MSCI Inc. (MSCI) fell the most on record after being dropped
as benchmark provider for 22 index funds by Vanguard Group Inc., the largest
U.S. mutual-fund company the good folks at Bloomberg report.
MSCI declined as much as 30 percent, the most since it went
public in November of 2007, after Vanguard said funds with about $537 billion
in assets will replace New York-based MSCI to cut costs for fund shareholders.
Vanguard will adopt benchmarks from FTSE Group for six
international stock index funds, and benchmarks developed by the University of
Chicago’s Center for Research in Security Prices for 16 U.S. equity and
balanced funds. The defection puts pressure on MSCI to lower the licensing fees
it charges to BlackRock (BLK)’s IShares unit, the biggest ETF provider,
according to David Nadig, director of research at San Francisco-based ETF
research firm IndexUniverse LLC.
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