MSCI World index methodology

For a long time, I have been pondering how MSCI created the MSCI World stock market index, and what the strategy is behind the stock selection.

I found this explanation on the MSCI Website: "The index is built using MSCI’s Global Investable Market Index (GIMI) methodology, which is designed to take into account variations reflecting conditions across regions, market-cap segments, sectors and styles. With over $3.1 trillion in assets benchmarked to the MSCI World Indexes, MSCI is a leader in global equity indexes."

Source: https://www.msci.com/documents/1296102/1362201/MSCI-MIS-World-Brochure-May-2018.pdf/8f4db460-a0cb-d845-226b-fe2472b3dc08

however, this is a bit vague / unclear to me. Can someone clarify?

Submitted May 27, 2018 at 07:32AM by gorillaz0e https://ift.tt/2LynLvW