ETF Assets Tracking MSCI Indices Now Exceed USD 50 Billion

MSCI Barra is second largest index provider for index-linked ETF products

New York —

MSCI Barra, a leading provider of benchmark indices and risk management analytics products, is pleased to announce that assets in Exchange Traded Funds (ETFs) based on MSCI Equity Indices now exceed USD 50 Billion. To date, there are over 70 ETFs based on MSCI Equity Indices trading in the U.S., Europe and Asia. In the U.S., the MSCI International Equity Indices are the target indices for 30 ETFs with USD 47 billion in assets (as of October 4, 2005). In addition, the MSCI US Equity Indices form the basis of 18 ETFs with a total of USD 8.5 billion in assets.

"MSCI Equity Indices are being increasingly used as the basis of ETFs. This growth is based on MSCI Barra's longstanding position as the leading provider of international indices, and on our comprehensive suite of indices, which allow investors to allocate assets across regions and asset classes with a globally consistent approach. In addition MSCI Barra's use of investability screens are designed to enable ETF providers and others to track the index with relatively low costs," said Rabbe Ekholm, Managing Director at MSCI Barra. This increasing adoption of MSCI Indices is demonstrated by several facts:

  • MSCI International Equity Indices now form the basis of 90% of international equity ETF assets in the U.S.
  • In September 2005, the ETF tracking the MSCI EAFE® Index became the world's second largest ETF
  • Six of the top 10 ETFs launched in the U.S. in 2004 are based on MSCI US Equity Indices
About MSCI Barra

MSCI (www.msci.com) develops and maintains equity, REIT, fixed income, multi-asset class and hedge fund indices that serve as the benchmark for an estimated USD 3 trillion on a worldwide basis and owns Barra, Inc. ("Barra"). Barra analytics (www.barra.com) help the world's largest investors analyze, measure and manage portfolio and firm-wide investment risk. MSCI Barra is headquartered in New York, with research and commercial offices around the world. Morgan Stanley, a global financial services firm and a market leader in securities, asset management, and credit services, is the majority shareholder of MSCI, and Capital International Inc., part of the global investment management group of The Capital Group Companies, Inc., is the minority shareholder. MSCI Barra is a service mark of Morgan Stanley Capital International Inc. ("MSCI" or "MSCI Barra").

For further information on MSCI indices or MSCI data, please visit our web site at www.msci.com or contact:

Dorsey Horowitz, MSCI Barra, New York + 1 212 762 5790
Sonal Patel, MSCI Barra, London + 44 20 7425 6660
Sarah Chan, MSCI Barra, Hong Kong + 852 2848 6740
Masao Ikeda, MSCI Barra, Tokyo + 813 5424 5470
PR:
Ben Curson/Clare Rowsell, Penrose Financial, London + 44 20 7786 4888
Ann Taylor Reed, Abernathy MacGregor, New York + 1 212 371 5999

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