Barclays and MSCI Unveil Family of Global ESG Fixed Income Indices
Barclays and MSCI Unveil Family of Global ESG Fixed Income Indices
Benchmarks are first to be based on Environmental, Social & Governance (ESG) factors
Barclays and MSCI Inc. (NYSE: MSCI) today announced the launch of a global family of Environmental, Social & Governance (ESG) Fixed Income Indices, the first fixed income benchmark indices based primarily on ESG factors. The indices are co-branded “Barclays MSCI” and will be independently marketed by both firms.
The Barclays MSCI ESG Fixed Income Indices comprise more than 500 standard and bespoke indices representing the most widely used ESG strategies and investment objectives across three categories:
- Barclays MSCI Socially Responsible (SRI) Indices exclude issuers that engage in particular businesses activities that may be restricted for certain investors and are intended for investors whose investment selections are governed by values-based policies.
- Barclays MSCI Sustainability Indices apply a best-in-class methodology to select issuers (sovereign, corporate, and quasi-sovereign) with high ESG ratings relative to their peers. These indices are intended for investors who place a premium on companies’ sustainability strategies and believe ESG criteria can be applied to identify companies that are more effective in managing the ESG risks unique to their industry.
- Barclays MSCI ESG Weighted Indices use ESG ratings to systematically over- and under-weight issuers within a bond index using an objective rules-based approach. These indices are targeted toward universal owners whose investment strategies express a view on the financial impact that ESG factors will have on their investments.
These indices fill a critical gap in the market by providing asset owners and managers with ESG commitments, such as UN PRI (United Nations Principles for Responsible Investing) signatories, with a comprehensive series of performance benchmarks. Additionally, institutional investors will be able to leverage these indices to create index-linked investment products, such as Exchange Traded Funds (ETFs), separately managed accounts, and structured products, based on ESG investment themes.
Waqas Samad, Head of Index, Portfolio and Risk Solutions at Barclays said: “The Barclays MSCI ESG indices represent an important milestone in the growth of the ESG fixed income sector and reflect our ongoing commitment to expand our family of index products to meet the evolving needs of fixed income investors.”
Baer Pettit, Head of the MSCI Index Business, said: “We are very pleased to collaborate with Barclays to bring these innovative products to market. The new indices provide ESG investors with fixed income assets tools to support their asset allocation decisions, benchmark performance, conduct attribution analysis as well as the ability to offer active and passive funds. We expect the fixed income benchmarks to stimulate growth of ESG investment in this key asset class.”
Barclays is a major global financial services provider engaged in personal banking, credit cards, corporate and investment banking and wealth and investment management with an extensive international presence in Europe, the Americas, Africa and Asia. Barclays’ purpose is to help people achieve their ambitions – in the right way. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs approximately 140,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide. Barclays offers premier investment banking products and services to its clients through Barclays Bank PLC. For more information, visit www.barclays.com
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 basis*; 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.
*As of September 30, 2012, as published by eVestment, Lipper and Bloomberg on January 31, 2013
About MSCI ESG Research
MSCI ESG Research products and services are designed to provide in-depth research, ratings and analysis of environmental, social and governance-related business practices to companies worldwide. ESG ratings, data and analysis from MSCI ESG Research are also used in the construction of the MSCI ESG Indices. MSCI ESG Research is produced by MSCI’s indirect wholly-owned subsidiary Institutional Shareholder Services, Inc. (“ISS”). ISS is a Registered Investment Adviser under the Investment Advisers Act of 1940.
For further information on MSCI, please visit our web site at www.msci.com
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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 Information, which are provided by ISS), none of MSCI’s 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 MSCI’s 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 MSCI ESG Fixed Income Indices are unmanaged indices that cannot be invested in directly. None of the Barclays MSCI ESG Fixed Income Indices recommend, endorse, approve or otherwise express any opinion regarding any issuer, securities, financial products or instruments or trading strategies and none of the Barclays MSCI ESG Fixed Income Indices are 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.
Any use of or access to the Barclays MSCI ESG Fixed Income Indices requires a license from both MSCI and Barclays. Any use of or access to other index products, services or information of Barclays requires a license from Barclays. Any use of or access to products, services or information of MSCI requires a license from MSCI. MSCI, Barra, RiskMetrics, ISS, CFRA, FEA, 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.
Barclays, New York
Brandon Ashcraft, +1-212-412-7549
Jodie Gray, +44-20-7773-4803
MSCI, New York
Kristin Meza, +1-212-804-5330
MSCI ESG Research, London
Martina Macpherson, +44-20-7618-2224
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