UK stocks to stay in the main European equity benchmarks
The UK might leave the European Union but the country´s stocks would continue to be included in the main pan-European equity indices, two of the world´s main benchmark compilers said.
Conditions such as a country´s membership in the EU, or otherwise, would have no bearing on the composition of the MSCI Europe index, hence UK shares would continue to be eligible for inclusion in the Stoxx series of indices, Bloomberg reported citing representatives from both companies.
Nonetheless, should trading conditions be impacted by political or other events then MSCI would review the composition of its benchmarks, as occurred last year when Greece shut-down its market.
“[Brexit] is a very severe market event, but we are not adjusting our indexes on market events. The markets are fully functional. We are monitoring the situation, but there is no change of plan right now,” Remy Briand, MSCI´s global head of research reportedly said.
A spokeswoman at LSE Group, owner of the FTSE Russell indices, declined to comment on potential index changes, Bloomberg said.
MSCI was said to be preparing a study, whose findings were to be published in July, focused on the potential impact that populist policies in various geographies might have on institutional funds and investor portfolios.