MSCI Indices Q1 2013 Performance Results1

Wed Apr 3, 2013 5:03am EDT

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Global Equity Markets Deliver Solid Returns Overall, Continuing the Momentum of
2012

* Global markets posted significant positive returns, predominantly in developed
and frontier markets
* Emerging markets and Europe stumbled somewhat in comparison, exhibiting weaker
relative performance
* Small caps surpassed large and mid caps across most regions and countries,
maintaining the trend of 2012

LONDON--(Business Wire)--
MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools
worldwide, today published the Q1 2013 performance of its MSCI Global Equity
Indices, which showed strong positive returns for the most part, extending the
decisive rebound of global equities seen in 2012. For example, the MSCI ACWI
Investable Market Index (IMI), comprised of close to 9,000 large, mid and small
cap securities across 24 Developed and 21 Emerging Markets countries, delivered
a return of 6.38% for the quarter, on top of its 13.70% gain in 2012. 

Globally, small caps substantially outperformed mid and large cap segments over
the quarter. The MSCI ACWI Small Cap Index returned 9.27% in Q1 2013, for
instance, exceeding all other MSCI ACWI index capitalization segments: the MSCI
ACWI Mid Cap and MSCI ACWI Large Cap Indices posted Q1 returns of 7.43% and
5.66%, respectively. 

The MSCI ACWI IMI Health Care and MSCI ACWI IMI Consumer StaplesIndices
outperformed all other global sectors, returning 13.35% and 10.72% for the
quarter, respectively. Laggard sectors included the MSCI ACWI IMI Energy and
MSCI ACWI IMI Materials Indices which returned 3.43% and -4.41% for the period. 

Developed Markets

Most MSCI Developed Markets (DM) Indices delivered solid positive returns for Q1
2013, with the exception of Europe and the EMU. Two MSCI flagship indices-the
MSCI World Index and the MSCI EAFE Index-posted Q1 returns of 7.18% and 4.40%,
respectively. The lower performance of MSCI EAFE (which excludes North America)
was primarily due to the strength of the US equity market, as the MSCI USA Index
returned 10.08% in Q1. The MSCI Europe Index eked out a positive return of 2.05%
for the quarter,while the MSCI EMU Index posted a loss of -0.66%. Among the
highest performing DM countries, were the MSCI Greece, MSCI Ireland and MSCI
Japan Indices with returns of 14.02%, 11.43% and 10.82%, respectively-all
rebounding from fairly weak returns in 2012. The DM countries with Q1 losses
were primarily in the EMU. The lowest Q1 performers were the MSCI Spain and MSCI
Italy Indices (with losses of -6.44% and -9.77%, respectively), but even the
MSCI Germany Index lost some ground with a Q1 return of -0.08%. 

The MSCI DM Small Cap Indices outperformed their mid and large cap counterparts
across the majority of countries and regions in Q1 2013. The MSCI USA Small Cap
Index, for example, returned 12.53%, while the MSCI USA Large Cap Index returned
9.61% for the quarter. Similarly, the MSCI Europe Small Cap Index produced a Q1
return of 5.07% (nearly 2.5 times that of the MSCI Europe Index) and the MSCI
World Small Cap Index returned of 10.01% (nearly 1.4 times that of the MSCI
World Index). 

Emerging Markets

The MSCI Emerging Markets (EM) Indices posted largely negative returns relative
to both Developed and Frontier Markets. The MSCI Emerging Markets Index, for
example, returned -2.14% for the quarter. The MSCI BRIC Index also posted a Q1
loss, returning -3.21%. The single EM region to produce a positive Q1 return,
albeit slight, was the MSCI EM Latin America Index which returned 0.48% for the
quarter. The top performing EM country indices, however, showed robust double
digit returns for the quarter and included: the MSCI Philippines Index (17.87%)
and the MSCI Indonesia Index (13.19%). On the other hand, the MSCI Brazil, MSCI
India, MSCI Russia, MSCI China and MSCI Korea Indices all delivered negative Q1
results, with returns of -1.33%, -2.73%, -3.56%, -4.53%, and -4.65%,
respectively. 

Reinforcing the trend of global small cap dominance, the MSCI Emerging Markets
Small Cap Index outperformed its large- and mid-cap sibling (the MSCI Emerging
Markets Index), returning 3.63% for the quarter. 

Frontier Markets

The Q1 2013 performance results for MSCI Frontier Markets (FM) Indices were
largely positive. The MSCI Frontier Markets Index returned 6.87% for the
quarter. The MSCI Frontier Markets Africa Index was the top-performing regional
FM index with a Q1 return of 16.54%. Nine of the twenty-five single country FM
indices posted double digit returns for the quarter. The top three Q1 performers
included the MSCI Kenya, MSCI UAE and MSCI Bulgaria Indices which produced
returns of 27.56%, 24.12%, and 20.46%, respectively. Bottom performers were the
MSCI Bangladesh and MSCI Slovenia Indices with Q1 2013 returns of -4.14% and
-9.35% respectively. 

MSCI Risk Premia Indices

In general, the MSCI Minimum Volatility and Risk Weighted Indices outperformed
their parent indices in Q1 2013, while MSCI Value Weighted Indices tended to
slightly underperform their parents. 

Historical index levels for the full range of MSCI Global Equity Indices are
available at www.msci.com. 

1 All Q1 2013 index performance data are based on price index levels in USD for
the period 1 January - 29 March 2013. 

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. 

1As 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

Media Enquiries:
MSCI, London
Jo Morgan, +44.20.7618.2224
or
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 

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