MSCI Emerging Markets stock index adds South African listed property

Posted On Tuesday, 18 November 2008 02:00 Published by eProp Commercial News
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Equity index provider MSCI Barra has announced that it will be adding South African real estate company Growthpoint Properties Limited to the MSCI Emerging Markets stock index


Growthpoint is largest South African listed property company with 436 geographically and sectorally diverse properties valued at over R27 billion and a market capitalisation of over R17 billion. It will be added to the index as of the close of trade on Tuesday, 25 November 2008, MSCI said in a statement.


“Growthpoint welcomes its inclusion in MSCI Emerging Markets stock index. We believe that it will serve to enhance the company’s recognition and attractiveness in international financial markets, as well as locally,” says Norbert Sasse, CEO of Growthpoint Properties Limited.

MSCI Barra is a leading provider of investment decision support tools to investment institutions worldwide. MSCI Barra products include indices and portfolio risk and performance analytics for use in managing equity, fixed income and multi-asset class portfolios. It is headquartered in New York, with research and commercial offices around the world. Morgan Stanley, a global financial services firm, is the controlling shareholder of MSCI Barra.

Anton de Goede of Coronation Fund Managers explains that despite the current stock market volatility Emerging Markets remains a popular risk/return diversifier in multi-asset class portfolios.


“The significance of the inclusion in the widely followed MSCI Emerging Markets Index is important as many investors utilize index tracker funds against this index to receive exposure to Emerging Markets. The benefit of an inclusion in an equity index, compared to the inclusion in the recently launched property specific GPR General Emerging Markets Index or FTSE EPRA NAREIT Global Emerging Market Index, is that international investors would not need to amend any investment universe guidelines to specifically include emerging market property in an investment portfolio,” says de Goede.


Catalyst Fund Managers’ Andre Stadler explains that apart from potential new foreign investment in Growthpoint, there is no doubt the inclusion in a major benchmark index like MSCI will raise the profile of Growthpoint among international investors.

Leon Allison of Macquarie Securities agrees that that the move will serve to increase investor awareness of Growthpoint globally. “By implication managers benchmarking their performance to the index will need to take a look at Growthpoint which they may not have previously needed to do,” points out Allison.

Last modified on Friday, 18 April 2014 18:57

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