MSCI Announces New License for MSCI ACWI Investable Market Indices
NEW YORK -- October 17, 2012
MSCI Inc. (NYSE: 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
fromMSCI’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 basis^1; 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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