Calculation Methodology Change for the MSCI/AREF UK Quarterly Property Fund Index
MSCI have announced the conclusion from its recent consultation with the UK real estate investment community on the incorporation of a time-weighted return (TWR) methodology (reflecting daily-weighted external cash flows at fund level) for use in the MSCI/AREF UK Quarterly Property Fund Index.
Based on the consultation feedback, it has been concluded that for the MSCI/AREF UK Quarterly Property Fund Index no changes will be made to the current index calculation methodology and it will continue to be based on the unitised computation methodology with adjustments for cross-holdings.
For more information please read the announcement.
Changes to the inclusion criteria of MSCI/AREF UK Quarterly Property Fund Index
Also, MSCI announced the conclusion from its recent consultation with the UK real estate investment community on the changes to the inclusion criteria for the MSCI/AREF UK Quarterly Property Fund Index (UK PFI). The consultation decision is aimed at having inclusion rules that are simple, consistent and rules-based.
Following the positive feedback received from the market participants MSCI will implement the below enhancements on a moving forward basis starting Q1 2022 results reporting with no restatement to index history:
- Changes to the certain Index inclusion rules
- Changes to Sub-index inclusion rules
- Introduce quarterly review and observation period for certain criteria to assess eligibility of index constituents
- In order to reflect the changes to sub-index rules, the current sub-indexes are renamed as outlined in the index announcement.
For further details on consultation decision on changes to the inclusion criteria please read the announcement.