MSCI to apply issuer capping on EM Islamic Index

Published 19/05/2025, 16:54
MSCI to apply issuer capping on EM Islamic Index

LONDON - iShares II plc has announced that the MSCI Emerging Markets (EM) Islamic Index, tracked by the iShares MSCI EM Islamic UCITS ETF (ISIN:IE00B27YCP72), will undergo changes to its structure. In an effort to enhance diversification and manage concentration risk, the index provider MSCI will implement issuer capping on the constituents of the Index. These modifications are scheduled to take effect around June 2, 2025.

The Directors of iShares II plc, the company behind the exchange-traded fund (ETF), informed investors that a revised version of the company’s prospectus will be published to coincide with the changes. The updated prospectus will provide detailed information on the adjustments to the Index and will be available on or around the effective date of the changes.

The MSCI EM Islamic Index is designed to measure the performance of companies in emerging markets that comply with Islamic investment principles. The introduction of issuer capping is intended to prevent any single issuer from dominating the index, thus maintaining a balanced representation of the market.

Shareholders and interested investors will soon be able to access an electronic copy of the full shareholder letter, which will be posted on the Financial Conduct Authority’s National Storage Mechanism database and available for download from the iShares website.

iShares has also provided contact information for investors who may have questions regarding this update. Investors in the United Kingdom (TADAWUL:4280) or other regions can reach out to iShares via the provided email address or helpline telephone number. Separate contact details have been given for investors in Germany and Switzerland.

This adjustment to the index’s methodology is part of the ongoing updates that ETF providers and index compilers make to reflect changes in market dynamics and maintain the relevance and integrity of their financial products.

The information about these forthcoming changes is based on a press release statement issued by iShares II plc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.