MSCI Announces New License for MSCI ACWI Investable Market Indices
NEW YORK--(BUSINESS WIRE)-- MSCI Inc. (NYS: MSCI) , a leading provider of investment decision support tools worldwide, including indices, portfolio risk and performance analytics and corporate governance services, announced that its MSCI ACWI IMI ex US, MSCI EAFE IMI and MSCI Emerging Markets IMI Indices will serve as the basis for the international equity components of iShares' Core Series of Exchange Traded Funds (ETFs). The iShares Core Series, the launch of which was announced on October 15, 2012, is a suite of products offering a family of domestic and international equity and U.S. fixed income ETFs. Included in the launch are three international equity ETFs: iShares Core MSCI Total International Stock ETF, iShares Core MSCI Emerging Markets ETF, and iShares Core MSCI EAFE ETF.
Baer Pettit, Managing Director and Head of MSCI's Index Business, said, "We are delighted that iShares has chosen MSCI indices as the basis for this exciting new series of ETFs. The licensing of these indices will enable iShares to further broaden its product offering beyond ETFs based on our standard family of indices. We look forward to continuing to work with iShares in the future."
Mark Wiedman, Managing Director and Global Head of iShares, said, "All three iShares Core international equity ETFs track segments of the flagship MSCI ACWI Investable Market Index (IMI), providing investors access to some of the broadest exposure available in the global equity universe today. MSCI is the predominant choice of professional investors and we're pleased to deepen our relationship with them through the introduction of these new products using their indexes to help deliver high quality portfolio construction to all investors small and large."
iShares selection of MSCI further broadens the range of MSCI indices linked to iShares ETFs. Many of iShares' existing ETFs, including such large ETFs as iShares MSCI Emerging Markets ETF and iShares MSCI EAFE ETF, track indices from MSCI's standard family. The standard family of indices is comprised of global large and mid-cap equities, and a number of indices within the standard family, such as MSCI EAFE, MSCI Emerging Markets and MSCI Europe, are among the world's mostly broadly followed by institutional investors. While MSCI's licensing fees for use of its ACWI IMI indices as the basis of the Core Series ETFs are lower than its current blended average licensing fee with iShares, the terms of MSCI's licenses with respect to existing ETFs were not amended.
The MSCI ACWI Investable Market Index (IMI)captures large, mid and small cap representation across 24 Developed Markets (DM) and 21 Emerging Markets (EM) countries. The index is comprehensive, targeting coverage of approximately 99% of the global equity investment opportunity set, with a strong emphasis on liquidity, investability and replicability. MSCI indices are reviewed quarterly with the objective of reflecting changes in the underlying equity markets in a timely manner, while limiting undue index turnover.
MSCI Inc. is a leading provider of investment decision support tools to investors globally, including asset managers, banks, hedge funds and pension funds. MSCI products and services include indices, portfolio risk and performance analytics, and governance tools.
The company's flagship product offerings are: the MSCI indices with approximately USD 7 trillion estimated to be benchmarked to them on a worldwide basis1; Barra multi-asset class factor models, portfolio risk and performance analytics; RiskMetrics multi-asset class market and credit risk analytics; ISS governance research and outsourced proxy voting and reporting services; and FEA valuation models and risk management software for the energy and commodities markets. MSCI is headquartered in New York, with research and commercial offices around the world. MSCI#IR
1 As of June 30, 2011. Estimate based on eVestment, Lipper and Bloomberg data
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MSCI's indirect wholly-owned subsidiary Institutional Shareholder Services, Inc. ("ISS") is a Registered Investment Adviser under the Investment Advisers Act of 1940. Except with respect to any applicable products or services from ISS (including applicable products or services from MSCI ESG Research Information, which are provided by ISS), none of MSCI's products or services recommends, endorses, approves or otherwise expresses any opinion regarding any issuer, securities, financial products or instruments or trading strategies and none of MSCI's products or services is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.
The MSCI ESG Indices use ratings and other data, analysis and information from MSCI ESG Research. MSCI ESG Research is produced by ISS or its subsidiaries. Issuers mentioned or included in any MSCI ESG Research materials may be a client of MSCI, ISS, or another MSCI subsidiary, or the parent of, or affiliated with, a client of MSCI, ISS, or another MSCI subsidiary, including ISS Corporate Services, Inc., which provides tools and services to issuers. MSCI ESG Research materials, including materials utilized in any MSCI ESG Indices or other products, have not been submitted to, nor received approval from, the United States Securities and Exchange Commission or any other regulatory body.
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