MSCI Launches New Series of Barra Models

New Systematic Equity Strategies Series One of the First to Address Crowding Risk

Barra Japan is First Single-Country Model in the Series


TOKYO--(BUSINESS WIRE)-- MSCI Inc. (NYS: MSCI) , a leading provider of investment decision support tools worldwide, today announced the launch of a new series of single-country multi-factor models with Systematic Equity Strategies (SES), MSCI's new approach to risk modeling. SES factors help capture previously hidden sources of risk and return that managers bet on, which result in greater transparency within portfolios. They also improve the accuracy and explanatory power of a risk model, especially during periods of economic crisis. The Barra Japan Equity Model (JPE4) is the first model in the new SES series.

"Continued market uncertainty and volatility have led to greater demand from institutional investors for better risk management and MSCI's introduction of SES factors directly addresses this demand," said Mehmet Bayraktar, Head of MSCI Equity Analytics Research, who led the research initiative. "With this innovative new approach to risk modeling, portfolio managers can capture unique sources of risk, especially as they relate to crowding risk, and for the first time obtain more meaningful insight into the risk and return drivers of their proprietary strategy."

In addition to SES factors, JPE4 also includes Daily Model Update and Volatility Regime Adjustment features, which aid managers in forecasting risks that reflect the current market environment. The model also incorporates new Japanese data for better forecasting of local securities and has broad coverage of the Japanese equity market covering over 3,600 Japanese securities.

Peter Zangari, Managing Director of Equity Portfolio Management Analytics at MSCI said, "JPE4 offers an unprecedented view into new sources of risk across a broad set of securities in Japan. Its development, and the introduction of the Barra SES Series, is another important step in our mission to provide investors with the tools they seek to help them manage their portfolios."

Learn more about the Barra Japan Equity Model.

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 basis1; 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.

1 As 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 www.msci.com

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 MSCI Inc. or its subsidiaries (collectively, "MSCI"), or MSCI's licensors, direct or indirect suppliers or any third party involved in making or compiling any Information (collectively, with MSCI, the "Information Providers") 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.

The Information may not be used to create derivative works or to verify or correct other data or information. For example (but without limitation), the Information may not be used to create indices, databases, risk models, analytics, software, or in connection with the issuing, offering, sponsoring, managing or marketing of any securities, portfolios, financial products or other investment vehicles utilizing or based on, linked to, tracking or otherwise derived from the Information or any other MSCI data, information, products or services.

The user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. NONE OF THE INFORMATION PROVIDERS 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 APPLICABLE LAW, EACH INFORMATION PROVIDER 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 applicable law, in no event shall any Information Provider 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, including without limitation (as applicable), any liability for death or personal injury to the extent that such injury results from the negligence or willful default of itself, its servants, agents or sub-contractors.

Information containing any historical information, data or analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Past performance does not guarantee future results.

None of the Information constitutes an offer to sell (or a solicitation of an offer to buy), any security, financial product or other investment vehicle or any trading strategy.

You cannot invest in an index. MSCI does not issue, sponsor, endorse, market, offer, review or otherwise express any opinion regarding any investment or financial product that may be based on or linked to the performance of any MSCI index.

MSCI's 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, which are provided by ISS), neither MSCI nor any of its products or services recommends, endorses, approves or otherwise expresses any opinion regarding any issuer, securities, financial products or instruments or trading strategies and neither MSCI nor any of its 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 MSCI ESG 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.

Any use of or access to products, services or information of MSCI requires a license from MSCI. MSCI, Barra, RiskMetrics, IPD, ISS, FEA, InvestorForce, and other MSCI brands and product names are the trademarks, service marks, or 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, New York
Kristin Meza, + 1.212.804.5330
MSCI, London
Jo Morgan, + 44.20.7618.2224
MHP Communications, London
Sally Todd | Christian Pickel, + 44.20.3128.8515
or
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

KEYWORDS:   United States  Asia Pacific  North America  New York  Japan

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