MSCI Announces New License for MSCI ACWI Investable Market Indices
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
For further information on MSCI, please visit our web site atwww.msci.com
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," or "continue", or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance, or achievements.
Other factors that could materially affect actual results, levels of activity, performance or achievements can be found in MSCI's Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and filed with the Securities and Exchange Commission (SEC) on February 29, 2012, and in quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC. If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement in this release reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise.
This document and all of the information contained in it, including without limitation all text, data, graphs, charts (collectively, the "Information") is the property of MSCI Inc. or its subsidiaries (collectively, "MSCI"), or MSCI's licensors, direct or indirect suppliers or any third party involved in making or compiling any Information (collectively, with MSCI, the "Information Providers") and is provided for informational purposes only. The Information may not be reproduced or redisseminated in whole or in part without prior written permission from MSCI.
The Information may not be used to create derivative works or to verify or correct other data or information. For example (but without limitation), the Information many not be used to create indices, databases, risk models, analytics, software, or in connection with the issuing, offering, sponsoring, managing or marketing of any securities, portfolios, financial products or other investment vehicles utilizing or based on, linked to, tracking or otherwise derived from the Information or any other MSCI data, information, products or services.
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None of the Information constitutes an offer to sell (or a solicitation of an offer to buy), any security, financial product or other investment vehicle or any trading strategy.
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.
Any use of or access to products, services or information of MSCI requires a license from MSCI. MSCI, Barra, RiskMetrics, ISS, CFRA, FEA, and other MSCI brands and product names are the trademarks, service marks, or registered trademarks of MSCI or its subsidiaries in the United States and other jurisdictions. The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and Standard & Poor's. "Global Industry Classification Standard (GICS)" is a service mark of MSCI and Standard & Poor's.
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