The MSCI (Morgan Stanley Capital International) AC (All Country) Asia Pacific Index captures large and mid-cap representation across 5 Developed Markets countries and 8 Emerging Markets countries in the Asia Pacific region with 1,004 constituents. The index covers approximately 85% of the free float-adjusted market capitalization in each country. The MSCI AC Asia Pacific Index was launched on Dec 01, 1998.
Developed Markets countries in the index include: Australia, Hong Kong, Japan, New Zealand and Singapore. Emerging Markets countries include: China, India, Indonesia, Korea, Malaysia, Philippines, Taiwan and Thailand.
The index is based on the MSCI Global Investable Market Indexes (GIMI) Methodology—a comprehensive and consistent approach to index construction that allows for meaningful global views and cross regional comparisons across all market capitalization size, sector and style segments and combinations. This methodology aims to provide exhaustive coverage of the relevant investment opportunity set with a strong emphasis on index liquidity, investibility and replicability. The index is reviewed quarterly—in February, May, August and November—with the objective of reflecting change in the underlying equity markets in a timely manner, while limiting undue index turnover. During the May and November semi-annual index reviews, the index is rebalanced and the large and mid-capitalization cut-off points are recalculated.
The index is calculated using the Weighted Average Market Capitalization methodology where the price multiplied by the free float gives the market capitalization of its constituents. The weightage of each company is arrived at by dividing the market capitalization of each company with the total market capitalization of all the 1,004 companies. The larger the market weightage of the company the larger is the impact due to 1% change in its price on the index.
Financials at 30% followed by Information Technology at 14.03%, Consumer Discretionary at 12.9%, Industrial at 12.64%, Materials at 7.7%, Consumer Staples at 6.59%, Telecommunication Services at 5.3%, Energy at 4.05%, Healthcare at 3.74 and Utilities at 3.05% form the sector allocation in the index.
The Country specific weights has Japan at 38.91% followed by Australia at 15.69%, China at 10.76%, South Korea at 9.27%, Taiwan at 6.96% and other countries at 18.41%.
The MSCI AC Asia Pacific Index has given a return of 8.01% on a year on year basis and has gained 3.56% on a month on month basis. The index has a Price to Earnings ratio of 14.06 in the current scenario. Samsung Electronics company of South Korea and Toyota Motor Corporation of Japan has the highest weightage of 2.3% each in the index followed by Commonwealth Bank with a weightage of 1.8%, BHP Billiton of Australia with 1.63%, Westpac Banking of Australia with 1.47%, Taiwan Semiconductor MFG at 1.45% and ANZ Banking Group of Australia at 1.26% while others have less than 1.09% weightage each in the index.
Top Ten Constituents for MSCI Asia Pacific Index