MSCI Launches New Quality Mix Indices

  MSCI Launches New Quality Mix Indices

 Indices Represent Combined Performance of Quality, Value and Low Volatility

Business Wire

LONDON -- August 5, 2013

MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support
tools worldwide, has launched the MSCI Quality Mix Indices, which combine the
MSCI Quality, MSCI Value Weighted and MSCI Minimum Volatility Indices into one
diversified risk premia index.

“We are delighted to bring to the market a set of new indices designed to
reflect the beta represented by combining quality with value and low
volatility strategies,” said Baer Pettit, Managing Director and Global Head of
the MSCI Index Business. “The new MSCI Quality Mix Indices are another example
of our ability to deliver innovative index tools to meet the increasingly
sophisticated needs of our clients.”

Many active strategies emphasize quality, value and low volatility as
important factors in their security selection and portfolio construction.
Whilst these active strategies typically go beyond passive exposure to
quality, value and low volatility securities to include active stock selection
and the use of leverage, their beta component could be represented by the
quality, value and low volatility risk premia. Recent empirical academic
research has shown that stocks with high quality, value and low volatility
characteristics have historically provided higher long-term risk-adjusted
return (for example, see the analysis between 1976-2011 in a study by
Frazzini, Kabiller and Pedersen, published in 2012, titled ‘Buffett’s Alpha’).

The MSCI Quality Mix Indices aim to represent the performance of quality,
value and low volatility risk premia strategies across global markets in a
single composite index. Between 1988 and 2013, based on simulated historical
index data, the MSCI World Quality Mix Index delivered an annualized total
return of 9.8% versus 7.3% for the MSCI World Index, with a total risk^1 of
13.2% versus 15.4% for the MSCI World Index, resulting in a better long-term
risk-adjusted return for the MSCI World Quality Mix Index during this time
period. The risk and return characteristics of the MSCI Quality Mix Indices,
including the factor exposures, can be found on

The following MSCI Quality Mix Indices are now available:

1. MSCI ACWI Quality Mix Index
2. MSCI World ex USA Quality Mix Index
3. MSCI Emerging Markets Quality Mix Index
4. MSCI Europe Quality Mix Index
5. MSCI World Quality Mix Index
6. MSCI USA Quality Mix Index
7. MSCI AC Asia ex Japan Quality Mix Index
8. MSCI UK Quality Mix Index
9. MSCI Japan Quality Mix Index

The MSCI Quality Mix Indices are constructed according to a transparent index
methodology which equally weights the three component indices: the MSCI
Quality Index, the MSCI Value Weighted Index and the MSCI Minimum Volatility
Index. They may be licensed for use as benchmarks or as the basis for
financial products such as exchange traded funds and structured products.

^1 as measured by the annualized standard deviation of monthly returns

About MSCI

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 basis^1;
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 at

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You cannot invest in an index. MSCI does not issue, sponsor, endorse, market,
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MSCI’s indirect wholly-owned subsidiary Institutional Shareholder Services,
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The MSCI ESG Indices use ratings and other data, analysis and information from
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Issuers mentioned or included in any MSCI ESG Research materials may be a
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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.


Media Enquiries:
MSCI, London
Jo Morgan, + 44.20.7618.2224
MSCI, New York
Kristin Meza, + 1.212.804.5330
MHP Communications, London
Sally Todd | Christian Pickel, + 44.20.3128.8515
MSCI Global Client Service:
EMEA Client Service, + 44.20.7618.2222
Americas Client Service, 1.888.588.4567 (toll free)/+ 1.212.804.3901
Asia Pacific Client Service, + 852.2844.9333
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