MSCI and Barclays Announce Partnership to Create Global ESG Fixed Income Indices
New Index Family Provides Environmental, Social & Governance Investment Strategies for Institutional Fixed Income Portfolios
NEW YORK--(BUSINESS WIRE)-- MSCI Inc. (NYSE: MSCI (MXB)), a leading provider of investment decision support tools worldwide, and Barclays, publisher of leading broad market bond benchmarks, announced today an agreement to create a family of co-branded Environmental, Social & Governance (ESG) fixed income indices. The combination of both organizations expertise will help institutional investors to apply ESG investment strategies to their bond portfolios.
The ESG fixed income indices will be co-branded and independently marketed by both firms. These indices will be aimed at asset owners and managers with ESG commitments, such as UN PRI (United Nations Principles for Responsible Investing) signatories, who have exposure to fixed income investments that require a benchmark which integrates ESG factors. Institutional clients will be able to use the ESG fixed income indices to create index-linked investment products, such as Exchange Traded Funds (ETFs), separately managed accounts, and structured products.
In the coming weeks, MSCI and Barclays will begin meeting with asset owners, asset managers and investment consultants to understand their plans for integrating ESG factors into their investment policies. The consultation process is intended to ascertain which ESG strategies are most relevant to investors and to define the methodologies of the new indices.
"As a leading provider of indices and analytics, Barclays continues to focus on innovation and so we are excited to work with MSCI, a clear leader in ESG research, to develop and offer a new market standard, said Waqas Samad, Head of Index, Portfolio and Risk Solutions at Barclays. This agreement brings our respective expertise in fixed income and ESG together to develop one product family.
Baer Pettit, Managing Director and Head of the MSCI Index Business, said, MSCI is very pleased to be working with Barclays to create a family of global ESG fixed income indices. The objective of MSCIs ESG business is to provide investors with tools to integrate ESG factors across a broad range of asset classes. Working together with Barclays, we expect these new benchmarks to fill a gap in the market and facilitate the growth of ESG investment.
With over 40 years of expertise in equity index construction and maintenance, MSCIs equity ESG indices enable clients to benchmark ESG investment performance, issue index-based ESG investment products, and report on their compliance with ESG mandates. MSCI is the only major index provider with in-house ESG research expertise.
The Barclays Indices platform has offered market-leading benchmarks and other index products since 1973, to meet the diverse needs of global investors including investment and market analysis of both alpha and beta sources, portfolio benchmarking and performance measurement, asset allocation, and the creation of index tracking funds and index-based structured products.
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 companys 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; MSCI ESG (environmental, social and governance) Research screening, analysis and ratings; ISS governance research and outsourced proxy voting and reporting services; FEA valuation models and risk management software for the energy and commodities markets; and CFRA forensic accounting risk research, legal/regulatory risk assessment, and duediligence. MSCI is headquartered in New York, with research and commercial offices around the world.
1As of June 30, 2011, based on eVestment, Lipper and Bloomberg data.
For further information on MSCI, please visit our web site at www.msci.com
Barclays moves, lends, invests and protects money for customers and clients worldwide. With over 300 years of history and expertise in banking, we operate in over 50 countries and employ over 140,000 people. We provide large corporate, government and institutional clients with a full spectrum of solutions to their strategic advisory, financing and risk management needs. Our clients also benefit from access to the breadth of expertise across Barclays. Were one of the largest financial services providers in the world, and are also engaged in retail banking, credit cards, corporate banking, and wealth and investment management.
Barclays offers premier investment banking products and services to its clients through Barclays Bank PLC.
For more information, visit www.barclays.com
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MSCIs indirect wholly-owned subsidiary Institutional Shareholder Services, Inc. (ISS) is a Registered Investment Adviser under the Investment Advisers Act of 1940. Except with respect to any applicable products or services from ISS (including applicable products or services from MSCI ESG Research Information, which are provided by ISS), none of MSCIs products or services recommends, endorses, approves or otherwise expresses any opinion regarding any issuer, securities, financial products or instruments or trading strategies and none of MSCIs 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 Barclays MSCI ESG fixed income indices use ratings and other data, analysis and information from MSCI ESG Research. MSCI ESG Research is produced by ISS or its subsidiaries. Issuers mentioned or included in any MSCI ESG Research materials may be a client of MSCI, ISS, or another MSCI subsidiary, or the parent of, or affiliated with, a client of MSCI, ISS, or another MSCI subsidiary, including ISS Corporate Services, Inc., which provides tools and services to issuers. MSCI ESG Research materials, including materials utilized in any MSCI ESG Indices or other products, have not been submitted to, nor received approval from, the United States Securities and Exchange Commission or any other regulatory body. Barclays MSC ESG fixed income indices are unmanaged indices that cannot be invested in directly. None of the Barclays MSC ESG Indices recommends, endorses, approves or otherwise expresses any opinion regarding any issuer, securities, financial products or instruments or trading strategies and none of the Barclays MSCI ESG fixed income indices 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. Any funds, products or other securities or investment vehicles using or based on the Barclays MSCI ESG fixed income indices are not sponsored, endorsed, or promoted by Barclays or MSCI.
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Source: BarclaysCopyright Business Wire 2012