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MSCI LAUNCHES FAMILY OF HEDGE FUND INDICES
New York, July 9, 2002. MSCI, a leading provider of global equity and fixed income indices used by institutional investors
worldwide, today announced the launch of the MSCI Hedge Fund IndicesSM. The new index family features more than 90
indices calculated monthly, supported by a growing database of over 750 hedge funds and an innovative, web-based analytical
tool. Today, the MSCI Hedge Fund Composite IndexSM includes over 350 hedge funds.
The indices are organized in accordance with a comprehensive classification framework - the MSCI Hedge Fund Classification
StandardSM that uses the investment process of hedge fund managers as the dominant characteristic to classify funds and
define strategy indices. The indices are equal weighted at all four levels of aggregation and asset weighted at the two highest
levels. They are also organized into three domicile families.
In a complex investment area that is difficult to measure and analyze, MSCI believes the indices offer transparency in index
construction and maintenance, a more comprehensive hedge fund classification framework, and an extensive and reliable fund
database that together can serve as a meaningful basis for conducting peer group analysis.
Our clients have expressed a strong interest in a global family of MSCI Hedge Fund Indices which would help them better
analyze performance characteristics of hedge fund strategies, said Henry Fernandez, President and CEO of MSCI. While it
is currently not possible to build hedge fund indices to the same level of comprehensiveness as equity indices, we believe we
have developed a product that will be useful to hedge fund investors.
Some of the key characteristics of the MSCI Hedge Fund Indices include:
• Transparency: MSCI is the first hedge fund index provider where the data of constituent hedge funds is available and
linked directly to the index, enabling qualifi