NEW YORK--(BUSINESS WIRE)--
MSCI Inc. (NYSE: MSCI), a leading global provider of investment decision
support tools, including indices, portfolio risk and performance
analytics and corporate governance services, commented today on
Vanguard's decision to change the target benchmarks of 22 exchange
traded funds (ETFs) from MSCI's equity indices and addressed the
anticipated impact of this transition on its future financial results.
Baer Pettit, Head of MSCI's Index Business, said, "We are disappointed
that Vanguard will no longer use our indices as the basis for these
exchange traded funds. The ETF market in North America is competitive
and as it evolves, we will work with those ETF providers who seek to
utilize independent, well-respected, and high-quality equity indices in
their products. MSCI indices have been developed over 40 years to meet
the specific needs of the world's most demanding and sophisticated
investors."
MSCI indices are a widely accepted tool for measuring global equity
performance and there are approximately $7 trillion(1) in
total assets benchmarked to MSCI indices worldwide. In the United
States, for example, more than 90% of all cross-border fundings by
tax-exempt funds are benchmarked to MSCI indices(2). MSCI's
All Country World Index (ACWI) is increasingly being used as a benchmark
for measuring total equity market performance by pension funds. Over the
first nine months of 2012, ETF providers around the world have launched
a total of 57 new ETFs linked to MSCI indices, including all of MSCI's
flagship indices.
Henry A. Fernandez, Chairman and CEO of MSCI, commented, "MSCI is a
provider of a diverse set of investment-decision tools to more than
6,000 clients worldwide. The strategic decisions we have made over the
past several years to diversify and enhance our product offering and our
client base have made MSCI a market leader in indices, portfolio risk
and performance analytics and corporate governance products and
services."
The Vanguard funds being transitioned include $131 billion of AUM (3)
in 14 ETFs benchmarked to MSCI's U.S. equity indices and 8 ETFs linked
to MSCI's global equity indices. MSCI understands that Vanguard will
begin to transition these funds in January 2013 and the transitions will
be staggered over a number of months. MSCI's annualized revenue and
operating income associated with the Vanguard funds being transitioned
are approximately $24 million. The impact to reported financial results
is expected to start in January 2013 as the funds are transitioned.
Conference Call Information
Henry A. Fernandez, Chairman and Chief Executive Officer and Robert
Qutub, Chief Financial Officer of MSCI, will host a conference call on
this topic on Tuesday, October 2, 2012 at 11:00 am Eastern Time. To
listen to the live event, visit the investor relations section of MSCI's
website, http://ir.msci.com/events.cfm,
or dial 1-877-312-9206 within the United States. International callers
dial 1-408-774-4001.
An audio recording of the conference call will be available on our
website approximately two hours after the conclusion of the live event
and will be accessible through October 8, 2012. To listen to the
recording, visit http://ir.msci.com/events.cfm,
or dial 1-855-859-2056 (passcode: 37418993) within the United States.
International callers dial 1-404-537-3406 (passcode: 37418993).
About MSCI Inc.
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, based on eVestment, Lipper
and Bloomberg data
2 InterSec research 2012 — U.S. tax-exempt funds
only
3 All AUM figures referenced herein are as of
September 28, 2012
For further information on MSCI Inc. or our products please visit www.msci.com.
Forward-Looking Statements
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.
Notes Regarding the Use of Non-GAAP Financial Measures
MSCI has presented supplemental non-GAAP financial measures as part of
this press release. These measures are used by management to monitor the
financial performance of the business, inform business decision making
and forecast future results.
MSCI Inc.:
MSCI, New York
Edings Thibault,
+1-212-804-5273
or
Media:
Abernathy MacGregor, New
York
Patrick Clifford or Nick Connors, +1-212-371-5999
or
MHP
Communications, London
Sally Todd or Jennifer Spivey,
+44-20-3128-8100
Source: MSCI Inc.
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