MSCI Indices Q1 2013 Performance Results1
Global Equity Markets Deliver Solid Returns Overall, Continuing the Momentum of 2012
Global markets posted significant positive returns, predominantly in developed and frontier markets
Emerging markets and Europe stumbled somewhat in comparison, exhibiting weaker relative performance
Small caps surpassed large and mid caps across most regions and countries, maintaining the trend of 2012
LONDON--(BUSINESS WIRE)-- MSCI Inc. (NYS: MSCI) , a leading provider of investment decision support tools worldwide, today published the Q1 2013 performance of its MSCI Global Equity Indices, which showed strong positive returns for the most part, extending the decisive rebound of global equities seen in 2012. For example, the MSCI ACWI Investable Market Index (IMI), comprised of close to 9,000 large, mid and small cap securities across 24 Developed and 21 Emerging Markets countries, delivered a return of 6.38% for the quarter, on top of its 13.70% gain in 2012.
Globally, small caps substantially outperformed mid and large cap segments over the quarter. The MSCI ACWI Small Cap Index returned 9.27% in Q1 2013, for instance, exceeding all other MSCI ACWI index capitalization segments: the MSCI ACWI Mid Cap and MSCI ACWI Large Cap Indices posted Q1 returns of 7.43% and 5.66%, respectively.
The MSCI ACWI IMI Health Care and MSCI ACWI IMI Consumer StaplesIndices outperformed all other global sectors, returning 13.35% and 10.72% for the quarter, respectively. Laggard sectors included the MSCI ACWI IMI Energy and MSCI ACWI IMI Materials Indices which returned 3.43% and -4.41% for the period.
Most MSCI Developed Markets (DM) Indices delivered solid positive returns for Q1 2013, with the exception of Europe and the EMU. Two MSCI flagship indices—the MSCI World Index and the MSCI EAFE Index—posted Q1 returns of 7.18% and 4.40%, respectively. The lower performance of MSCI EAFE (which excludes North America) was primarily due to the strength of the US equity market, as the MSCI USA Index returned 10.08% in Q1. The MSCI Europe Index eked out a positive return of 2.05% for the quarter,while the MSCI EMU Index posted a loss of -0.66%. Among the highest performing DM countries, were the MSCI Greece, MSCI Ireland and MSCI Japan Indices with returns of 14.02%, 11.43% and 10.82%, respectively—all rebounding from fairly weak returns in 2012. The DM countries with Q1 losses were primarily in the EMU. The lowest Q1 performers were the MSCI Spain and MSCI Italy Indices (with losses of -6.44% and -9.77%, respectively), but even the MSCI Germany Index lost some ground with a Q1 return of -0.08%.
The MSCI DM Small Cap Indices outperformed their mid and large cap counterparts across the majority of countries and regions in Q1 2013. The MSCI USA Small Cap Index, for example, returned 12.53%, while the MSCI USA Large Cap Index returned 9.61% for the quarter. Similarly, the MSCI Europe Small Cap Index produced a Q1 return of 5.07% (nearly 2.5 times that of the MSCI Europe Index) and the MSCI World Small Cap Index returned of 10.01% (nearly 1.4 times that of the MSCI World Index).
The MSCI Emerging Markets (EM) Indices posted largely negative returns relative to both Developed and Frontier Markets. The MSCI Emerging Markets Index, for example, returned -2.14% for the quarter. The MSCI BRIC Index also posted a Q1 loss, returning -3.21%. The single EM region to produce a positive Q1 return, albeit slight, was the MSCI EM Latin America Index which returned 0.48% for the quarter. The top performing EM country indices, however, showed robust double digit returns for the quarter and included: the MSCI Philippines Index (17.87%) and the MSCI Indonesia Index (13.19%). On the other hand, the MSCI Brazil, MSCI India, MSCI Russia, MSCI China and MSCI Korea Indices all delivered negative Q1 results, with returns of -1.33%, -2.73%, -3.56%, -4.53%, and -4.65%, respectively.
Reinforcing the trend of global small cap dominance, the MSCI Emerging Markets Small Cap Index outperformed its large- and mid-cap sibling (the MSCI Emerging Markets Index), returning 3.63% for the quarter.
The Q1 2013 performance results for MSCI Frontier Markets (FM) Indices were largely positive. The MSCI Frontier Markets Index returned 6.87% for the quarter. The MSCI Frontier Markets Africa Index was the top-performing regional FM index with a Q1 return of 16.54%. Nine of the twenty-five single country FM indices posted double digit returns for the quarter. The top three Q1 performers included the MSCI Kenya, MSCI UAE and MSCI Bulgaria Indices which produced returns of 27.56%, 24.12%, and 20.46%, respectively. Bottom performers were the MSCI Bangladesh and MSCI Slovenia Indices with Q1 2013 returns of -4.14% and -9.35% respectively.
MSCI Risk Premia Indices
In general, the MSCI Minimum Volatility and Risk Weighted Indices outperformed their parent indices in Q1 2013, while MSCI Value Weighted Indices tended to slightly underperform their parents.
Historical index levels for the full range of MSCI Global Equity Indices are available at www.msci.com.
1 All Q1 2013 index performance data are based on price index levels in USD for the period 1 January - 29 March 2013.
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 close to 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; IPD real estate information, indices and analytics; MSCI ESG (environmental, social and governance) Research screening, analysis and ratings; 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.
1As of September 30, 2012, as published by eVestment, Lipper and Bloomberg on January 31, 2013.
For further information on MSCI, please visit our web site atwww.msci.com
Jo Morgan, +44.20.7618.2224
MHP Communications, London
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