Buat ytta

In MSCI (Morgan Stanley Capital International) indices, a security's Foreign Inclusion Factor (FIF) represents the proportion of its shares available for purchase by international investors, essentially reflecting its free float adjusted for foreign ownership limitations. A higher FIF means a greater portion of the company's shares are considered eligible for inclusion in MSCI indices, potentially leading to increased investment from passively managed funds tracking those indices.
Here's a more detailed explanation:
Free Float:
The free float of a stock is the number of shares available for trading by the public, excluding shares held by insiders, controlling shareholders, or governments.
Foreign Inclusion Factor (FIF):
MSCI uses FIF to adjust the weight of a company in its indices to reflect the proportion of its shares that are actually available for purchase by international investors.
Impact on Index Weighting:
If a company has a low FIF due to high foreign ownership restrictions, its weight in the MSCI index will be lower, even if its total market capitalization is large.
Influence on Investment:
When a company's FIF increases, it becomes eligible for a larger weighting in MSCI indices. This can trigger increased buying pressure from institutional investors, particularly those tracking MSCI indices, as they adjust their portfolios to match the index changes.

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