performance. Time varian exchange raes are used for he USD calculaion. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 9

10 Index Mehodology MSCI Index Calculaion Mehodology Example of calculaion Example of index calculaion. Day 1 NumberOf Shares - 1 PricePer Share PricePer Share -1 Inclusion Facor PAF FXrae FXrae -1 IndexAdjused MarkeCapUSD (see 1.1.1) IndexIniialMar kecapusd (see 1.1.1) IndexAdjused MarkeCapFor Local (see 1.1.1) Securiy A ,445,000 11,627,517 11,521,812 Securiy B ,224,696 2,394,737 2,244,211 Securiy C ,216,899 2,223,179 2,208,067 Securiy D ,672,000 54,121,200 54,672,000 Toal Index 70,558,595 70,366,633 70,646,090-1 daily perf PriceIndexLevelUSD (see 1.1) % PriceIndexLevelLocal (see 1.1) % Day 2 Securiy C is ex Righ issue 1 : 1300 NumberOf Shares - 1 PricePer Share PricePer Share -1 Inclusion Facor PAF FXrae FXrae -1 IndexAdjused MarkeCapUSD (see 1.1.1) IndexIniialMar kecapusd (see 1.1.1) IndexAdjused MarkeCapFor Local (see 1.1.1) Securiy A ,920,530 11,445,000 12,000,000 Securiy B ,129,310 2,224,696 2,147,826 Securiy C ,236,145 2,216,899 2,227,200 Securiy D ,701,987 54,672,000 54,060,000 Toal Index 69,987,971 70,558,595 70,435,026-1 daily perf PriceIndexLevelUSD (see 1.1) % PriceIndexLevelLocal (see 1.1) % Day 3 Securiy C has an increase of number of shares follow ing he righ issue ex on Day 2 NumberOf Shares - 1 PricePer Share PricePer Share -1 Inclusion Facor PAF FXrae FXrae -1 IndexAdjused MarkeCapUSD (see 1.1.1) IndexIniialMar kecapusd (see 1.1.1) IndexAdjused MarkeCapFor Local (see 1.1.1) Securiy A ,375,000 11,920,530 12,293,046 Securiy B ,266,667 2,129,310 2,286,207 Securiy C ,320,289 4,053,012 4,318,554 Securiy D ,264,000 53,701,987 53,904,636 Toal Index 73,225,956 71,804,839 72,802,443-1 daily perf PriceIndexLevelUSD (see 1.1) % PriceIndexLevelLocal (see 1.1) % MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 10

11 Index Mehodology MSCI Index Calculaion Mehodology 1.2. Price Index Level (Alernaive Calculaion Formula Conribuion Mehod) Anoher way o calculae he index level would be o use he iniial weigh and price reurn of he individual securiies included in he index: PriceIndexLevelUSD PriceIndexLevelLocal PriceIndexLevelUSD -1 PriceIndexLevelLocal *(1 1 si, *(1 SecuriyPr iceconribuiontoind exusd ) si, SecuriyPr iceconribuiontoind exlocal ) Securiy Conribuion o he Index SecuriyPr iceconribuiontoindexusd IniialSec uriyweigh * SecuriyDailyPriceRe urnusd SecuriyPr iceconribuiontoindexlocal IniialSec uriyweigh * SecuriyDailyPriceRe urnlocal Where: SecuriyDa ilypricere urnusd is he price reurn in USD of securiy s a ime. SecuriyDa ilypricere urnlocal is he price reurn of securiy s a ime convered using FX rae as of -1 and used for local currency calculaion a ime Today s Iniial Securiy Weigh MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 11

12 Index Mehodology MSCI Index Calculaion Mehodology IniialSec uriyweigh si, EndOfDayNumberOfShares FXrae 1 1 EndOfDayNumberOfShares ( FXrae 1 * PricePerShare 1 1 * PricePerShare * InclusionFacor 1 * InclusionFacor ) * 100 si, SecuriyIniialFullM arkecapusd * InclusionFacor (SecuriyIniialFull MarkeCapUSD * InclusionFacor ) * 100 SecuriyIniialMarkeCapUSD IndexIniialMarkeCapUSD * 100 Where: EndOfDayNu mberofshares 1 PricePerSh are 1 is he number of shares of securiy s a he end of day -1. is he price per share of securiy s a ime -1. InclusionF acor is he inclusion facor of securiy s a ime. The inclusion facor can be one or he combinaion of he following facors: Foreign Inclusion Facor, Domesic Inclusion Facor, Growh Inclusion Facor, Value Inclusion Facor, Index Inclusion Facor (*). FXrae 1 is he FX rae of he price currency of securiy s vs USD a ime -1. I is he value of 1 USD in foreign currency. (*) From June o May , o calculae he sandard or small cap index marke capializaion (excep for FM Counries and China A), he securiy marke cap should be muliplied by he Sandard or Small Cap Index Inclusion Facor. From Sepember o November , o calculae he China A and relaed indices markes capializaion, he China A securiies marke cap should be muliplied by he Sandard Index Inclusion Facor. The Sandard Index Inclusion Facor is solely used for he compuaion of he MSCI Sandard Indices, and no for he Large Cap, Mid Cap and Provisional Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology. The Small Cap Index Inclusion Facor is no used for he compuaion of he MSCI Emerging Markes and AC Small Cap Indices, MSCI Small Cap Value and Growh, MSCI Provisional Small Cap and MSCI Small Cap Secors Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 12

13 Index Mehodology MSCI Index Calculaion Mehodology Noe: The SecuriyIn iialfullm arkecapinsecuriypr icecurrency is also available in he securiy files and corresponds o he SecuriyIn iialfullm arkecapusd muliplied by he FXrae 1 The EndOfDayNu mberofshares 1 used o calculae oday s iniial weigh, available in he MSCI producs daed day, is shown as Number of Shares (Today Index) Securiy Daily Price Reurn SecuriyDa ilypricere urnusd SecuriyAd jusedmarkecapusd SecuriyIniialMarkeCapUSD 1 *100 SecuriyDa ilypricere urnlocal SecuriyAd jusedmarkecapforlocal SecuriyIniialMarkeCapUSD 1 *100 SecuriyAd jusedmarkecapforlocal EndOfDayNumberOfShares 1 * PricePerShare * InclusionFacor * PAF FXrae 1 ICI * ICI 1 SecuriyAd jusedmarkecapusd EndOfDayNumberOfShares 1 * PricePerShare FXrae * InclusionFacor * PAF SecuriyIniialMarkeCapUSD EndOfDayNumberOfShares 1 * PricePerShare FXrae 1 1 * InclusionFacor Where: SecuriyAd jusedmarkecapforlocal is he Adjused Marke Capializaion of securiy s in USD convered using FX rae as of -1 SecuriyAd jusedmarkecapusd is he Adjused Marke Capializaion of securiy s in USD convered using FX rae as of SecuriyIn iialmarkecapusd is he Iniial Marke Capializaion of securiy s in USD a ime MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 13

14 Index Mehodology MSCI Index Calculaion Mehodology EndOfDayNu mberofshares 1 PricePerSh are is he price per share of securiy s a ime. PricePerSh are 1 is he number of shares of securiy s a he end of day -1. is he price per share of securiy s a ime -1. InclusionF acor is he inclusion facor of securiy s a ime. The inclusion facor can be one or he combinaion of he following facors: Foreign Inclusion Facor, Domesic Inclusion Facor, Growh Inclusion Facor, Value Inclusion Facor, Index Inclusion Facor (*). PAF is he Price Adjusmen Facor of securiy s a ime. FXrae is he FX rae of he price currency of securiy s vs USD a ime. I is he value of 1 USD in foreign currency. FXrae 1 is he FX rae of he price currency of securiy s vs USD a ime -1. I is he value of 1 USD in foreign currency. ICI is he Inernal Currency Index of price currency a ime. The ICI is differen han 1 when a counry changes he inernal value of is currency (e.g. from Turkish Lira o New Turkish Lira ICI = 1,000,000). ICI 1 is he Inernal Currency Index of price currency a ime -1. (*) From June o May , o calculae he sandard or small cap index marke capializaion (excep for FM Counries and China A), he securiy marke cap should be muliplied by he Sandard or Small Cap Index Inclusion Facor. From Sepember o November , o calculae he China A and relaed indices markes capializaion, he China A securiies marke cap should be muliplied by he Sandard Index Inclusion Facor. The Sandard Index Inclusion Facor is solely used for he compuaion of he MSCI Sandard Indices, and no for he Large Cap, Mid Cap and Provisional Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology. The Small Cap Index Inclusion Facor is no used for he compuaion of he MSCI Emerging Markes and AC Small Cap Indices, MSCI Small Cap Value and Growh, MSCI Provisional Small Cap and MSCI Small Cap Secors Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 14

15 Index Mehodology MSCI Index Calculaion Mehodology Example of calculaion using conribuion Day 1 NumberOf Shares - 1 PricePer Share PricePer Share -1 Inclusion Facor PAF FXrae FXrae -1 IniialSecuri yweigh (see 1.2.2) SecuriyDaily Price_Reurn USD (see 1.2.3) SecuriyPrice conribuionto IndexUSD (see 1.2.1) SecuriyDaily Price_Reurn Local (see 1.2.3) SecuriyPrice conribuionto IndexLocal (see 1.2.1) Securiy A % -1.57% -0.26% -0.91% -0.15% Securiy B % -7.10% -0.24% -6.29% -0.21% Securiy C % -0.28% -0.01% -0.68% -0.02% Securiy D % 1.02% 0.78% 1.02% 0.78% Toal Index % 0.27% 0.40% -1 daily perf PriceIndexLevelUSD (see 1.2) % PriceIndexLevelLocal (see 1.2) % Day 2 Securiy C is ex Righ issue 1 : 1300 NumberOf Shares - 1 PricePer Share PricePer Share -1 Inclusion Facor PAF FXrae FXrae -1 IniialSecuri yweigh (see 1.2.2) SecuriyDaily Price_Reurn USD (see 1.2.3) SecuriyPrice conribuionto IndexUSD (see 1.2.1) SecuriyDaily Price_Reurn Local (see 1.2.3) SecuriyPrice conribuionto IndexLocal (see 1.2.1) Securiy A % 4.15% 0.67% 4.85% 0.79% Securiy B % -4.29% -0.14% -3.46% -0.11% Securiy C % 0.87% 0.03% 0.46% 0.01% Securiy D % -1.77% -1.37% -1.12% -0.87% Toal Index % -0.81% -0.18% -1 daily perf PriceIndexLevelUSD (see 1.2) % PriceIndexLevelLocal (see 1.2) % Day 3 Securiy C has an increase of number of shares follow ing he righ issue ex on Day 2 NumberOf Shares - 1 PricePer Share PricePer Share -1 Inclusion Facor PAF FXrae FXrae -1 IniialSecuri yweigh (see 1.2.2) SecuriyDaily Price_Reurn USD (see 1.2.3) SecuriyPrice conribuionto IndexUSD (see 1.2.1) SecuriyDaily Price_Reurn Local (see 1.2.3) SecuriyPrice conribuionto IndexLocal (see 1.2.1) Securiy A % 3.81% 0.63% 3.13% 0.52% Securiy B % 6.45% 0.19% 7.37% 0.22% Securiy C % 6.59% 0.37% 6.55% 0.37% Securiy D % 1.05% 0.78% 0.38% 0.28% Toal Index % 1.98% 1.39% -1 daily perf PriceIndexLevelUSD (see 1.2) % PriceIndexLevelLocal (see 1.2) % MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 15

16 Index Mehodology MSCI Index Calculaion Mehodology 1.3. Nex Day Iniial Securiy Weigh IniialSec uriyweigh 1 si, 1 EndOfDayNumberOfShares * PricePerShare * InclusionFacor FXrae EndOfDayNumberOfShares * PricePerShare ( * InclusionFacor FXrae 1 1 * 100 ) si, 1 SecuriyIniialFullM arkecapusd 1 (SecuriyIniialFull MarkeCapUSD * InclusionFacor 1 1 * InclusionFacor 1 * 100 ) SecuriyIniialMarkeCapUSD IndexIniialMarkeCapUSD 1 1 * 100 Where: EndOfDayNu mberofshares is he number of shares of securiy s a he end of day. PricePerSh are is he price per share of he securiy s a ime. InclusionF acor is he inclusion facor of he securiy s a ime +1. The inclusion facor can be one or he combinaion of he following facors: Foreign Inclusion Facor, Domesic Inclusion Facor, Growh Inclusion Facor, Value Inclusion Facor, Index Inclusion Facor (*). 1 FXrae is he FX rae of he price currency of securiy s vs USD a ime. I is he value of 1 USD in foreign currency. (*) From June o May , o calculae he sandard or small cap index marke capializaion (excep for FM Counries and China A), he securiy marke cap should be muliplied by he Sandard or Small Cap Index Inclusion Facor. From Sepember o November , o calculae he China A and relaed indices markes capializaion, he China A securiies marke cap should be muliplied by he Sandard Index Inclusion Facor. The Sandard Index Inclusion Facor is solely used for he compuaion of he MSCI Sandard Indices, and no for he Large Cap, Mid Cap and Provisional Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology. The Small Cap Index Inclusion Facor is no used for he compuaion of he MSCI Emerging Markes and AC Small Cap Indices, MSCI Small Cap Value and Growh, MSCI Provisional Small Cap and MSCI Small MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 16

17 Index Mehodology MSCI Index Calculaion Mehodology Cap Secors Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology. The lis of index consiuens as of ime +1 is considered in he calculaion. Noes: The SecuriyIn iialfullm arkecapinsecuriypr icecurrency 1 is also available in he securiy files and corresponds o he SecuriyIn iialfullm arkecapusd 1 muliplied by he FXrae The EndOfDayNu mberofshares used o calculae nex day s iniial weigh, available in he MSCI producs daed day, is shown as Number of Shares (Nex Day Index) Closing Index Marke Capializaion Today USD (Unadjused Marke Cap Today USD) The value of he index marke capializaion as of he close of a day is calculaed as follows: IndexClosingMarkeCapUSD si, ClosingNumberOfShares * PricePerShare * InclusionFacor FXrae Where ClosingNum berofshares is he number of shares of securiy s a he close of. PricePerSh are is he securiy price per share of securiy s a ime. InclusionF acor is he inclusion facor of he securiy s a ime. The inclusion facor can be one or he combinaion of he following facors: Foreign Inclusion Facor, Domesic Inclusion Facor, Growh Inclusion Facor, Value Inclusion Facor, Index Inclusion Facor (*). FXrae is he FX rae of he price currency of securiy s vs USD a ime. I is he value of 1 USD in foreign currency. (*) From June o May , o calculae he sandard or small cap index marke capializaion (excep for FM Counries and China A), he securiy marke cap should be muliplied by he Sandard or Small Cap Index Inclusion Facor. From Sepember o November , o calculae he China A and relaed indices markes capializaion, he China A securiies marke cap should be muliplied by he Sandard Index Inclusion Facor. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 17

18 Index Mehodology MSCI Index Calculaion Mehodology The Sandard Index Inclusion Facor is solely used for he compuaion of he MSCI Sandard Indices, and no for he Large Cap, Mid Cap and Provisional Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology. The Small Cap Index Inclusion Facor is no used for he compuaion of he MSCI Emerging Markes and AC Small Cap Indices, MSCI Small Cap Value and Growh, MSCI Provisional Small Cap and MSCI Small Cap Secors Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology. The lis of index consiuens as of ime should be considered in he calculaion. Effecively his figure represens he shares a he close on, and does no include any of he effecs of corporae acions due a he open of he marke he nex day. The closing marke capializaion uses oday s price,, as i represens he marke capializaion a he close of he calculaion day Securiy Index Of Price In Local The securiy Index of Price is disribued in MSCI daily and monhly securiy producs [I represens he price reurn from period o period by uilizing he concep of an index of performance wih an arbirary base value. The index of price is fully adjused for capial changes and is expressed in local currency. SecuriyAd jusedmarkecapforlocal SecuriyPr iceindexlevel SecuriyPr iceindexlevel 1 * SecuriyIniialMarkeCapUSD SecuriyAd jusedmarkecapforlocal EndOfDayNumberOfShares 1 * PricePerShare * InclusionFacor * PAF FXrae 1 ICI * ICI 1 SecuriyIniialMarkeCapUSD EndOfDayNumberOfShares Where: 1 * PricePerShare FXrae 1 1 * InclusionFacor SecuriyPr iceindexlevel 1 is Securiy Price Index level a ime -1 SecuriyAd jusedmarkecapforlocal is he Adjused Marke Capializaion of securiy s in USD convered using FX rae as of -1 MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 18

19 Index Mehodology MSCI Index Calculaion Mehodology SecuriyIniialMarkeCapUSD is he Iniial Marke Capializaion of securiy s in USD a ime EndOfDayNu mberofshares is he number of shares of securiy s a he end of day PricePerShare 1 is he price per share of securiy s a ime. PricePerSh are is he price per share of securiy s a ime -1. InclusionFacor is he inclusion facor of securiy s a ime. The inclusion facor can be one or he combinaion of he following facors: Foreign Inclusion Facor, Domesic Inclusion Facor Growh Inclusion Facor, Value Inclusion Facor, Index Inclusion Facor (*). PAF is he Price Adjusmen Facor of securiy s a ime. FXrae 1 is he FX rae of he price currency of securiy s vs USD a ime -1. I is he value of 1 USD in foreign currency. ICI is he Inernal Currency Index of price currency a ime. The ICI is differen han 1 when a counry changes he inernal value of is currency (e.g. from Turkish Lira o New Turkish Lira ICI = 1,000,000). ICI 1 is he Inernal Currency Index of price currency a ime -1. (*) From June o May , o calculae he sandard or small cap index marke capializaion (excep for FM Counries and China A), he securiy marke cap should be muliplied by he Sandard or Small Cap Index Inclusion Facor. From Sepember o November , o calculae he China A and relaed indices markes capializaion, he China A securiies marke cap should be muliplied by he Sandard Index Inclusion Facor. The Sandard Index Inclusion Facor is solely used for he compuaion of he MSCI Sandard Indices, and no for he Large Cap, Mid Cap and Provisional Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology. The Small Cap Index Inclusion Facor is no used for he compuaion of he MSCI Emerging Markes and AC Small Cap Indices, MSCI Small Cap Value and Growh, MSCI Provisional Small Cap and MSCI Small Cap Secors Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology Noe on Index Calculaion In Local Currency The MSCI Counry and Regional Indices are calculaed in local currency as well as in USD. The concep of a local currency calculaion excludes he impac of currency flucuaions. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 19

20 Index Mehodology MSCI Index Calculaion Mehodology Noe ha for a counry index, he local currency index will no be he same as an index calculaed wih he official currency of ha counry, if here is more han one currency of lising. All currencies of lising are considered in he index calculaion in local currency where curren prices and previous day prices -1 are convered ino USD using he same exchange rae (exchange rae -1 ) in he numeraor and denominaor. As a consequence, he FX facor drops ou of he equaion. The USD calculaion includes exchange raes a and -1. Therefore, he local currency calculaion only represens he price appreciaion or depreciaion of he securiies, whereas he USD calculaion also accouns for he performance of he currency (or currencies) relaive o he USD Conversion of Indices Ino Anoher Currency An index can be calculaed ino any currency by convering he index in USD ino he seleced currency using he formula below. If he base dae of he index is prior o he sar dae of he currency, he indices should be rebased and convered using he following formula: IndexLevelinCurrency 100* IndexLevelinUSD IndexLevelinUSD currency_ base_ dae FXrae * FXrae currency_ base_ dae Noe ha 100 in he formula is he base value. This base value can be differen han 100 (e.g depending on he indices). If he base dae of he index is equal or poserior o he sar dae of he currency, he indices should be convered only, using he following formula: IndexLevelinCurrency FXrae IndexLevelinUSD * FXrae index_ base_ dae Example: Calculaion of he The World Index in EUR as of Ocober 20, 1999: Noe ha he sar dae of EUR is 31-Dec-1998 The World Index in USD as of 31-Dec-98 = 1, The World Index as of 20- Oc- 99 = 1, MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 20

21 Index Mehodology MSCI Index Calculaion Mehodology FxRae EUR vs USD as of 31-Dec- 98 = FxRae EUR vs USD as of 20-Oc-99 = WorldIndexinEUR 10/20/99 WorldIndexinUSD 100* WorldIndexinUSD 10/20/99 31/12/98 * EURvsUSDRae EURvsUSDRae 10/20/99 12/31/ * * MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 21

22 Index Mehodology MSCI Index Calculaion Mehodology 2. Secion 2: MSCI Daily Toal Reurn (DTR) Index Mehodology Toal reurn indices measure he marke performance, including price performance and income from regular cash disribuions (cash dividend paymens or capial repaymens). Regular cash disribuions paid ou of share capial or capial conribuion reserves are reaed in he same manner as regular cash dividends paid ou of reained earnings. This income is reinvesed in he index and hus makes up par of he oal index performance. MSCI s Daily Toal Reurn (DTR) mehodology reinvess regular cash disribuions in indices on he exdae of such disribuions.. I applies o all index families. Regular cash disribuions are no considered in price indices, excep for special dividends and capial repaymens deemed exraordinary in cerain circumsances described below. The sandard Daily Toal Reurn (DTR) Indices are calculaed and disribued on a daily basis. The indices are available in USD and local currency (no currency impac), wih gross and ne oal reurn Calculaion Mehodology DTRIndexLevelUSD DTRIndexLevelUSD 1 (IndexAdjusedMarkeCapUSD IndexDividendImpacUSD * IndexIniialMarkeCapUSD ) DTRIndexLevelLocal DTRIndexLevelLocal 1 (IndexAdjusedMarkeCapForLocal IndexDividendImpacForLocal * IndexIniialMarkeCapUSD ) Where: DTRIndexLevelUSD 1 is he Daily Toal Reurn index level in USD a ime -1 IndexDivid endimpacusd is he gross or ne amoun of dividends in USD o be reinvesed in he index in USD a ime IndexDivid endimpacforlocal is he gross or ne amoun of dividend in USD convered using FX rae as of -1 o be reinvesed in he local currency index a ime DTRIndexLevelLocal 1 he Daily Toal Reurn index level in local currency a ime -1 MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 22

23 Index Mehodology MSCI Index Calculaion Mehodology Dividend Impac IndexDividendImpacUSD si, EndOfDayNumberOfShares exdae1 * DividendPerShare * InclusionFacor FXrae IndexDividendImpacForLocal EndOfDayNumberOfShares ( exdae1 si, 1 * DividendPerShare * InclusionFacor ICI * Fxrae ICI 1 ) Where: EndOfDayNu mberofshares ex is he number of shares of he securiy s a he end of he dividend ex-dae-1. dae1 DividendPe rshare is he gross or ne dividend per share expressed in he same currency uni as he price per share of he securiy s o be reinvesed a ime DTR Index Level from Securiy Informaion (Securiy DTR) Anoher way o calculae a DTR index would be o use he securiy iniial weigh and securiy oal reurn: DTRIndexLevelUSD DTRIndexLevelLocal DTRIndexLevelUSD 1 * (1 SecuriyToalReurnConribuionToIndexUSD ) si, DTRIndexLevelLocal 1 * (1 SecuriyToalReurnConribuionToIndexLocal ) si, Securiy Conribuion o he Index Calculaion Formulas: SecuriyTo alreurnconribuiontoindexusd IniialSec uriyweigh * SecuriyDailyToalRe urnusd SecuriyTo alreurnconribuiontoindexlocal IniialSec uriyweigh * SecuriyDailyToalRe urnlocal MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 23

24 Index Mehodology MSCI Index Calculaion Mehodology Where: SecuriyDa ilytoalre urnusd is he gross or ne reurn in USD of securiy s a ime. SecuriyDa ilytoalre urnlocal is he gross or ne reurn of securiy s a ime convered using he FX rae as of -1 and used for local currency calculaion a ime Securiy Daily Toal Reurn Securiy Daily Gross Reurn SecuriyDailyGrossReurnUSD (SecuriyAdjusedMarkeCapUSD SecuriyGrossDividendImpacUSD SecuriyIniialMarkeCapUSD ) 1 * 100 SecuriyDailyGrossReurnLocal (SecuriyAdjusedMarkeCapForLocal SecuriyGrossDividendImpacForLocal SecuriyIniialMarkeCapUSD ) 1 * 100 Where SecuriyGrossDividendImpacUSD EndOfDayNumberOfShares exdae1 * GrossDividendPerShare FXrae * InclusionFacor SecuriyGrossDividendImpacForLocal EndOfDayNumberOfShares exdae1 * GrossDividendPerShare * InclusionFacor FXrae 1 * ICI ICI 1 Where SecuriyAd jusedmarkecapforlocal is he Adjused Marke Capializaion of securiy s in USD convered using FX rae as of -1 SecuriyAd jusedmarkecapusd is he Adjused Marke Capializaion of securiy s in USD convered using FX rae as of MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 24

25 Index Mehodology MSCI Index Calculaion Mehodology SecuriyIn iialmarkecapusd is he Iniial Marke Capializaion of securiy s in USD a ime InclusionF acor is he inclusion facor of he securiy s a ime. The inclusion facor can be one or he combinaion of he following facors: Foreign Inclusion Facor, Domesic Inclusion Facor, Growh Inclusion Facor, Value Inclusion Facor, Index Inclusion Facor (*). FXrae is he FX rae of he price currency of securiy s vs USD a ime. I is he value of 1 USD in foreign currency. FXrae 1 is he FX rae of he price currency of securiy s vs USD a ime -1. I is he value of 1 USD in foreign currency. EndOfDayNu mberofshares ex is he number of shares of securiy s a he end of he dividend ex-dae-1. dae1 GrossDivid endpershare is he gross dividend per share expressed in he same currency uni as he price per share of he securiy s o be reinvesed a ime. ICI is he Inernal Currency Index of price currency a ime. The ICI is differen han 1 when a counry changes he inernal value of is currency (e.g. from Turkish Lira o New Turkish Lira ICI = 1,000,000). ICI 1 is he Inernal Currency Index of price currency a ime -1. (*) From June o May , o calculae he sandard or small cap index marke capializaion (excep for FM Counries and China A), he securiy marke cap should be muliplied by he Sandard or Small Cap Index Inclusion Facor. From Sepember o November , o calculae he China A and relaed indices markes capializaion, he China A securiies marke cap should be muliplied by he Sandard Index Inclusion Facor. The Sandard Index Inclusion Facor is solely used for he compuaion of he MSCI Sandard Indices, and no for he Large Cap, Mid Cap and Provisional Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology. The Small Cap Index Inclusion Facor is no used for he compuaion of he MSCI Emerging Markes and AC Small Cap Indices, MSCI Small Cap Value and Growh, MSCI Provisional Small Cap and MSCI Small Cap Secors Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology Securiy Daily Ne Reurn MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 25

26 Index Mehodology MSCI Index Calculaion Mehodology SecuriyDailyNeReu rnusd (SecuriyAdjusedMarkeCapUSD SecuriyNeDividendImpacUSD SecuriyIniialMarkeCapUSD ) 1 * 100 SecuriyDailyNeReu rnlocal (SecuriyAdjusedMarkeCapForLocal SecuriyNeDividendImpacForLocal SecuriyIniialMarkeCapUSD ) 1 * 100 Where SecuriyNeDividendImpacUSD EndOfDayNumberOfShares exdae1 * NeDividendPerShare FXrae * InclusionFacor SecuriyNeDividendImpacForLocal EndOfDayNumberOfShares exdae1 * NeDividendPerShare * InclusionFacor ICI * FXrae ICI 1 1 Where SecuriyAd jusedmarkecapforlocal is he Adjused Marke Capializaion of securiy s in USD convered using FX rae as of -1 SecuriyAd jusedmarkecapusd is he Adjused Marke Capializaion of securiy s in USD convered using FX rae as of SecuriyIn iialmarkecapusd is he Iniial Marke Capializaion of securiy s in USD a ime InclusionF acor is he inclusion facor of he securiy s a ime. The inclusion facor can be one or he combinaion of he following facors: Foreign Inclusion Facor, Domesic Inclusion Facor, Growh Inclusion Facor, Value Inclusion Facor, Index Inclusion Facor (*). FXrae is he FX rae of he price currency of securiy s vs USD a ime. I is he value of 1 USD in foreign currency. 1 FXrae is he FX rae of he price currency of securiy s vs USD a ime -1. I is he value of 1 USD in foreign currency. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 26

27 Index Mehodology MSCI Index Calculaion Mehodology EndOfDayNu mberofshares ex is he number of shares of he securiy s a he end of dividend ex-dae-1. dae1 NeDividen dpershare is he ne dividend per share expressed in he same currency uni as he price per share of he securiy s o be reinvesed a ime. ICI is he Inernal Currency Index of price currency a ime. The ICI is differen han 1 when a counry changes he inernal value of is currency (e.g. from Turkish Lira o New Turkish Lira ICI = 1,000,000). ICI 1 is he Inernal Currency Index of price currency a ime -1. (*) From June o May , o calculae he sandard or small cap index marke capializaion (excep for FM Counries and China A), he securiy marke cap should be muliplied by he Sandard or Small Cap Index Inclusion Facor. From Sepember o November , o calculae he China A and relaed indices markes capializaion, he China A securiies marke cap should be muliplied by he Sandard Index Inclusion Facor. The Sandard Index Inclusion Facor is solely used for he compuaion of he MSCI Sandard Indices, and no for he Large Cap, Mid Cap and Provisional Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology. The Small Cap Index Inclusion Facor is no used for he compuaion of he MSCI Emerging Markes and AC Small Cap Indices, MSCI Small Cap Value and Growh, MSCI Provisional Small Cap and MSCI Small Cap Secors Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology Iniial Securiy Weigh MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 27

28 Index Mehodology MSCI Index Calculaion Mehodology IniialSec uriyweigh si, EndOfDayNumberOfShares FXrae 1 1 EndOfDayNumberOfShares ( FXrae 1 * PricePerShare 1 1 * PricePerShare * InclusionFacor 1 * InclusionFacor ) * 100 si, SecuriyIniialFullM arkecapusd * InclusionFacor (SecuriyIniialFull MarkeCapUSD * InclusionFacor ) * 100 SecuriyIniialMarkeCapUSD IndexIniialMarkeCapUSD * 100 Where: EndOfDayNu mberofshares 1 PricePerSh are 1 is he number of shares of securiy s a he end of day -1. is he price per share of securiy s a ime -1. InclusionF acor is he inclusion facor of securiy s a ime. The inclusion facor can be one or he combinaion of he following facors: Foreign Inclusion Facor, Domesic Inclusion Facor, Growh Inclusion Facor, Value Inclusion Facor, Index Inclusion Facor (*). FXrae 1 is he FX rae of he price currency of securiy s vs USD a ime -1. I is he value of 1 USD in foreign currency. (*) From June o May , o calculae he sandard or small cap index marke capializaion (excep for FM counries and China A), he securiy marke cap should be muliplied by he Sandard or Small Cap Index Inclusion Facor. From Sepember o November , o calculae he China A and relaed indices markes capializaion, he China A securiies marke cap should be muliplied by he Sandard Index Inclusion Facor. The Sandard Index Inclusion Facor is solely used for he compuaion of he MSCI Sandard Indices, and no for he Large Cap, Mid Cap and Provisional Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology. The Small Cap Index Inclusion Facor is no used for he compuaion of he MSCI Emerging Markes and AC Small Cap Indices, MSCI Small Cap Value and Growh, MSCI Provisional Small Cap and MSCI Small Cap Secors Indices, as hese are all consruced using he Global Invesable Marke Indices mehodology and were no subjec o he ransiion mehodology. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 28

29 Index Mehodology MSCI Index Calculaion Mehodology Currency For index calculaions, all dividends are convered ino USD a he spo rae of he ex dae Number Of Shares And Index Weighing Facor A dividend amoun is expressed per share eniled o he dividend. Since he day before he ex-dae is he las day on which he share is eniled o he dividend, he oal dividend per securiy reinvesed ino an index is equal o he number of shares a he end of he ex-dae-1 muliplied by he dividend per share. In addiion, he weighing facor of he securiy in he index is applied o he oal dividend amoun o be reinvesed. This may be he Domesic Inclusion Facor (DIF), he Foreign Inclusion Facor (FIF), he Value Inclusion Facor (VIF), he Growh Inclusion Facor (GIF) or any inclusion facor considered in he price index calculaion Reinvesmen Mehodology Gross Daily Toal Reurn This series approximaes he maximum possible reinvesmen of regular cash disribuions (dividends or capial repaymens). The amoun reinvesed is he cash disribued o individuals residen in he counry of he company, bu does no include ax credis. Ne Daily Toal Reurn This series approximaes he minimum possible reinvesmen of regular cash disribuions. Provided ha he regular capial repaymen is no subjec o wihholding ax, he reinvesmen in he Ne Daily Toal Reurn is free of wihholding ax. Effecive December 1, 2009, he regular cash dividend is reinvesed afer deducion of wihholding ax by applying he maximum rae of he company s counry of incorporaion applicable o insiuional invesors. MSCI uses differen wihholding ax depending if he indices are inernaional or domesic: Inernaional indices: he maximum rae applicable o non-residen insiuional invesors who do no benefi from double axaion reaies. Domesic indices: he maximum rae applicable o residen insiuional invesors For more informaion on how axes are applicable o dividends, please refer o he Appendix for deails abou he wihholding ax raes for he various counries. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 29

30 Index Mehodology MSCI Index Calculaion Mehodology Timing of reinvesmen The amoun of an announced regular cash disribuion is reinvesed on he ex-dae of such disribuion on is principal exchange. For securiies rading on more han one exchange, MSCI uses he ex-dae a he exchange from which MSCI sources he securiy s price. If a securiy does no rade on he ex-dae or on he scheduled reinvesmen dae of he regular cash disribuion, he reinvesmen is posponed o he day when he securiy resumes rading. The scheduled reinvesmen dae of a dividend can be a dae laer han he dividend ex-dae in cases including, bu no limied o a lae dividend or a dividend correcion Reinvesmen Rules There are wo principal guidelines in accouning for dividends in MSCI s DTR Indices: A recurring cash disribuion in he form of dividend or capial repaymen - will be reinvesed among all he consiuens in an index. I is no considered in price indices A dividend ha is unusually large, i.e. a leas 5% of he securiy cum price, or oherwise unlikely o recur on a regular basis or any dividend ha is paid for wih exraordinary profis is handled by applying a price adjusmen facor and is hence aken ino accoun in price indices as well as DTR Indices. Capial repaymens deemed o be exraordinary are handled by applying a price adjusmen facor and are, herefore, considered in price indices similarly o special dividend. These guidelines are discussed in greaer deail below Dividends Resuling in a Reinvesmen Only The following cash disribuions are reinvesed in he DTR Index: Regular Cash Dividend A regular cash dividend is a disribuion of cash made by a company o is shareholders and is usually paid ou from operaing profis or reained earnings. Regular Capial Repaymen A capial repaymen or reurn of capial is characerized by a cash disribuion from he company s share capial or addiional paid-in capial (capial conribuion reserve) o is shareholders. A capial repaymen is considered as regular if he cash disribuion is in lieu of a regular cash dividend, or is in line wih he dividends policy of he company or wih he hisorical cash disribuions. Provided ha he capial repaymen is no subjec o wihholding ax, he reinvesmen in he DTR Indices is free of wihholding ax. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 30

31 Index Mehodology MSCI Index Calculaion Mehodology Opional Dividend In he case of an opional dividend, he company offers shareholders he choice of receiving he dividend eiher in cash or in shares. However, shareholders elecing he cash opion may receive he dividend consideraion in cash or shares, or some combinaion of cash and shares. These dividends are a common pracice in he U.S. For dividend reinvesmen purposes, MSCI assumes ha invesors elec he cash opion, herefore he dividend is reinvesed in he MSCI DTR Indices and price adjusmen is no necessary (if he dividend is less han 5% of he cum marke price of he underlying securiy). In he even ha shareholders elecing he cash opion receive he dividend disribuion in shares, or a combinaion of cash and shares, MSCI will increase he number of shares accordingly afer resuls have been officially communicaed, wih wo full business days noice. In oher counries, companies may exend shareholders he choice o paricipae in cerain programs (including, bu no limied o Dividend Reinvesmen Plans and Bonus Buyback programs). In hese cases, MSCI will assume invesors choose he defaul disribuion. If no defaul disribuion is available, MSCI will assume invesors elec he cash opion. If some shareholders choose o ake he sock opion, when i is confirmed, he number of shares will be increased accordingly a he nex regularly scheduled Index Review. Ineres on Capial The ineres on capial dividend is a cash paymen o shareholders accouned for as a pre-ax ineres expense by he company. The balance shee and he book value do no change. Ineress on capial are common in Brazil Dividends Resuling in a Reinvesmen or in a Price Adjusmen The dividends below are reinvesed in he DTR index if, a day prior o he ex-dae, he dividend impac on he price is less han 5%. However, if he impac is a leas 5%, he dividend will be refleced in he index hrough a price adjusmen. Special/Exra Dividend The company declares he dividend as special or exraordinary. I is usually funded by a special even or from exraordinary profis. MSCI may consider irregular and unusually large dividends as special even if hey are no declared as such by he company. Special cash dividends ha are greaer han or equal o 5% of he marke price of he underlying securiy are refleced in he MSCI Indices hrough an adjusmen on heir ex-dae. A Price Adjusmen Facor (PAF) using he gross dividend amoun is applied for he MSCI Price Indices, he MSCI Gross DTR Indices and he MSCI Ne DTR Indices. For special cash dividends subjec o wihholding axes as defined in Secion , MSCI reinvess a negaive amoun corresponding o he wihholding ax in he MSCI Ne DTR Indices only. This negaive reinvesmen is refleced simulaneously wih he PAF on he ex-dae of he special cash dividend. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 31

32 Index Mehodology MSCI Index Calculaion Mehodology Commemoraive Dividend (memorial) A company declares a dividend as commemoraive/memorial. The funds come from exraordinary profi or cash generaed by a special even. Reroacive/Arrears Dividend Reroacive dividends are paid in Ialy when a company has o pay a dividend o revenue-guaraneed (RISP) shares o make up for previous years non-paymens. Special Dividend o Non-Domesic Shareholders A company pays is non-domesic shareholders a bonus dividend o compensae for he ax credi disribued o domesic shareholders. This is a common pracice in New Zealand. Noe ha a special dividend is considered a regular cash dividend ( regular special ) afer being disribued for hree consecuive years, and if i is proven o have been aken ou of recurring operaing profis Dividends Resuling in a Price Adjusmen Only A specific price adjusmen is always applied o he securiy in he following cases: Sock Dividend (sock bonus/grais issue) The company issues shares a no direc cos o he shareholders. The funds are aken ou from he curren year s earnings. In he case of a sock bonus/grais issue, he company disribues a par of he reserves (reained earnings from previous years) o is shareholders. For Taiwanese sock dividends subjec o wihholding axes as defined in Secion , MSCI reinvess a negaive amoun corresponding o he wihholding ax in he MSCI Ne DTR Indices only. This negaive reinvesmen is refleced simulaneously wih he PAF on he ex-dae of he sock dividend. Exraordinary Capial Repaymen For he capial repaymens ha are deemed o be exraordinary compared o he dividends policy of he company or o he hisorical cash disribuions, he price of he securiy is adjused on he ex-dae of he exraordinary capial repaymen. Dividend Paid in Shares of anoher Company The company disribues sock of anoher company as a dividend. The number of shares held remains he same, bu he price will decrease by he value of he disribued securiy. MSCI considers oher cash paymens relaed o Corporae Evens, such as mergers, acquisiions, liquidaions, ec. on a case-by-case basis. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 32

33 Index Mehodology MSCI Index Calculaion Mehodology 2.3. Processing Rules Dividend Daa Raw dividend daa is provided by muliple elecronic daa feeds and is checked for compleeness and correcness. MSCI s Daily Toal Reurn process requires ha dividends be confirmed by a leas wo disinc daa sources. Mos dividends are received and validaed hrough elecronic feeds, bu some evens may require confirmaion from oher sources, such as sock exchanges or he company. In addiion, MSCI moniors securiies for which a dividend is expeced based on previous dividend announcemen frequency, bu which has no ye been received hrough he regular daa sources Corporae Acions A corporae acion, which changes he number of shares ousanding for a company, may ake place beween he dividend s announcemen dae and is ex-dae. As he number of shares on he day preceding he ex-dae is used o calculae he dividend amoun o be reinvesed, MSCI will adjus he dividend o reflec he number of shares on ha day. Following cerain corporae evens, he number of shares used in MSCI Index calculaions on he day prior o he ex-dae may include shares ha are no issued ye or ha are no eniled o he dividend. In hose cases, MSCI reinvess he dividend on he ex-dae as if all shares included in MSCI Index calculaions were eniled o he dividend Correcions A dividend ha has been reinvesed may need o be amended, due o an error in is ex-dae, in he dividend amoun, or in he dividend currency. MSCI will give advance noificaion for dividend correcions ha are received afer heir ex-dae. Consequenly, he correcion in he index will be posponed o he nex business day following MSCI s receip and announcemen of he informaion. The following rules apply: Acion is aken only if he error is discovered wihin 12 monhs of he ex dae. In he case of a correcion, MSCI will use he number of shares effecive on he day prior o he ex-dae. The day s spo rae is used for currency conversion. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 33

34 Index Mehodology MSCI Index Calculaion Mehodology A hisorical correcion will be applied o all indices impaced by more han 50 basis poins 1 if he impac on a counry or World / EM indusry group index is over 50 basis poins. Saring December 1, 2010, for he MSCI Fronier Markes Indices (including MSCI GCC Counries Indices), here will be a hisorical correcion only if he impac on he MSCI Fronier Markes region is over 50 basis poins. The securiy ha needs a dividend correcion may have changed is saus for index inclusion beween he ex-dae and he correcion dae. For example, his may be due o he securiy s subsequen exclusion from he index, or a change in is indusry or counry classificaion. Applying he correcion wih he curren saus may reinves dividends ino he wrong index. If here is a change in he securiy saus beween he ex-dae and he correcion dae, no correcion amoun will be reinvesed Paymen Defaul A correcion will be applied when a dividend is declared unpaid (paymen defaul). This may resul in a negaive reinvesmen. Pas index values (hisory) are no correced. The following rules apply: Acion is aken only if he paymen defaul is discovered wihin 12 monhs of he ex-dae and is in line wih he price index correcion policy, where MSCI applies a 12 monh correcion period. MSCI uses he number of shares effecive on he day prior o he original ex-dae. The defaul amoun is reinvesed on he day i is announced. The day s spo rae is used for currency conversion Lae Dividends A lae dividend is a dividend ha is only known afer is ex-dae. I is processed under he correcion policy as described in sub-secion above Counry Excepions Korea and Russia: Lae Dividend Korean and Russian companies declare or may declare heir dividends afer heir ex-dae. As no esimaed dividends are available before he ex-dae and no flucuaion in he price (due o he dividend) is visible on he ex-dae, he dividends are reinvesed on he nex business day following he recepion dae from he daa sources wihou any correcion. MSCI will use he number of shares effecive on he day prior o he ex-dae. 1 The 50 basis poin limi is linked o he price index correcion policy and will be revised accordingly o reflec any changes in his policy. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 34

35 Index Mehodology MSCI Index Calculaion Mehodology In he case of Korean and Russian companies declaring heir dividends prior o heir ex-dae, MSCI will reinves dividends ino he MSCI DTR Indices on he day he securiy is quoed ex-dividend on is principal exchange (in accordance wih he secion 2.2.1). Should he dividend amoun for Korean and Russian companies change following approval by he shareholders a he general meeing, here will be no correcion of he pas index levels. For he deposiary receips (DR) of Russian companies, MSCI will wai unil he DR deposiary bank announces he dividend amoun before reinvesing he dividend on he nex business day following he recepion dae of such dividend amoun from MSCI s daa sources. Japan: Lae Dividend Many Japanese companies declare heir dividends afer he ex-dae. As esimaed dividends are available before he ex-dae and are broadly used, an esimaion of he dividend is reinvesed on he exdae. When a company does no declare an esimaed dividend, MSCI will use he previous year amoun as he esimaion. Should he difference beween he esimaed and raified dividend amoun warran correcion, i will be processed as a paymen defaul (reinvesmen wihou correcing pas index levels) on he nex business day following he recepion dae from he daa sources. USA: Redempion Righ When a company redeems shares disribued o shareholders due o a poison pill righs issue (applies mainly in USA), here may be a change in he company s capial srucure. In his case MSCI will apply a price adjusmen Taxes On Dividends Shareholders may be axed on dividend paymens. Tax raes vary depending on he company s and shareholder s counry of domicile. Tax daa is moniored on a regular basis and is updaed when necessary Tax Credi A ax credi relaed o a dividend can be considered as a reimbursemen of ax already received by he fiscal adminisraion. In counries operaing under an impuaion ax sysem, a company s annual earnings are axed before disribuion o he shareholders, and hen he shareholders pay axes on he dividend. Some counries operaing under an impuaion ax sysem provide shareholders wih a ax credi o offse he amoun of he ax hey would oherwise owe in respec of he dividend. 2 MSCI does no ake ino accoun he amoun of a ax credi in calculaing eiher gross or ne dividends. 2 Singapore compleely migraed o a one-ier ax sysem from impuaion sysem effecive January 1, Under a one-ier or single-ier ax sysem, a company pays a ax on is axable income and shareholders are no charged wih a ax on dividends paid o hem by he company. Malaysia has been ransiioning from he impuaion sysem MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 35

36 Index Mehodology MSCI Index Calculaion Mehodology Wihholding Tax A wihholding ax relaed o a dividend is a ax on he income of he shareholder wihheld by he company when he dividend is paid o a shareholder. The wihholding ax rae depends on he ax saus of he shareholder. MSCI uses he maximum wihholding ax rae applicable o insiuional invesors in calculaing MSCI ne dividends. A non-residen shareholder mus also pay axes on dividends in his/her domesic counry as par of his/her income axes. Counries may eliminae his double axaion by signing bi-laeral double axaion reaies. MSCI uses companies counry of incorporaion o deermine he relevan dividend wihholding ax raes in calculaing he ne dividends and he MSCI ne DTR Indices. In cases where he wihholding ax rae in he company s counry of incorporaion is higher han he MSCI company s counry of classificaion as deermined in accordance o Appendix III of he MSCI Global Invesable Markes Indices Mehodology, MSCI will make a specific analysis o deermine he acual wihholding ax rae applied o non-residen insiuional invesors. Companies counry of incorporaions are reviewed on a semi-annual basis and changes o companies wihholding ax raes, if any, are made wih he May and November Semi-Annual Index Reviews. In he calculaion of he MSCI Ne DTR Inernaional Indices, MSCI uses he wihholding ax rae applicable o non-residen insiuional invesors ha do no benefi from double axaion reaies. In he calculaion of he MSCI Ne DTR Domesic Indices, MSCI uses he wihholding ax rae applicable o domesic insiuional invesors. Provided ha he regular capial repaymen is no subjec o wihholding ax, he reinvesmen in he MSCI Ne DTR is free of wihholding ax Counry Excepion Ausralian Dividends Some Ausralian companies pay heir dividends wih franking credis aached in order o pass on o invesors he value of any ax ha he company has already paid on is profis. Dividends can be fully franked, parially franked or unfranked. Foreign non-residen invesors are subjec o he Ausralian dividend wihholding ax on he unfranked porion of a dividend. However, foreign non-residen invesors are no subjec o he Ausralian dividend wihholding ax on he unfranked porion of he dividend o he exen ha i is declared as condui foreign income 3 by Ausralian companies, or on he franked porion of he dividend. o a single-ier ax sysem beginning on January 1, All Malaysian companies mus move o a single-ier ax sysem by no laer han January 1, Condui foreign income is foreign income received by a foreign residen via an Ausralian corporae ax eniy, and is ha income which would ordinarily no be axed under he relevan Ausralian ax laws (source: Ausralian Governmen, The Treasury). MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 36

37 Index Mehodology MSCI Index Calculaion Mehodology In he calculaion of he MSCI Ne DTR Inernaional Indices for Ausralian dividends, MSCI uses he wihholding ax rae 4 applicable o foreign non-residen insiuional invesors on he unfranked porion of he dividend ha is no designaed as condui foreign income. MSCI does no apply wihholding ax rae on he franked porion of he dividend or he unfranked porion of he dividend declared o be condui foreign income. In he case ha he franking percenage and/or he condui foreign income no publicly available prior o he ex-dae, he franking percenage and/or he condui foreign income will be assumed zero correspondingly. The effecive wihholding ax rae being applied o he Ausralian dividends in he MSCI Ne DTR Inernaional Indices is as follows. Effecive wihholding ax rae = Ausralia defaul wihholding ax rae x (100% - franking % - condui foreign income %) Examples of Calculaion Franking Percenage Condui Foreign Income Percenage Defaul Wihholding Tax Rae Effecive Wihholding Tax Rae Gross Amoun Ne Amoun Securiy A 100% 0% 30% 0% AUD 2.56 AUD 2.56 Securiy B 75% 25% 30% 0% AUD 1.47 AUD 1.47 Securiy C 50% 0% 30% 15% AUD 1.00 AUD 0.85 Securiy D 0% 50% 30% 15% AUD 2.00 AUD 1.70 Taiwanese Sock Dividends In Taiwan, sock dividends can be disribued from capial surplus or reained earnings. The porion of sock dividends disribued from reained earnings is subjec o he defaul wihholding ax rae agains he par value of each new share. The porion of sock dividends paid ou from capial surplus is no subjec o a wihholding ax. To ake ino accoun his wihholding ax in he MSCI Indices, MSCI reinvess a negaive amoun corresponding o he wihholding ax in he MSCI Ne DTR Indices only. This negaive amoun of he wihholding ax is calculaed using he following formula. Wihholding ax of Taiwanese sock dividend = Number of shares received which are subjec o he wihholding ax x par value of each share x Taiwanese defaul wihholding ax rae 5. This negaive reinvesmen is refleced simulaneously wih he PAF on he ex-dae of he sock dividend. 4 Please refer o he Appendix for he laes wihholding ax rae for Ausralia. 5 Please refer o he Appendix for he laes wihholding ax rae for Taiwan MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 37

38 Index Mehodology MSCI Index Calculaion Mehodology Definiions Announcemen dae - he dae on which he company announces is nex dividend paymen. Recepion dae - he dae on which he informaion abou he dividend is received by MSCI from is daa sources. Record dae - he dae on which an individual mus own shares (be he holder of record) in order o receive a declared dividend or capial gains disribuion. Ex-dae - he firs day on which, if an invesor buys he securiy, he securiy no longer carries he righ o he declared dividend. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 38

39 Index Mehodology MSCI Index Calculaion Mehodology Appendices MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 39

40 Index Mehodology MSCI Index Calculaion Mehodology Appendix I: Sunday Index Calculaion Calculaion Mehodology A seleced lis of MSCI Indices is calculaed on Sunday o reflec he performance of he markes open on his day 6. In order o preserve compaibiliy wih he oher MSCI Inernaional Indices, which are calculaed from Monday o Friday, MSCI uses he concep of a Monday pre-opening (inermediae) calculaion for he Sunday calculaion. The Sunday index performance capures he price changes and reflecs corporae evens effecive on his day. In case of corporae evens occurring on Sundays and where a PAF is needed, he PAF is applied o he securiy on Sunday and Monday. If he securiy does no rade on Monday, he Sunday closing marke price is carried forward o Monday, including he PAF. Changes in he securiy s number of shares, FIFs and/or DIFs due o corporae evens occurring on Sunday are implemened as of he close of Monday, regardless of wheher he corporae even requires he applicaion of a PAF on Sunday or no. The index consiuen lis is he same as he one o be used for he Monday calculaion. WM/Reuers spo FX raes as of he previous Friday is carried forward o Sunday in order o perform he index calculaion in USD. No dividends are reinvesed on Sundays. Consequenly, he Daily Toal Reurn (DTR) index performances for Sunday will equal o he ones of he price index. The chain-linking for hese indices can be summarized as follows: Sunday s daily index performance is compued by comparing Sunday s adjused prices and he previous Friday s unadjused prices Monday s daily index performance is compued, as currenly, by comparing Monday s adjused prices and he previous Friday s unadjused prices 6 Effecive Ocober 16, 2010, MSCI has disconinued he calculaions and disribuion of he Saurday files. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 40

41 Index Mehodology MSCI Index Calculaion Mehodology Iniial Weighs Thursday Friday Saurday Sunday Consiuens Monday Friday calculaion Sunday calculaion Monday calculaion Index Calculaion Formulas IndexLevelLocal IndexLevelLocal Saurday/Sunday Friday * si,monday SecuriyAdjusedFullM arkecapforlocal SecuriyIniialFullMarkeCapUSD Sunday * InclusionFacor Monday si,monday Sunday * InclusionFacor Monday IndexLevelUSD IndexLevelUSD Saurday/Sunday Friday * si,monday SecuriyIniialFullMarkeCapUSD Sunday * InclusionFacor Monday si,monday SecuriyAdjusedFullM arkecapusd Sunday * InclusionFacor Monday Where: InclusionF acor Monday is he inclusion facor of he securiy as of he following Monday. The inclusion facor can be one or he combinaion of he following facors: Foreign Inclusion Facor, Domesic Inclusion Facor, Growh Inclusion Facor, Value Inclusion Facor, Index Inclusion Facor (*). The Securiy Full Marke Caps are calculaed as follows: SecuriyAdjusedFullM arkecapforlocal EndOfDayNumberOfShares Friday FXrae Sunday Friday * PricePerShare Sunday * PAF Sunday ICI * ICI Monday Friday MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 41

42 Index Mehodology MSCI Index Calculaion Mehodology SecuriyAdjusedFullMarkeCapUSD EndOfDayNumberOfShares Friday FXrae Sunday Sunday * PricePerShare Sunday * PAF Sunday SecuriyIniialFullMarkeCapUSD EndOfDayNumberOfShares FXrae Friday Friday Sunday * PricePerSh are Friday Where: EndOfDayNu mberofshares Friday is he number of shares of securiy s as of he end of he previous Friday. PricePerSh are Sunday is he price per share of he securiy s as of Sunday. PricePerSh are Friday is he price per share of securiy s as of he previous Friday. PAF Sunday is he Price Adjusmen Facor of he securiy s as of Sunday. FXrae Sunday is he FX rae of he price currency of securiy s vs USD as of Sunday. I is he value of 1 USD in foreign currency. FXrae Friday is he FX rae of he price currency of securiy s vs USD as of he previous Friday. I is he value of 1 USD in foreign currency. ICI Monday is he Inernal Currency Index of price currency as of Monday. The ICI is differen han 1 when a counry changes he inernal value of is currency (e.g. from Turkish Lira o New Turkish Lira ICI = 1,000,000). ICI Friday is he Inernal Currency Index of price currency as of previous Friday. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 42

43 Index Mehodology MSCI Index Calculaion Mehodology Appendix II: Annualized Traded Value Raio (ATVR) and Annual Traded Value Calculaion Mehodology The Annualized Traded Value Raio (ATVR) is used o measure liquidiy. MSCI uses ATVR as an invesabiliy crierion o deermine he inclusion of securiies ino he MSCI Indices. MSCI disribues ATVR fields on a monhly basis. Below he fields ha are disribued are defined. Noe ha he daa used by MSCI during he index reviews may differ from he daa disribued. ATVR Calculaion Formulas 1. Monhly Median Traded Value Taking he median screens ou exreme daily rading volumes: MonhlyMed iantradedvalue MedianTradedValueUSD MonhN MonhN * NbOfSecuriyTradingDays MonhN Where: MedianTradedValueUSD Median DailySecuriyTradedV MonhN alueusd MonhN DailySecur iytradedvalueusd DailySecuriyTradedVolume * PricePerShare /FXrae NbOfSecuri ytradingdays MonhN is he number of days in he monh where he securiy has been raded DailySecur iytradedvolume represens he number of securiies raded during he day PricePerSh are is he price per share of he securiy s a ime. FXrae is he FX rae of he price currency of securiy s vs. USD a ime. I is he value of 1 USD in foreign currency. 2. Monhly Traded Value Raio (MTVR) Dividing he monhly median raded value of a securiy by is free floa-adjused securiy marke capializaion a he end of he monh gives he monhly median raded value raio MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 43

44 Index Mehodology MSCI Index Calculaion Mehodology MTVR_FIFAd j MonhN MonhlyMedianTradedValue MonhN /SecuriyFIFAdjusedMarkeCapU SD MonhN_enday MTVR_DIFAd j MonhN MonhlyMedianTradedValue MonhN /SecuriyDIFAdjusedMarkeCapU SD MonhN_enday Where: SecuriyFI FAdjusedMarkeCapUSD MonhN_end day is he securiy marke capializaion a he end of he monh, SecuriyAd jusedmarkecapusd MonhN_end day, adjused wih FIF SecuriyDI FAdjusedMarkeCapUSD MonhN_end day is he securiy marke capializaion a he end of he monh, SecuriyAd jusedmarkecapusd MonhN_end day, adjused wih DIF 3. Annualized Traded Value Raio (ATVR) ATVR_FIFAd j ATVR_DIFAd j MTVR_FIFAd MonhN j Monh_i in,n 1...N11 MTVR_DIFAd MonhN j Monh_i in,n 1...N11 The ATVR is no calculaed when less han 12 monhs of monhly raded value raios are available. 4. Annual Traded Value The annual raded value is he sum of he monhly median raded values. AnnualTrad edvalue MonhlyMedianTradedV MonhN alue Monh_i in,n 1...N11 The Annual Traded Value is no calculaed when less han 12 monhs of monhly median raded values are available. 5. Aggregaed informaion In he calculaion of he aggregaed informaion, he rading volumes in deposiory receips associaed wih ha securiy, such as ADRs or GDRs, are also considered. I is obained by summing up he ATVR of each lising. Aggregaed FIF/DIF adjused ATVR is he sum of FIF/DIF adjused ATVR of K securiies ha are linked by he same issuer, share class and share ype: Aggregaed ATVR_FIFAd j ATVR_FIFAd MonhN j MonhN, linkedsec_i i1,2...k MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 44

45 Index Mehodology MSCI Index Calculaion Mehodology A ggregaedatvr_difadj ATVR_DIFAd MonhN j MonhN, linkedsec_i i1,2...k Aggregaed ATVR is calculaed even if less han 12 monhs of monhly median raded values are available for one, several or all lisings. When less han 12 monhs are available for a given lising, MSCI will use he ATVR based on he monhly median raded values for he las 6 monhs, 3 monhs or 1 monh for ha lising (depending on daa availabiliy). The Aggregaed Annual Traded Value includes rading volumes in deposiary receips or oher alernae lisings associaed wih ha securiy. I is obained by summing up he Annual Traded Values of each lising: Aggregaed AnnualTradedValue AnnualTrad MonhN edvalue MonhN, linkedsec_i i1,2...k MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 45

46 Index Mehodology MSCI Index Calculaion Mehodology Appendix III: Raes Closing Spo Raes Unil December 30, 1993, MSCI used he exchange raes aken from he Reuers muli conribuor pages a 4.00PM CET. Since December 31 s, 1993, MSCI has been using he WM/Reuers Closing Spo Raes, aken a 4PM London ime, for all he counries for which i provides indices, excep for he Lain American counries. A he ime, MSCI esablished a special foreign exchange policy for Lain American counries in view of he risks of imporan movemen of currencies in some of hese markes beween he 4PM London closing and he close of he respecive Lain American markes. Saring July 26, 2000, MSCI began o use he WM/Reuers Closing Spo Raes, aken a 4PM London ime, for all he counries i provides indices including Lain American counries. In case WM/Reuers does no provide raes for specific markes on given days (for example Chrismas Day and New Year Day), he previous business day s raes are normally used. MSCI independenly moniors he exchange raes on all is indices. MSCI may under excepional circumsances elec o use alernaive sources of exchange raes if he WM/Reuers raes are no available, or if MSCI deermines ha he WM/Reuers raes are no reflecive of marke circumsances for a given currency on a paricular day. In such circumsances, an announcemen would be sen o cliens wih he relaed informaion. If appropriae, MSCI may conduc a consulaion wih he invesmen communiy o gaher feedback on he mos relevan exchange rae. Forward Raes MSCI uses he spo and 1-monh premium/discoun as provided by WM/Reuers o compue he 1- monh Forward exchange raes. These values are aken a 4PM London ime MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 46

47 Index Mehodology MSCI Index Calculaion Mehodology Appendix IV: Singapore & Malaysia A Hisory of Inclusion in he Emerging and Developed Markes Indices Sock Markes Sock rading has a long hisory in Singapore daing back o he 1930 s. In 1960 he Malayan Sock sared rading shares publicly. There were rading floors in boh Singapore and Kuala Lumpur linked as a single marke. When Singapore spli from Malaysia he sock exchange coninued o operae as one under he name Sock of Malaysia and Singapore (SEMS). In 1973 he accord ha allowed for he converibiliy a par beween he Singapore Dollar and Malaysian Ringgi was erminaed. This led o he separaion of SEMS ino he Kuala Lumpur Sock (KLSE) and he Sock of Singapore (SES). Malaysian companies coninued o rade heavily in Singapore. MSCI Indices On December 1s 1972, he MSCI Singapore/Malaysia Index was added o he World Index. The index was developed in cooperaion wih he Overseas-Chinese Banking Corporaion, which published he same index under he name O.C.B.C. Index. As is he case wih oher MSCI Indices he purpose was o rack hose securiies represenaive of Singapore. However as approximaely half he marke capializaion and liquidiy of he SES was due o Malaysian shares he index was designed o incorporae boh Singaporean companies as well as hose Malaysian shares ha raded in Singapore. This aspec was differen from oher MSCI Indices, as he norm is o only include domesically lised shares. In ligh of he long inegraed hisory of he Malay Peninsula and Singapore, and he coninued dual lising of shares, i was deemed o be more represenaive o include hese Malaysian companies as represenaive of he opporuniy se of he SES. MSCI launched is emerging marke series on January 1, Among oher counry indices was an index of Malaysia wih 59 securiies. As MSCI was now covering emerging markes he MSCI Mexico Index was pulled ou of MSCI World. The World Index was o be considered a developed marke index. In 1989 he Malaysian governmen announced ha Malaysian companies would be asked o delis heir shares from he SES. Previously he governmen had prohibied newly lised shares of Malaysian companies from lising on he SES. In November 1989, reacing o he Malaysian governmen announcemen, MSCI iniially announced is inenion o remove Malaysian securiies from he Singapore/Malaysia index. The following monh MSCI announced ha he erms and iming of he Malaysian delising were oo ambiguous. As a resul MSCI would ake a wai and see approach prior o removing any Malaysian securiies from he Singapore/Malaysia index. As a resul he Malaysian shares in he MSCI Singapore/Malaysia Index were effecively frozen or grandfahered. Over ime, some of hese shares were no longer lised on Singapore bu coninued o be included in he index using he Ringgi price a which hey were raded in Kuala Lumpur. In January 1992 MSCI announced a change. The Singapore/Malaysia index was now composed of a represenaive sampling of Singaporean companies coupled wih grandfahered Malaysian securiies ha used o rade in Singapore bu were no longer rading here as a resul of he delising requiremen. Malaysia was clearly an emerging marke, for example is GDP per capia was $2,340 considerably below MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 47

48 Index Mehodology MSCI Index Calculaion Mehodology ha of Spain ($10,920), he lowes counry ha was currenly in he MSCI World Index. Noneheless many developed marke invesors had hisorically purchased Malaysian companies as a resul of some Malaysian companies being included in he MSCI World and EAFE Indices. Deleing all Malaysian companies from he developed marke indices could have been very disrupive o he markes. As a resul of his dilemma MSCI decided o add Malaysia as a counry o he World and relaed developed marke indices while coninuing o include Malaysia in he emerging marke series. One could no have a credible emerging marke series wihou he coninued inclusion of Malaysia in ha series. Thus Malaysia was o be represened in boh he developed and emerging marke series. A he ime MSCI acknowledged ha he exisence of Malaysia in boh he developed and emerging marke series was less han ideal. As of April 30h 1993 Malaysia was fully added o he developed marke series, resuling in he addiion of approximaely 40 securiies. This was because he MSCI Malaysia Index was designed o represen he profile of he enire Malaysian marke whereas he curren Malaysian socks in he World and EAFE Indices were seleced o reflec he composiion of hose Malaysian socks rading in Singapore. ACWI cliens would no have o worry abou double couning as Malaysia was represened a is appropriae marke cap weigh. The index of Singapore represened he coninuaion of he Singapore/Malaysia index and herefore reains is base dae of December 31, Developed and emerging marke indices excluding Malaysia were calculaed for hose cliens who preferred a differen classificaion. The Asian Crisis The Asian Crisis, saring in 1997 wih he devaluaion of he Thai Bah evenually spread o Malaysia. On Sepember 1s 1998 Malaysia imposed a series of resricions on he converibiliy of he Ringgi. These conrols effecively prohibied he repariaion of funds. On Sep 4h, 1998 MSCI announced ha effecive Sep 30h Malaysia would be removed from he EAFE and World Indices and ha is saus in EMF was under review. In he MSCI announcemen of he change i was saed he limiaions in repariaing invesmen proceeds would seriously challenge he objecive and inegriy of he MSCI Developed Markes Indices, were he Malaysian securiies o remain in hese indices. These resricions imposed by he governmen of Malaysia hus ended he legacy issue of Malaysian securiies appearing in boh he developed and emerging marke series. On Sep 28h, 1998 MSCI announced ha Malaysia would be removed from he MSCI EMF and ACWI Free series as of he close of November 30h, As par of he capial conrols imposed, foreign invesors became obligaed o hold Malaysian securiies for a period of one-year commencing Sep 1s, 1998, before any possible capial repariaion. The auhoriies also imposed a fixed exchange rae of 3.8 Ringgi o he US dollar. The measures aken by he governmen along wih he lack of ransparency mean ha Malaysia s inclusion in he Free series of indices was no longer jusified. A discoun of 30% was applied o he valuaion of he MSCI Malaysia Index in US dollars, effecive Sep 30h, The discoun was applied because marke forces no longer deermined he official exchange rae. On February 5h, 1999 MSCI announced ha effecive February 26h, 1999 he discoun would be reduced o 15%. This followed he Malaysian Governmen announcemen on he previous day ha i was alleviaing he resricions on he repariaion of invesmens. As a resul of he removal of he resricions on he repariaion of capial, MSCI announced on Augus 12, 1999, he removal of he 15% discoun effecive Augus 30, On November 23, 1999, MSCI announced ha Malaysia would be re-included fully a 100% in he EMF and AC Free indices as of May 31, MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 48

49 Index Mehodology MSCI Index Calculaion Mehodology MSCI Malaysia Indices will be removed from he MSCI Emerging Markes Free (EMF) series and he MSCI All Counry (AC) Free Indices effecive as of he close of 30h November, 1998 Of course Malaysia was no readmied o he developed marke series, as is inclusion here was a resul of he previously explained anomaly. Quick Facs Malaysia was par of he Developed Marke indices: From December 1, 1972 o May 2, 1993, MSCI calculaed a combined index, he Singapore/Malaysia index - due o he hisory of Malaysian securiies rading in Singapore. From May 3, 1993 up o he close of Sep 30, 1998, Malaysia was par of DM as an individual counry (separaed from Singapore). Malaysia has been par of he Emerging Marke indices from 1987 o presen: Wih a discoun of 30% from Sep 30, 1998 o Feb 25, 1999 Wih a discoun of 15% from Feb 26, 1999 o Aug 29, 1999 Wih no discoun since Aug 30, 1999 Malaysia has been par of he EMF index: From 1987 o Nov 30, 1998 And since June 1, 2000 MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 49

50 Index Mehodology MSCI Index Calculaion Mehodology Appendix V: Singapore and Singapore Free Wha is he difference beween he MSCI Singapore Index and he MSCI Singapore Free Index; he MSCI EAFE Index and he MSCI EAFE Free Index; he MSCI World Index and he MSCI World Free Index? In he 1990s, Singapore enaced a sysem o preven companies in sraegic indusries (mainly banks, airlines and he media) from being conrolled by foreigners. Cerain shares had limis on he percen ha could be purchased by foreigners. Once he limi was reached, hese shares raded a a premium price. The MSCI Singapore Free Index used he prices a which foreigners could rade. MSCI also sared calculaing he regional indices, MSCI World Free Index, MSCI EAFE Free Index and MSCI Pacific Free Index o include he MSCI Singapore Free Index as well as o reflec invesmen resricions in some of he Nordic counries and Swizerland. The MSCI Singapore Index (non-free version) refleced he invesmen opporuniies applicable o domesic invesors. In May of 1999, he foreign ownership resricions in Singapore were lifed and as of ha dae, he MSCI Singapore Index and MSCI Singapore Free Index and he corresponding regional developed marke Free and non-free indices have had he same consiuen marke caps and performance. Only he absolue index levels coninue o differ. MSCI will coninue boh he Free and Non-Free versions of MSCI Singapore Index, MSCI EAFE Index and MSCI World Index o reflec he differing hisory. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 50

51 Index Mehodology MSCI Index Calculaion Mehodology Appendix VI: Wihholding Tax Raes Counry Of Incorporaion Wihholding Tax Raes (%) (1) Counry Of Incorporaion Wihholding Tax Raes (%) (1) Code Name Foreign Domesic Code Name Foreign Domesic AE AN Unied Arab Emiraes 0 0 KE Kenya 10 Neherlands Anilles 0 KR Korea 22 AR Argenina 0 KW Kuwai 15 0 AT Ausria 25 KY Cayman Islands 0 AU Ausralia (2) 30 KZ Kazakhsan 0 BA Bosnia & Herzegovina 0 LB Lebanon 10 BD Bangladesh 20 LI Liechensein 4 BE Belgium 25 LK Sri Lanka 10 BG Bulgaria 5 LR Liberia 15 BH Bahrain 0 0 LT Lihuania 15 BM Bermuda 0 LU Luxembourg 15 BR Brazil (3) 0 MA Morocco 10 BS Bahamas 0 MH Marshall Islands 0 BW Boswana 7.5 MK Macedonia 10 CA Canada 25 MU Mauriius 0 CH Swizerland 35 MX Mexico 0 CL Chile MY Malaysia (5) 0 CN China (4) 0 or NG Nigeria 10 CO Colombia 0 NL Neherlands 15 CW Curacao 0 NO Norway 25 CY Cyprus 0 NZ New Zealand 15 CZ Czech Republic 15 OM Oman 0 0 DE Germany PA Panama 10 DK Denmark 27 PE Peru 4.1 EE Esonia 0 PH Philippines 30 EG Egyp 0 PK Pakisan 10 MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 51

52 Index Mehodology MSCI Index Calculaion Mehodology Counry Of Incorporaion Code Name Foreign Domesic Wihholding Tax Raes (%) (1) Counry Of Incorporaion Wihholding Tax Raes (%) (1) Cod e Name Foreign Domesic EG Egyp 0 PL Poland 19 ES Spain 21 PR Puero Rico 10 FI Finland 30 PT Porugal 25 FO Faroe Islands 38 QA Qaar 0 0 FR France 30 RO Romania 16 GB Unied Kingdom (6) 0 RS Serbia 20 GG Guernsey 0 RU Russia 15 GH Ghana 8 SA Saudi Arabia 5 0 GI Gibralar 0 SE Sweden 30 GR Greece 25 SG Singapore (8) 0 HK Hong Kong 0 SI Slovenia 20 HR Croaia 12 TH Thailand 10 HU Hungary 0 TN Tunisia 0 ID Indonesia 20 TR Turkey 15 IE Ireland 20 TT Trinidad And Tobago 15 IL Israel 25 TW Taiwan 20 IM Isle Of Man 0 UA Ukraine 15 IN India 0 US USA IT Ialy 20 VG Briish Virgin Islands 0 JE Jersey 0 VN Vienam 0 JM Jamaica ZA Souh Africa 15 JO Jordan 0 ZW Zimbabwe 10 JP Japan (7) 7 Noes: 1. Used in he calculaion of he MSCI Ne Daily Toal Reurn (DTR) Indices. Wihholding ax raes used are he maximum raes of he company s counry of incorporaion applicable o insiuional invesors who do no benefi from double axaion reaies. Foreign raes are used in he MSCI Ne DTR Inernaional Indices and Domesic raes are used in he MSCI Ne DTR Domesic Indices. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 52

53 Index Mehodology MSCI Index Calculaion Mehodology 2. For Ausralian dividends, franking percenage and condui foreign income are aken ino consideraion on calculaion of he MSCI Ne DTR Indices. The acual wihholding ax rae for an Ausralian dividend ranges from 0% o 30%. For deails, please refer o he secion Ineres on capial is subjec o a 15% wihholding ax. 4. For he MSCI China Index, he wihholding ax raes are excepionally based on Chinese securiies share ypes, regardless of he company s counry of incorporaion. B-share and H- share are subjec o a 10% wihholding ax. P-Chip and Red Chip are subjec o a 0% wihholding ax, unless a specific wihholding ax of 10% is announced by he companies. 5. Malaysia is currenly ransiioning from he impuaion sysem o a single-ier ax sysem. Dividends under he impuaion sysem have a 25% ax credi, which is excluded from boh MSCI gross and ne dividends, please refer o secion for furher deails. No ax credi is applied o dividends under he single-ier ax sysem. 6. Cash dividends paid by companies incorporaed in he Unied Kingdom include a 10% ax credi. MSCI does no ake ino consideraion he ax credi for boh he gross and ne dividend amouns. As here is no wihholding ax in he Unied Kingdom, he gross and ne amouns of he cash dividends o be reinvesed in he MSCI Ne Daily Toal Reurn (DTR) indices are equal. 7. For Japanese dividends, effecive January 1, 2013, he wihholding ax rae will be changed o 7.147% following a surax rae of 2.1% on he curren base wihholding ax rae of 7%. 8. Dividends on Real Esae Invesmen Truss (REITS) are subjec o a 10% wihholding ax. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 53

54 Index Mehodology MSCI Index Calculaion Mehodology Appendix VII: Closing Prices Policy Prices used in MSCI End of Day Index Calculaions Unless oherwise indicaed, he prices used o calculae he MSCI Indices are he official exchange closing prices or hose figures acceped as such. Please noe ha MSCI reserves he righ o use an alernaive pricing source on any given day The sources lised below are he "sandard" MSCI pricing sources. Counry Reuers Code Bloomberg Code Marke Idenifier Code (MIC) Price used Descripion (For more deailed informaion, please conac he relevan exchange) Closing Prices availabiliy (local ime) Argenina Bolsa de Comercio de Buenos Aires.BA AF XBUE Las raded price Las round lo rade wih a 72 hour selemen basis. Round los in Argenina-Bolsa de Comercio de Buenos Aires vary for each sock and are esablished on a daily basis. 5:00PM Argenina (US lised Deposiory Receips) NASDAQ Global Selec Marke.OQ UW XNGS see USA (NASDAQ Global Selec Marke) see USA (NASDAQ Global Selec Marke) see USA (NASDAQ Global Selec Marke) Argenina (US lised Deposiory Receips) NYSE.N UN XNYS see USA (NYSE) see USA (NYSE) see USA (NYSE) Ausralia Ausralian Sock (ASX).AX AU XASX Aucion close The closing price is deermined in a single price aucion which akes place a he end of normal rading. 4:12PM Ausria Vienna Sock.VI AV WBAH Aucion close The chosen price is he price for which he highes number of orders can be execued. The aucion begins a 5:30PM. 5:35PM Bahrain Bahrain Sock.BH BI XBAH Las raded price Las raded price 12:30PM Bangladesh Dhaka Sock.DH BD XDHA Official close The closing price for a securiy shall be deermined as per he weighed average price of all he rades in he las 30 (hiry) minues of rading. If here is no rade during he above specified ime, he weighed average price of maximum 20 (weny) number of rades preceding he above 30 (hiry) minues shall be aken for deerminaion of closing price. If here has been no rade in he securiy during he coninuous rading session, he opening price of he securiy shall be reaed as he closing price. 3:30PM MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 54

55 Index Mehodology MSCI Index Calculaion Mehodology Counry Reuers Code Bloomberg Code Marke Idenifier Code (MIC) Price used Descripion (For more deailed informaion, please conac he relevan exchange) Closing Prices availabiliy (local ime) Belgium Brussels Sock.BR BB XBRU Aucion close The closing price is an aucion price calculaed beween 5:30PM and 5:35PM. I is sill possible o rade a he aucion price beween 5:30PM and 5:40PM. 5:35PM Bosnia and Herzegovina Bosnia and Herzegovina Boswana Sarajevo Sock Banja Luka Sock Boswana Sock.SJ BT XSSE Las raded price Las raded price 1:30PM.BJ BK XBLB Las raded price Las raded price 1:00PM.BT BG XBOT Las raded price Las raded price 3:00PM Brazil Bovespa (Sao Paulo SE).SA BS XBSP Aucion close For all lised companies on he elecronic rading sysem, here is a closing call beween 5.55PM and 6.00PM (4:55PM and 5:00PM*). 6:00PM (5:00PM*) Bulgaria Bulgarian Sock (Sofia).BB BU XBUL Las Traded Price Las Traded Price 2:00PM Canada Torono Sock.TO CT XTSE Marke on Close / Las raded price Marke on Close (MOC) aucion for MOC eligible socks. Las raded price for socks no eligible for he MOC aucion. 4:10PM / 4:00PM Chile Bolsa de Comercio de Saniago.SN CC XSGO VWAP The Official Close is calculaed using a volume weighed average price of he rades in he las en minues of he rading day. For a rade ha occurs wihin he las en minues of rading o be included in he VWAP calculaion, he volume of each rade mus mee a se volume deermined by he exchange a he open of each monh 5:00PM (4:00PM*) China Hong Kong Sock.HK HK XHKG See Hong Kong See Hong Kong See Hong Kong China Shanghai Sock.SS CG XSHG VWAP Volume Weighed Average Price of all rades conduced in he las minue of rading prior o he close (including he las rade). If here is no concluded ransacion on ha day, he previous closing price is used as he day s closing price. 3:05PM China Shenzhen Sock.SZ CS XSHE VWAP Volume Weighed Average Price of all rades conduced in he las minue of rading prior o he close (including he las rade). If here is no concluded ransacion on ha day, he previous closing price is used as he day s closing price. 3:05PM China NYSE.N UN XNYS See USA (NYSE) See USA (NYSE) See USA (NYSE) Colombia Bolsa de Valores de Colombia.CN CX XBOG Las raded price The closing price is he price of he las ransacion which mees a number of shares hreshold beween 9:30AM and 3:00PM The exchange defines he hreshold based on price ranges. 3:00PM MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 55

56 Index Mehodology MSCI Index Calculaion Mehodology Counry Reuers Code Bloomberg Code Marke Idenifier Code (MIC) Price used Descripion (For more deailed informaion, please conac he relevan exchange) Closing Prices availabiliy (local ime) Colombia (US lised Deposiory Receips) NYSE.N UN XNYS see USA (NYSE) see USA (NYSE) see USA (NYSE) Croaia Zagreb Sock.ZA ZA XZAG VWAP The official closing price is he Volume Weighed Average Price of rades hroughou he enire rading day. 4:00PM Croaia Zagreb Vrazdin Segmen.ZA VA XZAG VWAP The official closing price is he Volume Weighed Average Price of rades hroughou he enire rading day. 4:00PM Czech Republic Prague Sock (SPAD).PR CD XPRA Official Close The official closing price is aken from he closing aucion in he coninuous rading marke, which runs from 16:00 16:07PM local ime. If no price is se during he closing aucion, he official closing price will be he las price on he SPAD regime consisen wih he Prague Sock official closing price rules. 5:15PM Denmark Copenhagen Sock.CO DC XCSE Aucion close The closing call aucion will begin when he rading session ends a 4:50PM. I will run unil 5:00PM. The closing price will be generaed in he closing call aucion. If no rades are execued during he closing call aucion, he closing price will correspond o he las ransacion. 5:00PM Egyp Cairo Sock.CA EC XCAI VWAP The closing price of a securiy raded on CASE (Cairo Sock ) is he Volume Weighed Average Price which is equal o he oal value raded of he securiy divided by he oal volume raded of he same securiy, provided ha he securiy rades a leas 100 shares in he daily rading session. In case he securiy rades less han 100 shares, he previous day s closing price is considered o be he official closing price. 2:30PM Esonia Tallinn Sock.TL ET XTAL Aucion Close In he course of he closing aucion, ransacion orders are mached in he order book according o he equilibrium price. The equilibrium price is achieved only if he prices of buy and sell orders enered in he order book are crossing or equal. An aucion is no held unless here are ransacion orders wih crossing prices. 4:00PM Finland Helsinki Sock.HE FH XHEL Aucion close As of Sep , he official closing price is he resul of he closing call which occurs during he las 10 minues of rading. If no rades are mached in he closing call hen he las rade prior o he aucion will be defined as he closing price. 6:30PM France Paris Sock.PA FP XPAR Aucion close The closing price is an aucion price calculaed beween 5:30PM and 5:35PM. I is sill possible o rade a he aucion price beween 5:30PM and 5:40PM. 5:35PM Germany (XETRA) XETRA.DE GY XETR Aucion close The Aucion price is defined during he aucion ha closes he rading session. The chosen price is he price for which he highes number of orders can be execued. 5:35PM Ghana Ghana Sock.GH GN XGHA VWAP The official closing price is he Volume Weighed Average Price of rades hroughou he enire rading day. 3:00PM MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 56

57 Index Mehodology MSCI Index Calculaion Mehodology Counry Reuers Code Bloomberg Code Marke Idenifier Code (MIC) Price used Descripion (For more deailed informaion, please conac he relevan exchange) Closing Prices availabiliy (local ime) Greece Hong Kong Ahens Sock Hong Kong Sock.AT GA XATH Aucion close.hk HK XHKG Aucion Close / Median Price The closing price is deermined hrough a call aucion a he conclusion of he coninuous rading session, whereby he price a which he greaes rading volume is aained is he aucion close price. If here is closing aucion session for he securiy, final Indicaive Equilibrium Price (IEP) would be aken as aucion close price. Oherwise, median price would be applied. The median price is deermined by aking he median of five nominal prices in he las minue of he rading hours o avoid he closing price being biased by one single rade. HKSE akes up o 5 snapshos of he nominal prices a inerval of every 15 seconds saring from 3:59PM, local ime. 5:20PM 4:15PM Hungary Budapes Sock.BU HB XBUD Las raded price Las raded price 5:10PM India The Bombay Sock.BO IB XBOM WAP The Weighed Average Price is defined as he volume weighed average of all orders execued wihin he las 15 minues of he coninuous rading session. If here are no rades during he las 15 minues, hen he las raded price in coninuous rading is aken as he official close. Bombay Sock prices are only used for securiies no raded on he NSE. 3:30PM India Naional Sock of India.NS IS XNSE VWAP The closing price of a securiy is he volume weighed average price of he las half hour (3:00PM-3:30PM). If here are no rades during he las 30 minues, hen he las raded price is aken as he official close. However, in cases where such prices are no available due o he delising from he Naional Sock (NSE), official closing prices from he Bombay Sock will be used. 3:30PM Indonesia Jakara Sock.JK IJ XIDX Las raded price Las raded price 4:15PM Ireland Irish Sock.I ID XDUB Aucion close The session ends wih a 2 minue aucion (beween 4:28PM and 4:30PM). If a securiy is raded during he closing aucion, he aucion price will be he official closing price. If here are rades during he opening aucion or during he coninuous rading period, bu no rades during he closing aucion, he las raded price will be he official closing price. If here are no rades on a paricular day, he previous day s official closing price will be he official closing price. 5.05PM Israel Tel Aviv Sock.TA IT XTAE Aucion Close The closing price will be he one se during he closing call alone, where he volume of he share a he closing call aucion will be a leas: NIS 400,000 in he TA-25 NIS 200,000 in he TA-75 NIS 100,000 in he Mid Cap index If he closing volume is less han menioned above, he price will be se a he weighed average of he laes ransacion prices, including hose execued in he closing call. 4:30PM MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 57

58 Index Mehodology MSCI Index Calculaion Mehodology Counry Reuers Code Bloomberg Code Marke Idenifier Code (MIC) Price used Descripion (For more deailed informaion, please conac he relevan exchange) Closing Prices availabiliy (local ime) Ialy Ialian Sock.MI IM MTAA Aucion close The closing aucion, including a pre-aucion phase ha can end a any ime wihin he las minues of ha acual pre-aucion phase. Closing aucion, comprising he closing phases and validaion, will end a 5.40PM local ime. Where no aucion price is available, he reference price, defined by he exchange as he Volume Weighed average of he las 10% of he day s rading volume, will be used. 5:40PM Jamaica Jamaica Sock.JS JA XJAM Average price The Average Price calculaion is he volumes of a sock purchased a differen prices, divided by he cumulaive volumes of he sock uni ha raded hroughou he day. 1:30PM Japan Nagoya Sock.NG JN XNGO Aucion close The closing price is deermined during a price aucion which akes place a he end of he normal rading day. During his aucion, all orders enered in he individual order book are aggregaed before he execuion, and reaed as simulaneous orders. In accordance wih he principle of price prioriy, each buy order is compared wih sell orders unil is volume and price are mached. By his mehod, a single price is deermined and his price makes up he closing price. In he even of a closing aucion no happening for a paricular day, he las price (Iayose or special quoe mehod) will be used insead. 3:30PM Japan Osaka Securiies.OS JO XOSE Aucion close The closing price is deermined during a price aucion which akes place a he end of he normal rading day. During his aucion, all orders enered in he individual order book are aggregaed before he execuion, and reaed as simulaneous orders. In accordance wih he principle of price prioriy, each buy order is compared wih sell orders unil is volume and price are mached. By his mehod, a single price is deermined and his price makes up he closing price. In he even of a closing aucion no happening for a paricular day, he las price (Iayose or special quoe mehod) will be used insead. 3:10PM Japan Tokyo Sock.T JT XTKS Aucion close The closing price is deermined during a price aucion which akes place a he end of he normal rading day. During his aucion, all orders enered in he individual order book are aggregaed before he execuion, and reaed as simulaneous orders. In accordance wih he principle of price prioriy, each buy order is compared wih sell orders unil is volume and price are mached. By his mehod, a single price is deermined and his price makes up he closing price. In he even of a closing aucion no happening for a paricular day, he las price (Iayose or special quoe mehod) will be used insead. 3:00PM Japan JASDAQ.Q JQ XJAS Aucion close The closing price is deermined during a price aucion which akes place a he end of he normal rading day. During his aucion, all orders enered in he individual order book are aggregaed before he execuion, and reaed as simulaneous orders. In accordance wih he principle of price prioriy, each buy order is compared wih sell orders unil is volume and price are mached. By his mehod, a single price is deermined and his price makes up he closing price. In he even of a closing aucion no happening for a paricular day, he las price (Iayose or special quoe mehod) will be used insead. 3:10PM Jordan Amman Sock.AM JR XAMM Las raded price Las raded price 12:40PM MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 58

59 Index Mehodology MSCI Index Calculaion Mehodology Counry Reuers Code Bloomberg Code Marke Idenifier Code (MIC) Price used Descripion (For more deailed informaion, please conac he relevan exchange) Closing Prices availabiliy (local ime) Kazakhsan Kazakhsan (UK lised Deposiory Receips) Kazakhsan Sock London Sock.KZ KZ XKAZ Las raded price Las raded price 6:00PM.L LI XLON see UK (SETS) see UK (SETS) see UK (SETS) Kenya Nairobi Sock.NR KN XNAI VWAP The closing price of a securiy shall be he Volume Weighed Average Price (VWAP) or ransacions execued during he las hour of rading of he specific securiy. If he securiy does no rade wihin he las hour he closing price will be he average price calculaed for he session. 3:00PM Korea KSE.KS KP XKRX Aucion close The closing price is he price for which he highes number of orders can be execued during he aucion. The aucion sars 10 minues before he official close a 3:00PM. 3:00PM Korea KOSDAQ.KQ KQ XKOS Aucion close The closing price is he price for which he highes number of orders can be execued during he aucion. The aucion sars 10 minues before he official close a 3:00PM. 3:00PM Kuwai Kuwai Sock.KW KK XKUW Aucion close The closing price will be deermined by an aucion held a he close of rading wih a preaucion period (wihou maching) of wo minues, where orders canno be cancelled or modified 12:30PM Lebanon Beiru Sock.BY LB XBEY Las raded price Las raded price 12:30PM Lihuania Vilnius Sock.VL LH XLIT Closing Call Aucion In he course of he closing aucion, ransacion orders are mached in he order book according o he equilibrium price. The equilibrium price is calculaed o be he price where in a paricular Order Book he highes buy price is higher han or equal o he lowes sell price. 4:00PM Malaysia Mauriius The Bursa Malaysia Berhad The Sock of Mauriius.KL MK XKLS Las raded price Las raded price 5:00PM.MZ MP XMAU Las raded price Las raded price 1:30PM Mexico Bolsa Mexicana de Valores.MX MM XMEX Weighed average price Weighed Average Price of he las 20 minues of rading 3:00PM Morocco Bourse De Casablanca.CS MC XCAS Las raded price Las raded price 3:30PM MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 59

60 Index Mehodology MSCI Index Calculaion Mehodology Counry Reuers Code Bloomberg Code Marke Idenifier Code (MIC) Price used Descripion (For more deailed informaion, please conac he relevan exchange) Closing Prices availabiliy (local ime) Neherlands EuroNex Amserdam.AS NA XAMS Aucion price The closing price is an aucion price calculaed beween 5:30PM and 5:35PM. I is sill possible o rade a he aucion price beween 5:30PM and 5:40PM. 5:35PM New Zealand New Zealand Limied.NZ NZ XNZE Las raded price Las raded price 5:00PM Nigeria Nigeria Sock.LG NL XNSA Official Close The official closing price is defined as he las rade wih volume greaer han 50,000 shares. If here are no rades over 50,000 shares during he curren rading day, he previous close is carried over 2:30PM Norway Oslo Sock.OL NO XOSL Aucion close The official closing prices is deermined during a closing aucion which akes place a he end of he coninuous rading beween 16:20 and 16:30. When he closing aucion for a paricular securiy canno be compleed, he las raded price before he sar of he aucion will be used. 5:30PM Oman Oman Musca.OM OM XMUS VWAP The closing price is considered o be he volume weighed average price. The closing price will no change unless a minimum number of securiies are raded. This minimum is 500 Shares for securiies lised in he Regular & Parallel markes and 2000 for securiies lised in he Third marke. In case raded securiies do no exceed he specified hreshold for heir marke, he closing price will equal he previous close. 1:00PM Pakisan Karachi Sock.KA PK XKAR Official Close The closing price is deermined by he volume weighed average price of he las 30 minues rades of ha securiy for he day. In case of no rading in a paricular securiy during he las 30 minues of he day, he closing price is he volume weighed average price for he las raded 30 minues of ha securiy. 2:15PM (Mon- Thu), 4:00PM (Fri) Peru Bolsa De Valores de Lima.LM PE XLIM Las raded price Las round lo regular rade 4:00PM Peru (US lised Deposiory Receips) NYSE.N UN XNYS see USA (NYSE) see USA (NYSE) see USA (NYSE) Philippines Philippine Sock.PS PM XPHS Las raded price Las raded price 1:00PM Poland Warsaw Sock.WA PW XWAR Aucion Close The closing price is deermined in an aucion procedure in which he closing price will be based on orders submied during he closing phase. If no orders are placed during he closing phase hen he closing price will be ha of he las ransacion. 5:10PM Porugal EuroNex Lisbon.LS PL XLIS Aucion close The closing price is an aucion price calculaed beween 5:30PM and 5:35PM. I is sill possible o rade a he aucion price beween 5:30PM and 5:40PM. 5:35PM Qaar Doha Securiies Marke.QA QD DSMD Las raded price Las raded price 12:30PM MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 60

61 Index Mehodology MSCI Index Calculaion Mehodology Counry Reuers Code Bloomberg Code Marke Idenifier Code (MIC) Price used Descripion (For more deailed informaion, please conac he relevan exchange) Closing Prices availabiliy (local ime) Romania Russia Russia (US lised Deposiory Receips) Russia (UK lised Deposiory Receips) Buchares Sock Moscow Inerbank Currency (MICEX) New York Sock London Sock.BX RO XBSE Las raded price Las Traded Price 4:30PM.MM RX XMIC Las raded price Las raded price 6:45PM.N UN XNYS see USA (NYSE) see USA (NYSE) see USA (NYSE).L LI XLON see UK (SETS) see UK (SETS) see UK (SETS) Serbia Belgrade SE.BEL SG XBEL VWAP The closing price is considered o be he volume weighed average price. 2:00PM Singapore Singapore Securiies Trading.SI SP XSES Aucion close A 5:00PM, all unmached orders are carried forward o Pre-Close Rouine, which runs for 6 minues and consiss of a Pre-Close Period and a Non-Cancel Period. Similarly, orders can be enered, amended or cancelled during he Pre-Close Period (5:00PM 5:05PM). During he Non-Cancel Period (5:05PM 5:06PM), orders are mached and execued a a Closing price compued for he day, while unmached orders will become void. 5:06PM Slovenia Ljubljana Sock.LJ SV XLJU Official Close The Official Closing Price is defined as he Aucion Price formed during he Closing Aucion. If here are no rades execued for a given securiy during he Closing Aucion, he Closing Price will be he las rade of he day. If here are no rades execued in a given securiy on a given day, he closing price for he day will be he closing price of he previous rading day. 1:00PM Souh Africa Johannesburg Sock.J SJ XJSE Las raded price / VWAP The closing prices on securiies raded on he Souh Africa will be calculaed based on he price a which rades occurred in a closing execuion. In his closing execuion, he las raded price will be he official closing price, unless here is a higher bid price or a lower ask offer, which will hen be used as he closing price. In he even ha here is no closing execuion, hen a Volume Weighed Average Price (VWAP) aken over he las 10 minues of rading leading up o he closing aucion is used. 5:05PM Spain Mercado Coninuo CATS.MC SQ XMCE Aucion price The session ends wih a 5 minue aucion (beween 5:30PM and 5:35PM) and a random closing of 30 seconds. The resuling aucion price will be he session s Closing price. In case an Aucion price does no exis, he closing price will be he price of he las 500 raded unis closes o heir weighed average. If wo prices have he same difference wih respec o his weighed price, he price will be he las one execued. If 500 unis have no been raded, he closing price will be he price of he previous session. 5:35PM MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 61

62 Index Mehodology MSCI Index Calculaion Mehodology Counry Reuers Code Bloomberg Code Marke Idenifier Code (MIC) Price used Descripion (For more deailed informaion, please conac he relevan exchange) Closing Prices availabiliy (local ime) Sri Lanka Colombo Sock.CM SL XCOL VWAP Closing price is defined as he Volume Weighed Average Price (VWAP) of rades execued during he las one hour of rading of he specific securiy. If he securiy does no rade during such one hour he closing price will be he VWAP calculaed for he period of ime i has raded. 2:30PM Sweden Sockholm Sock.ST SS XSTO Aucion price The official closing price is he resul of he closing call which occurs during he las 10 minues of rading. If no rades are mached in he closing call hen he las rade prior o he aucion will be defined as he closing price. 5:30PM Swizerland The Swiss (SWX) Vir-X.S.VX SE VX XSWX XVTX Aucion price Closing price is he resul of he closing aucion (he aucion pre-opening saring a 5:20PM, and he aucion being run a 5:30PM). If no price updae occurs during ha aucion, he las paid price on he exchange will represen he reference price. If here is no paid price for he given securiy ha day, he reference price will be calculaed by eiher aking he bid-price, if he bid is higher han he reference price, or i will ake he ask-price if he ask is lower han he reference price. 5:30PM Taiwan Taiwan Sock.TW TT XTAI Aucion price The closing price is deermined by a closing call aucion. The will accumulae orders for 5 minues (from 1:25 p.m. o 1:30 p.m.) before he closing call aucion. If here is no closing aucion for a securiy, he las raded price will be used. 1:30PM Thailand The Sock Of Thailand.BK TB XBKK Aucion price The closing price is defined by using he random call aucion mehod. The closing aucion can ake place anyime beween 4:35PM and 4:40PM local ime. This mehod apply o securiies rade on boh main board and foreign board of sock exchange of Thailand. 4:40PM Trinidad and Tobago Trinidad and Tobago Sock.JM TP XTRN Official Close The closing price is he Volume Weighed Average Price, calculaed as he oal value of shares raded in he day divided by he oal volume of shares raded in he same rading day. If a share does no rade in a rading day, he closing price will be he same as he closing price of he previous day. 2:00PM Tunisia Tunis Sock.TN TU XTUN Las Trade Las raded price 11:30AM Turkey Isanbul Sock.IS TI XIST Aucion price The closing price is deermined by maching all unmached orders in he regular session and he new orders wihou maching in a pre-deermined period of ime wih he price leading o he maximum amoun of rading volume. If no closing price is provided on a rading day, he closing price of he previous day is used for index calculaion. 5:30PM Ukraine PFTS.PFT UZ PFTS Las raded price Las raded price 5:45PM Ukraine Ukrainian.UAX UK UKEX Las raded price Las raded price 5:30PM Unied Arab Emiraes Abu Dhabi Securiies Marke.AD DH XADS VWAP The closing price is he value weighed average of he sock price for he day. There is currenly no minimum volume resricion. 2:00PM MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 62

63 Index Mehodology MSCI Index Calculaion Mehodology Counry Reuers Code Bloomberg Code Marke Idenifier Code (MIC) Price used Descripion (For more deailed informaion, please conac he relevan exchange) Closing Prices availabiliy (local ime) Unied Arab Emiraes Unied Arab Emiraes Dubai Sock Dubai Inernaional Financial.DU DB XDFM Las raded price Las raded price 2:00PM.DI DU DIFX Las raded price Las raded price 5:00PM Unied Kingdom London Sock.L LN XLON Aucion price For SETS, he closing rade price is he uncrossing rade price a which orders execue during an aucion, or a Volume Weighed Average Price (VWAP), or he las auomaic rade price. If a closing aucion fails o ake place, hen he VWAP of he las 10 minues of rading will be used o se he closing price. If however, no rading has occurred during he VWAP period, hen he las auomaic rade price will be used as he official closing price. 4:35PM Unied Kingdom London Sock.L LN XLON Mid price For SEAQ, SEATS and AIM securiies he closing price is he mid price of he bes bid and bes offer calculaed from marke maker quoes a he end of he mandaory quoe period. 4:35PM USA NASDAQ Capial Marke.OQ UR XNCM NOCP The NOCP is eiher deermined using he normalized price of he las rade repored o NASDAQ's proprieary rade reporing sysem or, for seleced securiies, using he newly inroduced NASDAQ Closing Cross. The normalized NASDAQ Official Closing Price (NOCP) adjuss repored rade price ouside he closing bid-ask spread, "moving up" o he bid whenever he las sale is below he bid or "moving down" o he ask whenever he las sale is above he ask. 4:02PM USA NASDAQ Global Marke.OQ UQ XNAS NOCP The NOCP is eiher deermined using he normalized price of he las rade repored o NASDAQ's proprieary rade reporing sysem or, for seleced securiies, using he newly inroduced NASDAQ Closing Cross. The normalized NASDAQ Official Closing Price (NOCP) adjuss repored rade price ouside he closing bid-ask spread, "moving up" o he bid whenever he las sale is below he bid or "moving down" o he ask whenever he las sale is above he ask. 4:02PM USA NASDAQ Global Selec Marke.OQ UW XNGS NOCP The NOCP is eiher deermined using he normalized price of he las rade repored o NASDAQ's proprieary rade reporing sysem or, for seleced securiies, using he newly inroduced NASDAQ Closing Cross. The normalized NASDAQ Official Closing Price (NOCP) adjuss repored rade price ouside he closing bid-ask spread, "moving up" o he bid whenever he las sale is below he bid or "moving down" o he ask whenever he las sale is above he ask. 4:02PM USA NYSE.N UN XNYS Las raded price Las raded price 4:00PM USA AMEX.A UA XASE Las raded price Las raded price 4:00PM Vienam Ho Chi Minh Securiies Trading Cener.HN VM XSTC Las raded price Las raded price 11:00AM MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 63

64 Index Mehodology MSCI Index Calculaion Mehodology Counry Reuers Code Bloomberg Code Marke Idenifier Code (MIC) Price used Descripion (For more deailed informaion, please conac he relevan exchange) Closing Prices availabiliy (local ime) Vienam Zimbabwe Hanoi Securiies Trading Cener Zimbabwe Sock.HM VH HSTC Las raded price Las raded price 11:00AM,ZI ZH XZIM Las raded price Las raded price 12:30PM * Refers o price availabiliy imes during DST period in he US. Prices availabiliy shown in his able refers o he ime prices are normally available. I considers changes due o DST periods bu no oher facors such as Ramadan period, changes in opening hours on a day prior a holiday, ec. In case of marke closure or if a securiy does no rade on a specific day or a specific period, MSCI carries forward previous day prices (or laes available closing price) o calculae is indices. Special noe for counries open on Saurday and/or Sunday: In he even ha a securiy does no rade on a Monday bu was raded on he previous Saurday and/or Sunday, he laes price available during he weekend will be used for he Monday index calculaion. In addiion, a securiy ha does no rade on Monday bu raded ex corporae even during he previous weekend will have he even refleced in he Monday index calculaion. Special noe for Japanese securiies: Japanese companies can be lised simulaneously on more han one sock exchange in Japan. A company may apply for delising from one sock exchange while remaining lised in he oher sock exchange(s). For such delising, Japanese sock exchanges generally give one monh noice prior o he las rading dae of he securiy. Should such delising involve a change in primary exchange and/or rigger a change in he price source, MSCI will source he price of he securiy from he new primary exchange wo weeks afer an announcemen of delising from he sock exchange. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 64

65 ACWI (former ACWIF) EM (former EMF) THE WORLD INDEX (3) EAFE EUROPE EMU AC EUROPE & MIDDLE EAST AC ASIA PACIFIC AC AMERICAS GCC COUNTRIES ex SA ARABIAN MARKETS ex SA FM (FRONTIER MARKETS) Index Mehodology MSCI Index Calculaion Mehodology Appendix VIII: Counry Composiion of MSCI Seleced Regional Indices MSCI CODE INDEX NAME ARGENTINA 1-Jan Jan-1988 o Jan Jun-2009 o 29-May- 29-May-2009 o 29-May AUSTRALIA 1-Jan Jan Jan Jan AUSTRIA 1-Jan Jan Jan Jan Jan Jan BAHRAIN Jun Jun Jun BANGLADESH May BELGIUM 1-Jan Jan Jan Jan Jan Jan BOSNIA AND HERZEGOVINA BOTSWANA BRAZIL 1-Jan Jan Jan MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 65

66 ACWI (former ACWIF) EM (former EMF) THE WORLD INDEX (3) EAFE EUROPE EMU AC EUROPE & MIDDLE EAST AC ASIA PACIFIC AC AMERICAS GCC COUNTRIES ex SA ARABIAN MARKETS ex SA FM (FRONTIER MARKETS) Index Mehodology MSCI Index Calculaion Mehodology MSCI CODE INDEX NAME BRAZIL FORMER BULGARIA Jun CANADA (3) 1-Jan Jan Jan CHILE 1-Jan Jan Jan CHINA 3-Sep Sep Sep COLOMBIA 2-Feb Feb Feb CROATIA Jun CZECH REPUBLIC 3-Sep Sep Sep DENMARK 1-Jan Jan Jan Jan Jan EGYPT 1-Jun Jun Jun ESTONIA Jun FINLAND 18-Jan Jan Jan Jan Jan Jan FINLAND FREE 1-Jan o 17-Jan MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 66

67 ACWI (former ACWIF) EM (former EMF) THE WORLD INDEX (3) EAFE EUROPE EMU AC EUROPE & MIDDLE EAST AC ASIA PACIFIC AC AMERICAS GCC COUNTRIES ex SA ARABIAN MARKETS ex SA FM (FRONTIER MARKETS) Index Mehodology MSCI Index Calculaion Mehodology MSCI CODE INDEX NAME FRANCE 1-Jan Jan Jan Jan Jan Jan GERMANY 1-Jan Jan Jan Jan Jan Jan GHANA GREECE 1-Jan Jan-1988 o 1-Jun Jun Jun Jun Jan May HONG KONG 1-Jan Dec Dec Jan HUNGARY 3-Sep Sep Sep INDIA 2-Feb Feb Feb INDONESIA FORMER 1-Sep Sep-1989 o Sep o 1-Jun- 1-Jun-1997 o 1-Jun INDONESIA 2-Jun Jun Jun IRELAND (2) 1-Jan May May- 3-May May Jan ISRAEL 2-Feb Mar-1995 o 27-May May Mar May MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 67

68 ACWI (former ACWIF) EM (former EMF) THE WORLD INDEX (3) EAFE EUROPE EMU AC EUROPE & MIDDLE EAST AC ASIA PACIFIC AC AMERICAS GCC COUNTRIES ex SA ARABIAN MARKETS ex SA FM (FRONTIER MARKETS) Index Mehodology MSCI Index Calculaion Mehodology MSCI CODE INDEX NAME ITALY 1-Jan Jan Jan Jan Jan Jan JAMAICA JAPAN 1-Jan Jan Jan Jan JORDAN 1-Jan Jan-1988 o Jan-1988 o Jun Nov-2008 o 25-Nov- 25-Nov Nov KAZAKHSTAN Dec KENYA Jun KOREA 1-Sep Sep Sep KOREA (FORMER) (7) 7-Jan Jan-1992 o Jan o 31-Aug- 31-Aug-1998 o 31-Aug KUWAIT Jun Jun Jun LEBANON Jun Jun LITHUANIA Nov-2008 MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 68

69 ACWI (former ACWIF) EM (former EMF) THE WORLD INDEX (3) EAFE EUROPE EMU AC EUROPE & MIDDLE EAST AC ASIA PACIFIC AC AMERICAS GCC COUNTRIES ex SA ARABIAN MARKETS ex SA FM (FRONTIER MARKETS) Index Mehodology MSCI Index Calculaion Mehodology MSCI CODE INDEX NAME LUXEMBOURG (2) 1-Jan-1988 o 30-Sep Jan-1988 o 30-Sep MALAYSIA 2-Jun Jun-1997 o Jun o 30-Nov- 30-Nov-1998 o 30-Nov & 1- & 1-Jun & 1- Jun-2000 Jun MALAYSIA FORMER 1-Jan Jan-1988 o 3-May-1993 o 3-May Jan o 1-Jun- 1-Jun Sep o 30- o 1-Jun Sep MAURITIUS Jun MEXICO 1-Jan Jan Jan MEXICO FORMER Nov-1981 o Dec MOROCCO 1-Jun Jun Jun NETHERLANDS 1-Jan Jan Jan Jan Jan Jan MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 69

70 ACWI (former ACWIF) EM (former EMF) THE WORLD INDEX (3) EAFE EUROPE EMU AC EUROPE & MIDDLE EAST AC ASIA PACIFIC AC AMERICAS GCC COUNTRIES ex SA ARABIAN MARKETS ex SA FM (FRONTIER MARKETS) Index Mehodology MSCI Index Calculaion Mehodology MSCI CODE INDEX NAME NEW ZEALAND 1-Jan Jan Jan Jan NIGERIA Jun NORWAY 1-Feb Jan Jan Jan Jan NORWAY FREE (5) 1-Jan o 31-Jan OMAN Jun Jun Jun PAKISTAN 2-Feb Feb-1994 o Feb Jun Dec-2008 o o 31-Dec- 31-Dec PERU 2-Feb Feb Feb PHILIPPINES 1-Jan Jan Jan PHILIPPINES FORMER POLAND 2-Mar Mar Mar PORTUGAL 1-Jan Jan-1988 o 01-Dec Dec- 01-Dec- 01-Dec- 1-Jan Nov MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 70

71 ACWI (former ACWIF) EM (former EMF) THE WORLD INDEX (3) EAFE EUROPE EMU AC EUROPE & MIDDLE EAST AC ASIA PACIFIC AC AMERICAS GCC COUNTRIES ex SA ARABIAN MARKETS ex SA FM (FRONTIER MARKETS) Index Mehodology MSCI Index Calculaion Mehodology MSCI CODE INDEX NAME QATAR Jun Jun Jun ROMANIA Dec RUSSIA 01-Dec Dec Dec SERBIA Nov SINGAPORE (SINGAPORE/MALAYSIA) 1-Dec Dec Dec Dec SINGAPORE (FORMER) 1-Jan-1988 o 30-Apr Jan-1988 o 30-Apr SINGAPORE FREE (4) (6) 3-May-1993 o 30-Nov May-1993 o 30-Nov SLOVENIA Jun SOUTH AFRICA 2-Mar Mar SOUTH AFRICAN GOLD 1-Jan Dec-1974 o MINES (1) o 1-Mar- 1-Mar-1995 MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 71

72 ACWI (former ACWIF) EM (former EMF) THE WORLD INDEX (3) EAFE EUROPE EMU AC EUROPE & MIDDLE EAST AC ASIA PACIFIC AC AMERICAS GCC COUNTRIES ex SA ARABIAN MARKETS ex SA FM (FRONTIER MARKETS) Index Mehodology MSCI Index Calculaion Mehodology MSCI CODE INDEX NAME SPAIN 1-Jan Jan Jan Jan Jan Jan SRI LANKA 2-Feb Feb-1994 o Feb Dec-2003 o 31-May- 31-May-2001 o 31-May SWEDEN 18-Jan Jan Jan Jan Jan SWEDEN FREE 1-Jan o 17-Jan SWITZERLAND 16-Jul Jan Jan Jan Jan SWITZERLAND FREE 1-Jan o 15-Jul TAIWAN 3-Jun Jun Jun TAIWAN FORMER (8) 3-Sep Sep-1996 o Sep o 2-Jun- 2-Jun-2002 o 2-Jun- MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 72

73 ACWI (former ACWIF) EM (former EMF) THE WORLD INDEX (3) EAFE EUROPE EMU AC EUROPE & MIDDLE EAST AC ASIA PACIFIC AC AMERICAS GCC COUNTRIES ex SA ARABIAN MARKETS ex SA FM (FRONTIER MARKETS) Index Mehodology MSCI Index Calculaion Mehodology MSCI CODE INDEX NAME THAILAND FORMER 1-Jan Jan-1988 o Jan o 1-Jun- 1-Jun-1997 o 1-Jun THAILAND 2-Jun Jun Jun TRINIDAD AND TOBAGO Jun-2009 o 31-May TUNISIA Jun Jun TURKEY 1-Sep Sep Oc UKRAINE Jun UNITED ARAB EMIRATES Jun Jun Jun UNITED KINGDOM 1-Jan Jan Jan Jan Jan USA (3) 1-Jan Jan Jan VENEZUELA 2-Feb Feb-1994 o Feb o 31-May- 31-May-2006 o 31-May- MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 73

74 ACWI (former ACWIF) EM (former EMF) THE WORLD INDEX (3) EAFE EUROPE EMU AC EUROPE & MIDDLE EAST AC ASIA PACIFIC AC AMERICAS GCC COUNTRIES ex SA ARABIAN MARKETS ex SA FM (FRONTIER MARKETS) Index Mehodology MSCI Index Calculaion Mehodology MSCI CODE INDEX NAME VENEZUELA (FORMER) VIETNAM Dec ZIMBABWE (1) Excluded from all dividends reinvesed indices. (2) Luxembourg has been excluded from dividend reinvesed indices since 01-Jan-1993 and Ireland prior o 03-May (3) Unil 29-Nov-1974, he World Index was a weighed arihmeic average of he MSCI EAFE, of he NYSE and he TSE indices. (4) Included in Far Eas Free, Pacific Free and Pacific Free ex Japan since 1-Jan-1988 Those indices were back-calculaed unil 1-Jan-1988 in 2003 when Singapore Free was launched (5) Resricions appeared since 1-Dec (6) No more foreign quoaion since 1-Dec Prices aken from he foreign board beween 4-May-1988 and 30-Nov (7) Korea was included in he free indices a 20% of is marke cap beween 7-Jan-92 and 2-Sep-96 and a 50% beween 3-Sep-96 and 31-Aug-98. (8) Taiwan was included in he free indices a 50% of is marke cap beween 3-Sep-96 and 31-May-00, a 65% beween 1-Jun-00 and 30-Nov-00 and a 80% beween 1- Dec-00 and 2-Dec-01. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 74

75 Index Mehodology MSCI Index Calculaion Mehodology Appendix IX: MSCI Real Time Indices MSCI currenly calculaes price, ne and gross varians for approximaely 9,000 equiy based indices in real ime as well as he FX Hedge, Currency, Shor/Leveraged and Daily Hedged indices. All MSCI Real Time Indices are calculaed based on he corresponding end-of-day index calculaion mehodologies. MSCI disseminaes real ime indices every 60 seconds or 15 seconds depending on he index ype and is use in he markeplace. On a daily basis for each real ime index, MSCI will provide an Index Open value (IO) which will occur when he firs securiy belonging o ha index rades, an Index Updae value (IU) which will occur hroughou he day afer he Index Open has been sen and an Index Close value (IC) which will be sen ou as he las real ime level and indicae he real ime closing value. 7 Real Time Inraday Foreign Raes vs. Real Time Close Foreign Raes MSCI Real Time Indices use he Reuers Muli Conribuor FX Raes for all Index Open and Index Updaes and MSCI applies he WM 4PM London ime Closing Mid Raes for he Index Close. Mono-currency indices which are indices ha have exposure o a single currency will have heir Index Close value sen shorly afer he underlying sock exchange(s) close and do no require he WM 4PM London closing rae o calculae he Index Close. Muli-currency indices (which have exposure o muliple currencies) require he WM 4PM London closing rae o calculae he Index Close. Muli-currency indices whose underlying sock exchanges close before he WM 4PM London raes are received will have heir las Index Updae sen shorly afer he las underlying sock exchange closes and hen will have heir Index Close sen when he WM 4PM London Close is received. Muli-currency indices whose underlying sock exchanges close afer he WM 4PM London raes are received will coninue o use he Reuers Muli Conribuor FX raes for all Index Updaes unil he las underlying sock exchange closes and he Index Close is sen using he WM 4PM London Close. Real Time Inraday Securiy Pricing vs. Real Time Close Securiy Pricing Index Open and Index Updae calculaions use he las raded price available and he Index Close uses he official closing price or las rade as described in he MSCI Closing Prices Policy found in Appendix VII of his documen. Price filering MSCI has various price filers se in place o ensure ha high qualiy prices are used in MSCI s Real Time index calculaions. MSCI s price marke filers exclude rades such as block sales and odd los among 7 The real ime Index Close could be differen from he index value for he same index delivered in MSCI s end-ofday produc files due o manual daa updaes implemened during he end-of-day calculaion process. The official closing level of any MSCI index is he level disribued in MSCI s end-of-day produc files. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 75

76 Index Mehodology MSCI Index Calculaion Mehodology ohers and MSCI s price hreshold filers ensure ha price flucuaions above or below a cerain hreshold are checked prior o being included in he calculaion of he MSCI Real Time Indices. Real Time Cash Dividend Reinvesmen Consisen wih he Daily Toal Reurn (DTR) end-of-day index calculaion mehodology, MSCI s real ime DTR calculaion will reinves a dividend only if he securiy paying he dividend rades on he ex-dae. The dividend will be refleced in real ime index calculaions as soon as he securiy paying he dividend rades in real ime. If he securiy does no rade on he ex-dae or on he scheduled reinvesmen dae, he dividend reinvesmen will be posponed o he day when he securiy resumes rading. Lae dividends or correcions will be reaed in real ime calculaions consisen wih he end-of-day DTR index calculaion mehodology. For more deails on MSCI s DTR mehodology please refer o he Secion 2. General Announcemen Policy for Dividends Upcoming dividends o be reinvesed in he MSCI DTR Indices are announced prior o heir reinvesmen in he MSCI Securiy Advanced Dividend File. Lae dividends and dividend correcions ha are received afer heir ex-dae are reinvesed or correced in he MSCI DTR Indices on he nex business day following he recepion dae from he daa sources. Therefore, here is a leas one day s noice hrough he MSCI Securiy Advanced Dividend File prior o heir reinvesmen and / or correcion. In excepional cases, MSCI will announce he reamen of dividends ha are no pre-announced in he MSCI Securiy Advanced Dividend File and are received by MSCI during marke hours on heir ex-dae hrough an inraday opion announcemen. Inraday Price Adjusmen Facor (PAF) Announcemens MSCI sends an Opening and Closing PAF announcemen for all Real Time consiuens ha have a corporae even effecive involving he calculaion of a heo-cum PAF such as a special cash dividend, capial repaymen or in general when a shareholder receives somehing oher han he underlying asse. The opening PAF announcemen uses he opening price of he securiy and is used for Index Updae calculaions hroughou he day. The opening PAF value is sen shorly afer he firs rade of he securiy having he corporae even and does no change hroughou he day based on inraday marke prices. The closing PAF announcemen uses he closing price of he securiy having he corporae even and is used in he Index Close calculaion. The closing PAF value is sen shorly afer he closing price of he securiy having he corporae even is received. For more informaion on corporae evens, please see he MSCI Corporae Even Mehodology documen. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 76

77 Index Mehodology MSCI Index Calculaion Mehodology Appendix X: Index Calculaion Mehodology Using Index Divisors Inroducion An index level is ypically calculaed by muliplying he weighed average performance of he index consiuens by he previous index level. This secion presens an alernaive way of calculaing an index level (which is similar o he radiional way of valuing a porfolio), by simply muliplying asse consiuen quaniies by curren prices, and adding up he resuls. The index divisor concep, inroduced below, is cenral o his alernaive index calculaion. When calculaing a securiy s performance on days wih cerain corporae evens, a price adjusmen facor (PAF) is needed o ensure hisorical price comparabiliy. This facor ofen accouns for asses ha conribue o he index performance for a day, such as righs offerings, spun-off companies or cash. In he alernaive index calculaion mehodology described herein, he PAF is replaced by he inerim consiuens, which explicily capure he impac of corporae evens. Definiions Index Divisor () The index divisor for a day is defined as he raio of he iniial marke capializaion and he previous index level. IndexIniialMarkeCap IndexDivisor IndexLevel 1 The index divisor does no change unless he index composiion changes, e.g., in cases of corporae evens and index addiions / deleions where a change in index marke capializaion is no due o performance and does no correspond o a change in he index level. The index divisor for day is known afer he close of day -1 (he iniial index marke capializaion is calculaed using prices and exchange raes as of day -1 bu consiuens as of ). The index divisor can be calculaed in any currency: boh he index iniial marke capializaion and he previous index level need o be expressed in ha currency. Index Uni The index uni describes he se of index consiuens and corresponding quaniies of oal value equal o he index level. I can be derived by dividing he oal index quaniies by he index divisor. Inraday Index Number of Shares () The inraday index number of shares is he number of shares of a securiy aken ino accoun for he index calculaion and valid boh inraday and a he close of day (before any changes due o corporae evens or index reviews). Noe ha i is adjused by he various index inclusion facors, such as he MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 77

78 Index Mehodology MSCI Index Calculaion Mehodology Foreign Inclusion Facor (FIF) 8, for day. Also, noe ha i can be differen from he number of shares used for he index calculaion described in Secion 1.1 (which is an end of day number of shares) in cases of corporae evens. Inraday Index Uni Number of Shares () The inraday index uni number of shares is he inraday index number of shares expressed for one index uni. I is defined as he raio of he inraday index number of shares and he index divisor. InradayIn dexuninumberofshares InradayIndexNumberOfShares IndexDivisor End of Day Index Number of Shares () The end of day index number of shares is he number of shares of a securiy aken ino accoun for he index calculaion for he nex day (+1) bu expressed on a pre +1 evens basis (for example, if a company has a sock spli on +1, he end of day index number of shares for day will be on a pre-spli basis). This number of shares, however, akes ino accoun changes due o corporae evens effecive as of he close of and is adjused by he various index inclusion facors such as he Foreign Inclusion Facor (FIF) for day +1. Noe ha i is based on he same number of shares as he one used for he index calculaion on +1 (EndOfDayIndexNumberOfShares ) and described in Secion 1.1. End of Day Index Uni Number of Shares () The end of day index uni number of shares is he end of day index number of shares expressed for one index uni. I is defined as he raio of he end of day index number of shares and he index divisor for +1. EndOfDayIndexUniNumberOfShares EndOfDayIndexNumberOfShares IndexDivisor The index uni composiion changes from he inraday index uni number of shares o he end of day index uni number of shares as of he close of day, i.e., he index uni number of shares change is calculaed as 1 IndexUniNumberOfSharesChange EndOfDayIndexUniNumberOfShares InradayIndexUniNumberOfShares 8 Index inclusion facors encompass any inclusion facors specific o a given index, for example, he Value Inclusion Facor (VIF) for a Value index. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 78

79 Index Mehodology MSCI Index Calculaion Mehodology Index Dividend Poins Index dividend poins express dividends paid in an index uni for a given day. They represen dividends as a fracion of he index level iself. To provide advance noice, MSCI calculaes boh he preliminary index dividend poins on -1 for ha use exchange raes as of -1 and he final index dividend poins on using exchange raes and capuring he effec of he inraday dividend changes on, if any. Boh gross and ne index dividend poins can be calculaed for a price index varian: hey express he amoun of dividends paid by a price index uni. Ne (gross) index dividend poins can be calculaed for a ne (gross) index varian: hey express he amoun of dividends reinvesed in he ne (gross) index uni. PrelimDividendPoins FinalDividendPoins DTRIndexNumberOfShares IndexDivisor * DividendPerShare / FXrae 1 DTRIndexNumberOfShares * DividendPerShare / FXrae IndexDivisor Dividend poins can be aggregaed a index level. IndexPrelimDividendPoins IndexFinalDividendPoins PrelimDivd endpoins FinalDivde ndpoins Pre-open Price The pre-open price of a securiy on day is is closing price of day -1 heoreically adjused for he effecs of corporae evens affecing he securiy ex on day. Calculaing he Index Index Calculaion Formula The index uni value serves o calculae he index level. The equaion below is valid boh inraday and as of he close. IndexLevel InradayIndexUniNumberOfShares i, * Price i, / FXrae i, ii MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 79

80 Index Mehodology MSCI Index Calculaion Mehodology where Price i, is replaced by he pre-open price for he consiuens ha have no ye raded on and I is he index uni consiuen se. The previous index level can also be recalculaed by using pre-open prices and exchange raes of he previous day. IndexLevel 1 InradayIndexUniNumberOfShares i, * PreOpenPricei, / FXrae i, 1 ii Index Calculaion Example Consider he MSCI Ausria index uni on Ocober 27, 2009 described below. Is composiion is fully known afer he close of Ocober 26, 2009 and is described by he consiuen lis and he inraday index uni number of shares (column F) calculaed as he raio of he inraday index number of shares and he index divisor. To calculae he index level on Ocober 27, 2009 (inraday or close), curren prices and exchange raes (columns I and J respecively) are used for each consiuen, and he marke capializaion of he consiuen in he index uni (column K) is obained by muliplying he inraday index uni NOS by he prices and dividing by he exchange rae. The sum of he column K gives he value of he index uni, which is equal o he index level. Divisor (As of Dae) 21,413,261 A B C D E F I J K Calculaion Dae As of Dae Securiy Name Idx Incl Flag (as of dae) Inraday Index NOS MM Inraday Idx Uni NOS Price (As of Dae) FX (As of Dae) Mcap in Idx Uni D*F*I/J 10/26/ /27/2009 ERSTE GROUP BANK /26/ /27/2009 OMV AG /26/ /27/2009 TELEKOM AUSTRIA /26/ /27/2009 VOESTALPINE /26/ /27/2009 VERBUND OESTERR ELEK A /26/ /27/2009 RAIFFEISEN INT'L BANK /26/ /27/2009 VIENNA INSURANCE GROUP * Columns A-F come from he MSCI Marke Open Index File The file will be disribued afer he close of Ocober 26 for use on Ocober 27 Index (USD) 1, MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 80

81 Index Mehodology MSCI Index Calculaion Mehodology Calculaing Index Uni Changes Due o Corporae Evens and Index Rebalancings As corporae evens and rebalancings occur, he index uni composiion can change. All adjusmens are based on closing prices. To ge he index uni adjusmen, he new index divisor needs o be calculaed. Dividing he end of day index number of shares by he new index divisor resuls in he end of day index uni number of shares. Given he equaions IndexDivisor IndexIniialMarkeCap 1 1 IndexLevel (coming from he divisor definiion), and IndexAdjusedMarkeCap IndexDivis or IndexLevel (coming from he divisor definiion and he fac he index level is proporional o he index marke capializaion on any given day), a pracical way of calculaing he new divisor is IndexDivisor IndexIniialMarkeCap 1 1 IndexDivisor * IndexAdjusedMarkeCap. As an example, consider he MSCI Brazil index uni on Ocober 21, 2009 described below. Effecive Ocober 22, 2009, a new securiy, BC SANTANDER BRASIL UNIT will be added o he index. Hence, he index divisor and he index uni composiion will change as of he close of Ocober 21, A new index divisor (for Ocober 22, 2009) is calculaed by muliplying he curren divisor (for Ocober 21, 2009) by he sum of he nex day consiuens iniial marke capializaions (column M) and dividing by he curren index marke capializaion (sum of column L). The new end of day index uni number of shares (column N) is calculaed by dividing he end of day index number of shares (column H) by he new divisor. The index uni composiion is adjused by he difference beween he end of day index uni number of shares and inraday index uni number of shares (column O): in his case, 0.16 shares of BC SANTANDER BRASIL UNIT are added o he index uni by decreasing he index uni number of shares of all he oher index consiuens. Divisor (As of Dae) 142,324,185 Divisor (As of Dae + 1) 144,319,620 A B C D E F G H I J L M N O Calculaion Dae As of Dae Securiy Name Idx Incl Flag (as of dae) Inraday Index NOS MM Inraday Idx Uni NOS Idx Incl Flag (as of dae + 1) End of Day Index NOS MM Price (As of Dae) 10/20/ /21/2009 CSN SIDERURGICA NAC'L ON ,519 14, * Subse of he MSCI Brazil Index Uni FX (As of Dae) Mcap (As of Dae) D*E*I/J Iniial Mcap (As of Dae + 1) G*H*I/J End of Day Idx Uni NOS 10/20/ /21/2009 BC SANTANDER BRASIL UNIT , /20/ /21/2009 PETROBRAS PN 1 3, , ,538 66, /20/ /21/2009 PETROBRAS ON 1 2, , ,582 56, /20/ /21/2009 VALE PNA 1 2, , ,549 49, /20/ /21/2009 ITAU UNIBANCO PN 1 2, , ,608 42, /20/ /21/2009 VALE ON 1 1, , ,272 38, /20/ /21/2009 BANCO BRADESCO PN 1 1, , ,849 31, Idx Uni NOS Change (N-F) MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 81

82 Index Mehodology MSCI Index Calculaion Mehodology Inerim Consiuens 9 On days wih cerain corporae evens, he index can hold consiuens ha influence he performance for a day. When calculaing he index performance using price adjusmen facors (as described in secion 1.1), hese do no appear explicily in he calculaion formula bu are accouned for implicily by applying a price adjusmen facor (PAF) on he capializaion of he securiy affeced by he corporae even. The index, however, is exposed o all he consiuens and when valuing an index uni, hese need o be explicily aken ino accoun. For example, he following corporae evens resul in a creaion of inerim consiuens: Capial Repaymens: he index calculaion assumes ha cash is received in he index and held unil he close when i is finally reinvesed in he index so cash effecively brings performance o he index on he ex-dae and is par of he index uni Spin-off wih he spun-off company no eligible for he index: he calculaion assumes ha he spun-off company is received in he index on he ex-dae and is held unil he close when i is finally sold and he proceeds reinvesed back in he index. In his case, he spun-off company is effecively par of he index on he ex-dae Noe ha he inerim consiuens play a similar role in he index calculaion as he price adjusmen facor (PAF) and he resuling index levels are exacly he same wheher using inerim consiuens or PAFs. To explain how inerim consiuens are creaed, several examples of common corporae evens are described below. Some corporae evens can resul in he creaion of more han one inerim consiuen, bu hese can also be broken up in several simple consecuive corporae evens. Examples Capial Repaymen As an example, consider he repaymen of EUR 0.4 per share by ELISA A effecive Ocober 26, According o he calculaion mehodology, his cash is reinvesed back in he index as of he close of he ex dae, Ocober 26, Hence, inraday, he MSCI Finland index uni holds boh ELISA A and he cash. An inerim consiuen is herefore added o he index uni, as shown below, wih he following characerisics: Inraday index uni number of shares equal o he sock ha repaid capial (given ha each share of ELISA A in he index uni is eniled o he cash paymen) Fixed price equals o he repaymen amoun, EUR Cash will leave he index uni as of he close of Ocober 26 (as indicaed by column G) and he proceeds reinvesed back in he index. Repeaing he calculaions described in he previous secion gives he index uni number of shares change (column O) ha represens he heoreical rade adjusmen o he index 9 Inerim consiuens will be added o he produc files in he second phase of he MSCI Marke Open Index produc (expeced delivery a he end of 2010) MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 82

83 Index Mehodology MSCI Index Calculaion Mehodology uni: cash is sold (negaive change) while he index uni holdings in all he oher consiuens increase (posiive change) Divisor (As of Dae) Divisor (As of Dae + 1) 249,175, ,001,078 A B C D E F G H I J L M N O Calculaion Dae As of Dae Securiy Name Inerim cons. Inerim rading consiuen ype saus Idx Incl Flag (as of dae) Inraday Index NOS MM Inraday Idx Uni NOS Idx Incl Flag (as of dae + 1) End of Day Index NOS MM Price (As FX (As of of Dae) Dae) Subse of he MSCI Finland * Inerim consiuens will be added o he produc files in he second phase of he MSCI Marke Open Index projec (expeced d elivery a he end of 2010) Mcap (As of Dae) D*E*I/J Iniial Mcap (As of Dae + 1) G*H*I/J 10/25/ /26/2009 ELISA A ,763 2, /25/ /26/2009 ELISA A (INTERIM 1)* CASH FIXED /25/ /26/2009 NOKIA CORP 1 3, , ,129 49, /25/ /26/2009 FORTUM CORP ,050 11, /25/ /26/2009 SAMPO A ,521 10, /25/ /26/2009 UPM-KYMMENE ,301 6, /25/ /26/2009 KONE B ,040 6, /25/ /26/2009 STORA ENSO R ,598 4, /25/ /26/2009 METSO CORP ,572 3, /25/ /26/2009 WARTSILA B ,235 3, End of Day Idx Uni NOS Idx Uni NOS Change (N-F) Spin-off wih he Spun-off Company Traded on he Ex dae As an example, consider he spin-off of GAM HOLDING by JULIUS BAER HOLDING wih 1:1 erms effecive Ocober 1, 2009 for he MSCI Swizerland Large Cap index (displayed below). The spun-off company is no eligible o say in he index. On he ex dae (Ocober 1, 2009), he spun-off company sill brings performance o he index and is hence par of he index uni. I is herefore par of he index wih he following characerisics: Inraday index uni number of shares calculaed according o he erms (inraday index uni number of shares of he paren sock * 1/1) Marke price given ha he spun-off company is raded on he ex-dae. I is sold from he MSCI Swizerland Large Cap index uni a he close of he ex-dae and he proceeds are reinvesed back in he index. To deermine he index uni number of shares (column O), he calculaions described in he previous secion should be repeaed. Divisor (As of Dae) 861,052,729 Divisor (As of Dae + 1) 857,954,025 A B C D E F G H I J L M N O Calculaion Dae As of Dae Securiy Name Inerim consiuen ype Underlying Asse Descripion Inerim cons. rading saus Idx Incl Flag (as of dae) Inraday Index NOS MM 9/30/ /1/2009 HOLCIM ,143 16, Subse of he MSCI Swizerland Large Cap Index Uni * Inerim consiuens will be added o he produc files in he second phase of he MSCI Marke Open Index projec (expeced delivery a he end of 2010) Inraday Idx Uni NOS Idx Incl Flag (as of dae + 1) End of Day Index NOS MM Price (As FX (As of of Dae) Dae) Mcap (As of Dae) D*E*I/J Iniial Mcap (As of Dae + 1) G*H*I/J 9/30/ /1/2009 JULIUS BAER HOLDING ,765 7, /30/ /1/2009 JULIUS BAER HOLDING (INTERIM 1)* OTHER ASSET DISTRIBUTED End of Day Idx Uni NOS Idx Uni NOS Change (N-F) GAM HOLDING TRADED , /30/ /1/2009 NESTLE 1 3, , , , /30/ /1/2009 ROCHE HOLDING GENUSS , , /30/ /1/2009 NOVARTIS 1 2, , , , /30/ /1/2009 UBS NAMEN 1 3, , ,859 62, /30/ /1/2009 CREDIT SUISSE 1 1, , ,111 62, /30/ /1/2009 ABB LTD 1 2, , ,372 43, /30/ /1/2009 ZURICH FINL SERVICES ,552 34, /30/ /1/2009 SYNGENTA ,404 21, MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 83

84 Index Mehodology MSCI Index Calculaion Mehodology Spin-off wih Spun-off No Traded on he Ex dae As an example, consider he spinoff of SONAE CAPITAL by SONAE SGPS effecive January 4, Given ha he spun-off company is no rading on he ex-dae bu he marke capializaion of he paren sock drops neverheless o accoun for he value of he spun-off company, MSCI creaes a dummy securiy called deached o represen i. Is price is calculaed as he difference beween he cum and ex prices of he paren securiy on he ex-dae from he ex-dae + 1 onwards. I will be carried in he index a his calculaed fixed price unil he day i sars rading where i is eiher added o he index or deleed a he end of he firs rading day. On he ex-dae, however, i is represened by an inerim consiuen wih he following characerisics: Inraday index uni number of shares equal o he paren company (erms are no considered as his is a dummy securiy Calculaed price in real ime equal o he difference beween he cum price (closing price of he previous day) of he paren company and he ex (curren) price A he close of he ex-dae, he inerim consiuen is replaced by he deached securiy. Noe ha here is no divisor change and hence no index uni number of shares change. Divisor (As of Dae) 216,755,858 Divisor (As of Dae + 1) 216,755,858 A B C D E F G H I J L M N O Inerim Underlying Inerim cons. Idx Incl Inraday Inraday Idx Incl End of Day Mcap Iniial Mcap End of Day Pricing Price (As FX (As of As of Dae Securiy Name consiuen Asse rading Flag (as Index NOS Idx Uni Flag (as of Index NOS (As of Dae) (As of Dae + 1) Idx Uni Formula of Dae) Dae) ype Descripion saus of dae) MM NOS dae + 1) MM D*E*I/J G*H*I/J NOS Calculaion Dae 1/3/2008 1/4/2008 SONAE SGPS ,950 1, /3/2008 1/4/2008 SONAE SGPS (INTERIM 1)* OTHER ASSET SONAE SONAE CAPITAL DISTRIBUTED Calculaed SGPS P() Subse of he MSCI Porugal Index Uni * Inerim consiuens will be added o he produc files in he second phase of he MSCI Marke Open Index projec (expeced delivery a he end of 2010) Idx Uni NOS Change (N-F) /3/2008 1/4/2008 SONAE SGPS (DETACHED) /3/2008 1/4/2008 EDP ENERGIAS DE PORTUGAL 1 2, , ,490 13, /3/2008 1/4/2008 PORTUGAL TELECOM SGPS ,157 10, /3/2008 1/4/2008 BCP BANCO COMERCIAL 1 1, , ,256 7, /3/2008 1/4/2008 BANCO ESPIRITO SANTO ,804 4, /3/2008 1/4/2008 BRISA ,432 4, /3/2008 1/4/2008 PT MULTIMEDIA SERVIC COM ,216 3, /3/2008 1/4/2008 CIMPOR CIMENTOS DE PORT ,796 1, /3/2008 1/4/2008 BANCO BPI ,674 1, /3/2008 1/4/2008 JERONIMO MARTINS SGPS ,559 1, /3/2008 1/4/2008 SONAE INDUSTRIA SGPS Righs Issue As an example, consider he righs issue for BALFOUR BEATTY effecive Ocober 8, 2009 in he MSCI UK Index 10 and described below. 3 righs were offered for every 7 shares held a 1.8 GBP. The performance of he index on he ex-dae reflecs an exposure o he righs and he BALFOUR BEATTY weigh increases only as of he close of he ex-dae. Noe ha he adjusmen for a righs issue is always heoreical (he inrinsic value of he righ is he difference beween he underlying sock price and he subscripion price), even if he righs will lis on an exchange. An inerim consiuen wih he following characerisics is creaed: 10 Noe ha his example is based on he curren adjusmen mehodology for righs issue. The mehodology being differen before November 2009, he published index level was calculaed in a differen way in pracice MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 84

85 Index Mehodology MSCI Index Calculaion Mehodology Inraday index uni number of shares calculaed according o he erms (inraday index uni number of shares of BALFOUR BEATTY imes 3/7) A calculaed price defined as he price of BALFOUR BEATTY minus he subscripion price of 1.8 A he end of he day, he inerim consiuen is deleed from he index (he righs are subscribed o) and he exposure o BALFOUR BEATTY increases (is inraday index number of shares and he divisor increase). The index uni adjusmen (column O) is given by he calculaions described in he previous secions. Divisor (As of Dae) 2,020,072,842 Divisor (As of Dae + 1) 2,020,659,252 A B C D E F G H I J K L M N O Inerim cons. Idx Incl Inraday Inraday Idx Incl End of Day Mcap in Mcap Iniial Mcap End of Day Inerim consiuen Price (As FX (As of As of Dae Securiy Name rading Pricing Formula Flag (as Index NOS Idx Uni Flag (as of Index NOS Idx Uni (As of Dae) (As of Dae + 1) Idx Uni ype of Dae) Dae) saus of dae) MM NOS dae + 1) MM D*F*I/J D*E*I/J G*H*I/J NOS Calculaion Dae 10/7/ /8/2009 BALFOUR BEATTY ,152 3, /7/ /8/2009 THEO RIGHT - NEW BALFOUR BALFOUR BEATTY (INTERIM 1)* CALCULATED UNDERLYING SHRAES BEATTY P() /7/ /8/2009 HSBC HOLDINGS (GB) 1 17, , , , /7/ /8/2009 BP 1 18, , , , /7/ /8/2009 VODAFONE GROUP 1 52, , , , /7/ /8/2009 GLAXOSMITHKLINE 1 5, , , , /7/ /8/2009 ROYAL DUTCH SHELL A 1 3, , , , /7/ /8/2009 ROYAL DUTCH SHELL B 1 2, , ,561 74, Subse of he MSCI UK Index Uni * Inerim consiuens will be added o he produc files in he second phase of he MSCI Marke Open Index projec (expeced delivery a he end of 2010) Idx Uni NOS Change (N-F) MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 85

86 Index Mehodology MSCI Index Calculaion Mehodology Inerim Consiuen Creaion Rules Descripion of even Paren Securiy Inraday NOS* Paren Securiy Pre-open Price Inerim Consiuen Type Trading Saus Inerim Consiuen Inraday NOS Inerim Consiuen Pre-open Price Inerim Consiuen Inraday/Closing Price Buyback Agains Cash - EndOfDayNOS(-1) adjused o ake only ino accoun he shares ha have no been bough back Theo-ex price aking ino accoun he erms of he even CASH Fixed EndOfDayNOS(-1) of paren securiy adjused o ake ino accoun he shares ha have been bough back Buyback price Buyback price Buyback of Shares - EndOfDayNOS(-1) adjused o ake only ino accoun he shares ha have no been bough back Theo-ex price aking ino accoun he erms of he even OTHER ASSET ACQUIRED Traded EndOfDayNOS(-1) of paren securiy adjused o ake ino accoun he shares ha have been bough back and he amoun of oher asse acquired Oher asse acquired price Oher asse acquired price Capial Repaymen - - EndOfDayNOS(-1) Theo-ex price aking ino accoun he erms of he even CASH Fixed EndOfDayNOS(-1) of paren securiy Cash amoun Cash amoun Insallmen Receip - - EndOfDayNOS(-1) Theo-ex price aking ino accoun he erms of he even CASH Fixed EndOfDayNOS(-1) of paren securiy - [minus] Cash amoun - [minus] Cash amoun Parial Tender Offer of Shares - EndOfDayNOS(-1) adjused o ake only ino accoun he shares ha have no been bough back Theo-ex price aking ino accoun he erms of he even OTHER ASSET ACQUIRED Traded EndOfDayNOS(-1) of paren securiy adjused o ake ino accoun he shares ha have been bough back and he amoun of oher asse acquired Oher asse acquired price Oher asse acquired price Parial Tender Offer Agains Cash - EndOfDayNOS(-1) adjused o ake only ino accoun he shares ha have no been bough back Theo-ex price aking ino accoun he erms of he even CASH Fixed EndOfDayNOS(-1) of paren securiy adjused o ake ino accoun he shares ha have been bough back Tender offer price Tender offer price Redempio n Agains Cash - EndOfDayNOS(-1) adjused o ake only ino accoun he shares ha have no been bough back Theo-ex price aking ino accoun he erms of he even CASH Fixed EndOfDayNOS(-1) of paren securiy adjused o ake ino accoun he shares ha have been bough back Redempion price Redempion price MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 86

87 Index Mehodology MSCI Index Calculaion Mehodology Descripion of even Paren Securiy Inraday NOS* Paren Securiy Pre-open Price Inerim Consiuen Type Trading Saus Inerim Consiuen Inraday NOS Inerim Consiuen Pre-open Price Inerim Consiuen Inraday/Closing Price Righs Issue Righ of New Underlying Shares - EndOfDayNOS(-1) Theo-ex price aking ino accoun he erms of he even THEORETICAL RIGHT - NEW UNDERLYING SHARES Calculaed EndOfDayNOS(-1) of paren securiy adjused by he erms of he righ Theo-ex price of paren consiuen - subscripion price Ex price of paren consiuen - subscripion price Righs Issue Righ of New Underlying Shares No Eniled o Forhcoming Dividend - EndOfDayNOS(-1) Theo-ex price aking ino accoun he erms of he even THEORETICAL RIGHT - NEW UNDERLYING SHARES Calculaed EndOfDayNOS(-1) of paren securiy adjused by he erms of he righ Theo-ex price of paren consiuen - subscripion price - gross dividend per share Ex price of paren consiuen - subscripion price - gross dividend per share Righs Issue Righ of New Underlying Shares wih Anoher Asse (bond, warran, preferred, ec.) aached If marke righ is raded EndOfDayNOS(-1) Theo-ex price aking ino accoun he erms of he even MARKET RIGHT Traded If marke righ is raded for one "old" share: EndOfDayNOS(-1) of paren securiy If marke righ is raded for one "new" share: EndOfDayNOS(-1) of paren securiy adjused by he erms of he righ If marke righ is raded for one "old" share: Marke righ or Theo-ex price of paren consiuen - subscripion price adjused for he erms of he righ If marke righ is raded for one "new" share: Marke righ or Theo-ex price of paren consiuen - subscripion price Marke righ MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 87

88 Index Mehodology MSCI Index Calculaion Mehodology Descripion of even Paren Securiy Inraday NOS* Paren Securiy Pre-open Price Inerim Consiuen Type Trading Saus Inerim Consiuen Inraday NOS Inerim Consiuen Pre-open Price Inerim Consiuen Inraday/Closing Price If marke righ is no raded bu oher asse aached is raded EndOfDayNOS(-1) Theo-ex price aking ino accoun he erms of he even THEORETICAL RIGHT - NEW UNDERLYING SHARES and OTHER ASSET ATTACHED Calculaed and raded "Theoreical righ consiuen": EndOfDayNOS(-1) of paren securiy adjused for he erms of he righ "OherAsseAached consiuen": EndOfDayNOS(-1) of paren securiy adjused by he erms of he righ "Theo righ consiuen": Theo-ex price of paren securiy - subscripion price "OherAsseAa ched consiuen": Oher Asse Aached price "Theo righ consiuen": Ex price of paren securiy - subscripion price "OherAsseAache d consiuen": Oher Asse Aached price If marke righ and oher asse aached price are no raded EndOfDayNOS(-1) Theo-ex price aking ino accoun he erms of he even THEORETICAL RIGHT - NEW UNDERLYING SHARES Calculaed EndOfDayNOS(-1) of paren securiy adjused by he erms of he righ Theo-ex price of paren consiuen - subscripion price Ex price of paren consiuen - subscripion price Righs Issue Righ of Anoher Type of Asse (bond, warran, preferred, ec.) If Oher Asse Acquired is raded If marke righ is raded EndOfDayNOS(-1) EndOfDayNOS(-1) Theo-ex price aking ino accoun he erms of he even Theo-ex price aking ino accoun he erms of he even THEORETICAL RIGHT - OTHER ASSET ACQUIRED MARKET RIGHT Calculaed Traded EndOfDayNOS(-1) of paren securiy adjused by he erms of he righ If marke righ is raded for one "old" share: EndOfDayNOS(-1) of paren securiy If marke righ is raded for one "new" share: EndOfDayNOS(-1) of paren securiy adjused for he erms of he righ Oher asse acquired price - subscripion price or NULL If marke righ is raded for one "old" share: Marke righ or NULL If marke righ is raded for one "new" share: Marke righ or NULL Oher asse acquired price - subscripion price Marke righ MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 88

89 Index Mehodology MSCI Index Calculaion Mehodology Descripion of even Paren Securiy Inraday NOS* Paren Securiy Pre-open Price Inerim Consiuen Type Trading Saus Inerim Consiuen Inraday NOS Inerim Consiuen Pre-open Price Inerim Consiuen Inraday/Closing Price Righs Issue Righ of Shares in Anoher Lised Securiy - EndOfDayNOS(-1) Theo-ex price aking ino accoun he erms of he even THEORETICAL RIGHT - OTHER ASSET ACQUIRED Calculaed EndOfDayNOS(-1) of paren securiy adjused by he erms of he righ Oher asse acquired price - subscripion price Oher asse acquired price - subscripion price Special Dividend An adjusmen is made for special dividends when he impac of dividend on he price of he day prior he ex-dae is greaer han or equal o 5%. - EndOfDayNOS(-1) Theo-ex price aking ino accoun he erms of he even CASH Fixed EndOfDayNOS(-1) of paren securiy Cash amoun Cash amoun Spin-off Spun-off raded on he ex-dae - EndOfDayNOS(-1) Theo-ex price aking ino accoun he erms of he even OTHER ASSET DISTRIBUTED Traded EndOfDayNOS(-1) of paren securiy adjused by he erms of he spinoff Oher Asse Disribued price Oher Asse Disribued price Spin-off Spun-off NOT raded on he exdae (creaion of a 'deached' securiy) - EndOfDayNOS(-1) Theo-ex price aking ino accoun he erms of he even OTHER ASSET DISTRIBUTED Calculaed EndOfDayNOS(-1) of paren securiy Oher Asse Disribued price adjused by he erms of he even Cum price - Ex price of paren securiy Sock Sock wih New Shares No Eniled o Forhcoming Dividend - EndOfDayNOS(-1) adjused o ake ino accoun he Sock Theo-ex price aking ino accoun he erms of he even CASH Fixed EndOfDayNOS(-1) of paren securiy adjused by he erms of he sock - [minus] Forhcoming Gross Dividend - [minus] Forhcoming Gross Dividend Sock Disribuion of Anoher Type of Asse (bond, - EndOfDayNOS(-1) Theo-ex price aking ino accoun he erms of he even OTHER ASSET DISTRIBUTED Traded EndOfDayNOS(-1) of paren securiy adjused by he erms of he sock Oher Asse Disribued or NULL Oher Asse Disribued MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 89

90 Index Mehodology MSCI Index Calculaion Mehodology Descripion of even Paren Securiy Inraday NOS* Paren Securiy Pre-open Price Inerim Consiuen Type Trading Saus Inerim Consiuen Inraday NOS Inerim Consiuen Pre-open Price Inerim Consiuen Inraday/Closing Price warran, preferred, ec.) Sock Disribuion of New Underlying Shares wih Warrans aached - EndOfDayNOS(-1) adjused o ake ino accoun he Sock Theo-ex price aking ino accoun he erms of he even OTHER ASSET ATTACHED Traded EndOfDayNOS(-1) of paren securiy adjused by he erms of he sock Oher Asse Aached or NULL Oher Asse Aached Muliple corporae evens happening on he same day use a combinaion of he above rules and can poenially resul in several inerim consiuens being creaed *In case of muliple corporae evens, he field "EndOfDayNOS(-1)" should be replaced by he "InradayNOS" calculaed during he previous even MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 90

91 Index Mehodology MSCI Index Calculaion Mehodology MSCI Index Calculaion Mehodology Book Tracked Changes The following secion has been updaed since January February: Daily Hedged Indices o Change in he wording o clarify he hedged indices calculaion mehodology (3.2.1 and 3.2.2) o Updae of he Daily Hedged Index example (3.2.5) Appendix VI: Wihholding Tax Raes o Addiion of Fronier Markes o Removal of Venezuela Appendix VII: Closing Prices Policy o Addiion of Fronier Markes o Removal of Venezuela Appendix VIII: Counry Composiion of MSCI Regional Indices o Addiion of Fronier Markes counries o Addiion of 3 regions (GCC counries, Arabian Markes, Fronier Markes) March: Appendix VII: Closing Prices Policy o Change in he closing price descripion for Croaia o Addiion of Dubai Inernaional Financial for Unied Arab Emiraes April: May: July: Appendix VII: Closing Prices Policy o Change in he closing price descripion for Croaia o Addiion of Dubai Inernaional Financial for Unied Arab Emiraes Appendix VII: Closing Prices Policy o Change in he closing price descripion for Israel (Domesic). o Change in he Closing price available ime (local) of Bahrain marke o Change in he Closing price used, price descripion and available ime for HK. Appendix II: Securiy level informaion: Annualized Traded Value Raio (ATVR) and Annual Traded Value o New secion MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 91

92 Index Mehodology MSCI Index Calculaion Mehodology Sepember: November: December: 2009 February: Appendix VII: Closing Prices Policy o Closing prices available a 5:30pm local ime for Norway (Oslo Sock ). o Include Serbia and Belgrade Sock rading informaion. Appendix VI: Wihholding Taxes Raes o Addiion of Lihuania and Serbia Appendix VII: Closing Prices Policy o Closing price availabiliy for Greece updaed o be 5:20pm local ime. o Closing price used for Serbia marke updaed o be VWAP. o Closing price used for Chile marke updaed o be Official Closing Price. Appendix VIII: Counry Composiion of MSCI Regional Indices o Addiion of Lihuania and Serbia. o Updaes for Jordan Appendix VII: Closing Prices Policy o Closing price descripion of Thailand includes explanaion of applying random aucion call mehod o boh main board and foreign board of sock exchange of Thailand. o Price used for The Bombay Sock updae o be WAP, descripion is also updaed accordingly. o Closing price descripion of The Naional Sock of India has been confirmed o be Volume Weighed Average Price. o Closing price used and descripion for Pakisan will ake las available ASK price for hose securiies ha do no repor one or more rades on he Karachi Sock for he calculaion dae. o Include coverage of Boswana, Ghana, Jamaica and Trinidad and Tobago. o Closing price availabiliy ime change of Israel marke Appendix VIII: Counry Composiion of MSCI Regional Indices o Updaes for Pakisan Secion 2: MSCI Daily Toal Reurn (DTR) Index Mehodology o Counry Excepions Updae on Russian dividends reamen (2.3.6) o Taxes on Dividends Change in he wording o clarify he dividend axes (2.3.7) Addiion of Ausralian Dividends as an excepion ( ) Appendix VI: Wihholding Tax Raes o o Addiion of Boswana, Ghana, Jamaica and Trinidad and Tobago Updaes for China on B shares and H shares, Esonia, Germany, Greece, Korea, and Philippines MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 92

93 Index Mehodology MSCI Index Calculaion Mehodology March: Appendix VI: Wihholding Tax Raes o Updaes for Kazakhsan and Lihuania April Appendix VII: Closing Prices Policy o Updae close price definiion and descripion of Trinidad and Tobago May: Secion 1: MSCI Price Index Mehodology o Reordering of chapers o Addiion of example of index calculaion using conribuion mehod o Addiion of chaper Noe on Index Calculaion in Local Currency o Addiion of chaper Conversion of indices ino Anoher Currency Secion 2: MSCI Daily Toal Reurn (DTR) Index Mehodology o dividends resuling in a reinvesmen only Change in paragraph relaed o opional dividend Appendix V: Singapore and Singapore Free Indices o Secion added. Informaion was previously par of Frequenly Asked Quesions Appendix Appendix VI: Wihholding Tax Raes o Updaes for China Red Chip and Kuwai Appendix VII: Closing Prices Policy o Closing price used for Jamaica updaed o be Average Price o Closing price used for Pakisan updaed o be Official Close o Addiional closing price used for Kazakhsan updaed o be closing price of Kazakhsan (UK lised Deposiory Receips) and following UK closing price policy. Appendix VIII: Counry composiion of MSCI Regional Indices o Updae for Argenina o Updae for Pakisan o Updae for Trinidad and Tobago Frequenly Asked Quesions o Secion removed: Removal of informaion relaed o Israel Domesic and Israel Non- Domesic o Informaion relaed o Singapore and Singapore Free Indices moved o Appendix V. July: Appendix VII: Closing Prices Policy o Closing price used for UAE, Inernaional Financial, updaed o be Official Close Price o Closing price used for Czech Republic updaed o be Official Close Price. o Updae closing prices availabiliy for he Belgium, Neherlands, France and Porugal. MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 93

94 Index Mehodology MSCI Index Calculaion Mehodology o o o o Updae close price definiion and descripion of USA (NASDAQ Global Marke, NASDAQ Global Selec Marke) Addiional column of marke idenifier code (MIC) is added. Closing price descripion updae of ADR from Argenina, Colombia, Israel and Peru. Bloomberg counry codes for he following counries have been updaed. (Argenina, Brazil, Canada, Chile, Columbia, Czech Republic, Egyp, Kazakhsan (UK lised Deposiory Receips), Korea, Pakisan, Russia (UK lised Deposiory Receips), Spain, UAE, USA, Vienam) Sepember: November: Appendix VII: Closing Prices Policy o MIC updae for Oslo Sock and Taiwan Sock. MSCI Equiy Indices o Addiion of CNY as a currency indices are provided in. Secion 1 and secion 2 o Addiion of noe for China A indices relaed o he use of he Index Inclusion Facor Secion 2 o Ne Daily Today Reurn o Updaes for Ne Daily Toal Reurn (2.2) o Wihholding Tax o Counry of incorporaion is used o deermine he relevan dividend wihholding ax rae ( ) Secion 3: Alernaive Index Calculaion o Secion renamed Gross Domesic Produc (GDP) Weighed Indices o Removal of Daily Hedged Indices chaper Appendix I: MSCI GCC Counry Indices: Saurday/Sunday Index Calculaion o Removal of he noe relaed o he use of Index Inclusion Facor which is no relevan for GCC Counries. Appendix III: Raes o Deails added relaed o reamen in special circumsances and if WM/Reuers does no provide raes. Appendix VI: Wihholding Tax Raes o Updaes for wihholding ax raes based upon counry of incorporaion 2010 January: Appendix VI: Wihholding Tax Raes o Updaes for Lihuania and Spain February: MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 94

95 Index Mehodology MSCI Index Calculaion Mehodology May: MSCI Equiy Indices o Addiion of BRL, HKD, INR, RUB and SGD as currencies indices are provided in o Addiion of a noe relaed o he reamen of index rupures Appendix VII: Closing Prices Policy o Updae for he change of closing price for Saudi Arabia Appendix VIII: Counry Composiion of MSCI Seleced Regional Indices o Addiion of Bangladesh o Changes for Israel o reflec is move from EM o DM coverage Secion 2: MSCI Daily Toal Reurn (DTR) Index Mehodology o Correcion Addiion of precision in correcion implemenaion iming o Counry Excepions Addiion of precision on iming for implemenaion of lae dividends (2.3.6) Addiion of precision on Korean and Russian lae dividends (2.3.6) Appendix I: Saurday/Sunday Index Calculaion o Addiion of precision on corporae Evens reamen Appendix VII: Closing Prices Policy o Removal of pricing informaion for Israel non Domesic o Closing price used for Pakisan updaed o be Official Close Appendix VIII: Counry Composiion of MSCI Seleced Regional Indices o Changes for Bangladesh o reflec is inclusion ino he FM regional index. Appendix IX: Real Time Indices o New secion June: Appendix VII: Closing Prices Policy o Closing price used for Greece updaed o be Aucion Close Appendix X: Index Calculaion Mehodology Using Index Divisors o New secion Augus: Appendix VI: Wihholding Tax Raes o Addiion of Bosnia and Herzegovina o Updae for Slovenia Appendix VII: Closing Prices Policy o Addiion of Bangladesh o Addiion of Bosnia and Herzegovina o Closing price used for Greece updaed o Closing price used for Czech Republic updaed Appendix VIII: Counry Composiion of MSCI Seleced Regional Indices o Addiion of Bosnia and Herzegovina MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 95

96 Index Mehodology MSCI Index Calculaion Mehodology Sepember: Ocober: Secion 2: MSCI Daily Toal Reurn (DTR) Index Mehodology o Correcion Addiion of correcion policy for MSCI Fronier Markes Indices Appendix VII: Closing Prices Policy o Closing price used for Nigeria updaed o Official Close o Removal of Saudi Arabia Appendix VIII: Counry Composiion of MSCI Seleced Regional Indices o Replaced index GCC COUNTRIES by index GCC COUNTRIES ex SA o Replaced index ARABIAN MARKETS by index ARABIAN MARKETS ex SA o Removal of Saudi Arabia Appendix I: Sunday Index Calculaion o Disconinuaion of Saurday producs Appendix VII: Closing Prices Policy o Closing price used for Qaar updaed o Las raded price November: 2011 January: February: MSCI Equiy Indices o Addiion of KRW as a currency indices are provided in. Appendix VII: Closing Prices Policy o Removal of closing price informaion for Russian Trading Sysem (RTS) Appendix VI: Wihholding Tax Raes o Updae for Porugal Appendix VII: Closing Prices Policy o Closing price used for Slovenia updaed o Official Close Secion 3: Gross Domesic Producs (GDP) Weighed Indices o Secion removed. Appendix VI: Wihholding Tax Raes o Updae for Greece Appendix VII: Closing Prices Policy o Closing price used for Ghana updaed o VWAP o Closing price availabiliy ime change for Prague and Warsaw Sock s o Addiion of Zimbabwe o Addiion of a noe relaed o marke closure March: Secion 2.2.4: Dividends Resuling in a Reinvesmen or in a Price Adjusmen MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 96

97 Index Mehodology MSCI Index Calculaion Mehodology May: July: o Updae for Special/Exra Dividend Appendix VI: Wihholding Tax Raes o Updae for Chile Secion 2 : Capial Repaymens Resuling in a Reinvesmen or in a Price Adjusmen o Updae for regular and exraordinary capial repaymens Appendix VI: Wihholding Tax Raes o Updae for Greece o Addiion of Curacao o Addiion of Faroe Islands o Addiion of Zimbabwe o Change in he noe relaed o China wihholding ax Appendix VII: Closing Prices Policy o Change of Reuers Code for Jamaica Appendix VIII: Counry Composiion of MSCI Seleced Regional Indices o Addiion of Zimbabwe o Updae for Trinidad and Tobago Appendix VII: Closing Prices Policy o Change in closing price definiion for Trinidad and Tobago Appendix VI: Wihholding Tax Raes o Updae for Boswana Augus: Ocober: Secion 2.2.5: Dividends Resuling in a Price Adjusmen Only o Updae of Sock Dividend (sock bonus/grais issue) Secion : Counry Excepion o Addiion of Taiwanese Sock Dividends November: Appendix VI: Wihholding Tax Raes o Addiion of a noe relaed o Malaysia wihholding ax o Addiion of a noe relaed o Unied Kingdom wihholding ax Appendix VII: Closing Prices Policy o Addiion of special noe for Japanese securiies o Closing price availabiliy ime change for Chile, Colombia, Esonia, India, Japan, Jordan, Lihuania, Mauriius, Nigeria, Philippines, Porugal and Ukraine. o Addiion of Ukrainian (Ukraine) o Addiion of Banja Luka (Bosnia and Herzegovina) MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 97

98 Index Mehodology MSCI Index Calculaion Mehodology 2012 January: February: March: Appendix VI: Wihholding Tax Raes o Updae for Chile, Denmark, Finland, France, Greece, Israel, Ialy, Porugal and Spain Appendix VI: Wihholding Tax Raes o Updae for Finland Appendix VI: Wihholding Tax Raes o Removal of he noe relaed o Ialy wihholding ax o Updae for Croaia Appendix VII: Closing Prices Policy o Change in closing price definiion for Turkey April: May: Appendix VI: Wihholding Tax Raes o Updae for Souh Africa Appendix VII: Closing Prices Policy o Correcion of he Marke Idenifier Code (MIC) for Ukrainian Secion 2: MSCI Daily Toal Reurn (DTR) Index Mehodology o Timing of reinvesmen Deails added relaed o reinvesmen when he securiy does no rade Appendix VI: Wihholding Tax Raes o Addiion of a noe relaed o Japan wihholding ax Appendix IX: MSCI Real Time Indices o Deails added relaed o reinvesmen when he securiy does no rade Appendix VII: Closing Prices Policy o Change in closing price definiion for Kuwai o Change in closing price availabiliy for Indonesia MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 98

99 Index Mehodology MSCI Index Calculaion Mehodology Clien Service Informaion is Available 24 Hours a Day clienservice@ Americas Europe, Middle Eas & Africa Asia Pacific Americas Alana Boson Chicago Monreal Monerrey New York San Francisco Sao Paulo Samford Torono (oll free) Amserdam Cape Town Frankfur Geneva London Madrid Milan Paris Zurich (oll free) China Norh China Souh Hong Kong Seoul Singapore Sydney Tokyo (oll free) (oll free) (oll free) Noice and Disclaimer This documen and all of he informaion conained in i, including wihou limiaion all ex, daa, graphs, chars (collecively, he Informaion ) is he propery of MSCl Inc. or is subsidiaries (collecively, MSCI ), or MSCI s licensors, direc or indirec suppliers or any hird pary involved in making or compiling any Informaion (collecively, wih MSCI, he Informaion Providers ) and is provided for informaional purposes only. The Informaion may no be reproduced or redisseminaed in whole or in par wihou prior wrien permission from MSCI. 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MSCI Daa Operaions & Technology 2012 MSCI Inc. All righs reserved. Please refer o he disclaimer a he end of his documen 99