NY-MSCI/FABRIC
20.12.2023 14:01:31 CET | Business Wire | Press release
MSCI Inc. (NYSE: MSCI), a leading provider of mission-critical decision support tools and services for the global investment community, today announced it has signed a purchase agreement to acquire Fabric, a wealth technology platform specializing in portfolio design, customization, and analytics for wealth managers and advisors.
Founded in 2019, Fabric was established to provide a previously underserved wealth management community with leading risk and portfolio design technology. Known for its rules-based portfolio construction tools and platform leveraging the MSCI Multi-Asset Class (MAC) Factor Model and MSCI Private Asset Model, Fabric is focused on providing wealth managers and advisors with a platform for modern portfolio design and risk assessment to customize portfolios and help individual investors achieve their unique financial objectives.
There is significant demand from wealth managers and advisors for institutional quality capabilities to build personalized client portfolios at scale and keep pace with evolving trends, risks, and opportunities across sustainability, climate, and more. The combination of MSCI’s total-portfolio toolkit and Fabric’s rules-based portfolio construction capabilities will help wealth managers and advisors streamline investment activities, enable a collaborative experience, report, and offer real-time delivery of insights to better serve their clients and bring more transparency to markets.
Through this deal, MSCI and Fabric’s combined offering will transform wealth managers’ abilities to consistently implement their investment guidance while meeting their client’s personal preferences and delivering customization at scale.
Jorge Mina, Head of Analytics, MSCI, said: “Today, MSCI offers wealth management tools for home office model portfolio construction, product due diligence, portfolio analysis, advisor goal-based planning, sales enablement proposals, and more. This combination with Fabric will not only enhance the use of our existing content and tools, but accelerate the development of new strategic functionalities related to rules-based portfolio construction. This transaction underscores MSCI’s commitment to expanding its market reach and offering a broader spectrum of solutions to meet the diverse needs of both institutional and individual investors.”
Govinda Quish, CEO and Co-Founder, Fabric, commented: “Fabric’s mission has always been focused on serving the global wealth management community by modernizing their approach to portfolio design and risk management. By bringing together our extensive data, systems, and teams, the combination of Fabric and MSCI aims to redefine how wealth managers design, manage, and optimize their clients’ portfolios.”
Rick Bookstaber, Co-Founder and Head of Risk, Fabric, added: “MSCI is a world leader in investment risk management solutions. Fabric has long leveraged MSCI’s leading factor models to power the platform’s risk/return decomposition, portfolio analysis, rebalancing optimization, and scenario analysis, as well as MSCI’s ESG and climate risk data. Together, we look forward to providing wealth managers and advisors with enhanced risk analysis capabilities that can help their clients achieve their investment objectives.”
The terms of the transaction were not disclosed, and the financial impact of the transaction is not expected to be material to MSCI. The transaction is expected to close next quarter, subject to customary closing conditions.
About MSCI Inc.
MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data, and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process. To learn more, please visit www.msci.com. MSCI#IR
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements relating to the planned acquisition and prospects for the newly acquired business. These forward-looking statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond MSCI’s control and that could materially affect actual results, levels of activity, performance or achievements.
Other factors that could materially affect actual results, levels of activity, performance or achievements can be found in MSCI’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the Securities and Exchange Commission (“SEC”) on February 10, 2023 and in quarterly reports on Form 10-Q and current reports on Form 8-K filed or furnished with the SEC. If any of these risks or uncertainties materialize, or if MSCI’s underlying assumptions prove to be incorrect, actual results may vary significantly from what MSCI projected. Any forward-looking statement in this press release reflects MSCI’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to MSCI’s operations, results of operations, growth strategy and liquidity. MSCI assumes no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise, except as required by law.
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