MSCI Barra (NYSE:MXB), a leading provider of investment decision support tools worldwide, including indices and portfolio analytics, announced today that it will launch a new family of benchmark indices covering 19 Frontier Market countries, and a new tradable index for Asia – the MSCI Asia APEX 50 Index. The announcement follows consultations with market participants around the world.
“Our decision to launch the MSCI Frontier Markets Indices reflects the growing interest from international investors in these equity markets, as they look beyond existing developed and emerging markets in their search for new investment opportunities," said Henry Fernandez, Chairman and CEO of MSCI Barra. "The MSCI Asia APEX 50 Index is being launched in response to investor demand for a tradable index based on the MSCI AC Asia ex Japan Index. As the individual country markets across Asia have become more accessible, the demand for index linked products based on the region has increased,” he added.
The MSCI Frontier Markets Indices will cover 19 countries:
Central and Eastern Europe & CIS (Commonwealth of Independent States): Bulgaria, Croatia, Estonia, Kazakhstan, Romania, Slovenia and Ukraine
Africa: Kenya, Mauritius, Nigeria and Tunisia
Middle East: Bahrain, Kuwait, Oman, Qatar, the United Arab Emirates and Lebanon
Asia: Sri Lanka and Vietnam
MSCI Barra will continue to monitor potential markets that may qualify for the MSCI Frontier Markets Indices on a semi-annual basis, during the May and November Semi-Annual Index Reviews. Additional Frontier Markets that could be considered during the May 2008 Semi-Annual Index Review include, among others:
Central and Eastern Europe & CIS: Georgia, Latvia, Lithuania and Serbia
Latin America & Caribbean: Jamaica and Trinidad & Tobago
In addition, MSCI Barra will provide a series of new regional and global composite indices that combine the MSCI Frontier Markets Indices with the existing MSCI Emerging Markets and MSCI All Country Indices. The resulting indices will include the MSCI Emerging and Frontier Markets (EFM) Index and the MSCI All Country World and Frontier Markets (ACWI FM) Index.
The MSCI Asia APEX 50 Index will consist of the 50 largest stocks by market capitalization in Asia excluding Japan, optimized for tradability. The index is designed to serve as the basis for investment products such as exchange traded and OTC derivative products, exchange traded funds and other passive vehicles.
Calculation of both the MSCI Frontier Markets Indices and the MSCI Asia APEX 50 Index will start as of the close of November 30, 2007. On December 18, 2007, index levels and returns will be made available via www.mscibarra.com. Constituent data for the MSCI Asia APEX 50 Index will also be made available via the website on this date. Constituent data for the MSCI Frontier Markets Indices will be made available to eligible clients on request.
The indices will be added to the existing MSCI index products and most vendor platforms in February 2008.
About MSCI Barra
MSCI Barra is a leading provider of investment decision support tools to investment institutions worldwide. MSCI Barra products include indices and portfolio analytics for use in managing equity, fixed income and multi-asset class portfolios.
The company’s flagship products are the MSCI International Equity Indices, which are estimated to have over
USD 3 trillion benchmarked to them, and the Barra risk models and portfolio analytics, which cover 56 equity and 46 fixed income markets. MSCI Barra is headquartered in New York, with research and commercial offices around the world. Morgan Stanley, a global financial services firm, is the majority shareholder of MSCI Barra.
MSCI Barra was voted “Index Provider of the Year” at the 2007 Global Pensions Magazine Awards.
For further information on MSCI Barra, please visit our web site at www.mscibarra.com.
For media enquiries please contact:
Sally Todd | Clare Milton, Penrose Financial, London + 44.20.7786.4888
Pen Pendleton | Ann Taylor Reed, Abernathy MacGregor, New York + 1.212.371.5999
MSCI Barra Global Client Service:
Aatish Suchak, MSCI Barra, London + 44.20.7618.2222
Izabella Goldenberg, MSCI Barra, New York + 1.212.762.5790
Jackson Wang, MSCI Barra, San Francisco + 1.415.576.2323
Alick Lei, MSCI Barra, Hong Kong + 852.2848.7333
Pavithra Ramasubban, MSCI Barra, Sydney + 61.2.9220.9333
Masao Ikeda, MSCI Barra, Tokyo + 813.5424.5470
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 MSCl Inc. (“MSCI”), Barra, Inc. (“Barra”), or their affiliates (including without limitation Financial Engineering Associates, Inc.) (alone or with one or more of them, “MSCI Barra”), or their direct or indirect suppliers or any third party involved in the making or compiling of the Information (collectively, the “MSCI Barra Parties”), as applicable, 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 or Barra, as applicable.
The Information may not be used to verify or correct other data, to create indices, risk models or analytics, or in connection with issuing, offering, sponsoring, managing or marketing any securities, portfolios, financial products or other investment vehicles based on, linked to, tracking or otherwise derived from any MSCI or Barra product or data.
Historical data and analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction.
None of the Information constitutes an offer to sell (or a solicitation of an offer to buy), or a promotion or recommendation of, any security, financial product or other investment vehicle or any trading strategy, and none of the MSCI Barra Parties endorses, approves or otherwise expresses any opinion regarding any issuer, securities, financial products or instruments or trading strategies. None of the Information, MSCI Barra indices, models or other 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 user of the Information assumes the entire risk of any use it may make or permit to be made of the Information.
In particular, historical data and analysis should not be taken as an indication or guarantee of any future performance, analysis or prediction.
NONE OF THE MSCI BARRA PARTIES MAKES ANY EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS WITH RESPECT TO THE INFORMATION (OR THE RESULTS TO BE OBTAINED BY THE USE THEREOF), AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, MSCI AND BARRA, EACH ON THEIR BEHALF AND ON THE BEHALF OF EACH MSCI BARRA PARTY, HEREBY EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES (INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF ORIGINALITY, ACCURACY, TIMELINESS, NON-INFRINGEMENT, COMPLETENESS, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE) WITH RESPECT TO ANY OF THE INFORMATION.
Without limiting any of the foregoing and to the maximum extent permitted by law, in no event shall any of the MSCI Barra Parties have any liability regarding any of the Information for any direct, indirect, special, punitive, consequential (including lost profits) or any other damages even if notified of the possibility of such damages. The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited.
Any use of or access to products, services or information of MSCI or Barra or their subsidiaries requires a license from MSCI or Barra, or their subsidiaries, as applicable. MSCI, Barra, MSCI Barra, EAFE, Aegis, Cosmos, BarraOne, and all other MSCI and Barra product names are the trademarks, registered trademarks, or service marks of MSCI, Barra or their affiliates, 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.
The governing law applicable to these provisions is the substantive law of the State of New York without regard to its conflict or choice of law principles.