Fabric’s flexible wealth technology combined
with MSCI’s investment portfolio solutions will help streamline
portfolio construction and sales enablement to bring customization
at scale to the global wealth management industry
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
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“continue,” or the negative of these terms or other comparable
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statements because they involve known and unknown risks,
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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
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uncertainties and assumptions relating to MSCI’s operations,
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