An abbreviation for the Morgan Stanley Capital International Europe, Australia, Far East Index. It's a market- capitalization-weighted index representing approximately 60% of market capitalizations of 20 countries. Japanese stocks have the heaviest weighting in the index, over 40%. Most international funds allocate their investments by referencing this index. When an international fund manager says he is underweighting or overweighting a country, he means compared to the EAFE Index.