Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Vanguard Says MSCI Move Not Related to Suit Not Rated 3.0 Email Routing List Email & Route  Print Print
Thursday, April 3, 2003

Vanguard Says MSCI Move Not Related to Suit

by: Sean Hanna, Editor in Chief

Vanguard has officially cut its ties to Standard & Poor's (S&P) for some of its largest index funds. Yet the Valley Forge-based fund firm insists that its decision to license indices from Morgan Stanley Capital International (MSCI) would have happened even if it had not had its dispute with S&P. Vanguard signed a deal to license the MSCI benchmarks last summer, but did not reveal specifics of its plans until today.

The firm confirmed that it is changing from S&P to MSCI created bogeys on six of its index funds. A seventh fund will be recalibrated against an MSCI index rather than one created by Frank Russell. Vanguard will continue to offer two funds based on S&P indices.

Vanguard said that the change was part of an effort to find indexes that best reflect their market segment and is not fallout from a legal fight the fund firm had with S&P nearly three years ago. That fight arose when Vanguard sought to launch its VIPER ETFs under the same contract by which it licensed the indexes for its mutual funds. McGraw-Hill, S&P's corporate parent, fought back, claiming that the ETFs were new funds, not just new share classes and that Vanguard had to pay additional licensing fees.

McGraw-Hill won the case in a November, 2001 ruling in which the judge found that Vanguard must pay the higher fees.

"The MSCI indexes incorporate most of the best practices we seek in market benchmarks, and we expect them to reflect the performance of the funds' targeted market segments more accurately than any other available index," said Gus Sauter, head of Vanguard's quantitative equity group, in a statement.

Vanguard argued that the new indices should result in efficiencies and lower costs for shareholders.

Vanguard expects to move the funds to the new benchmarks sometime between April 20 and September 30. The funds moving are: Mid-Cap Index; Value Index; Growth Index; Small-Cap Index; Small-Cap Value Index; Small-Cap Growth Index; and Variable Insurance Mid-Cap Index Portfolio.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

3.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2025: Q3Q2Q1
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly


    Sorry, no records in the database matched your search parameters. Clich back and try again.



  1. Nicsa webinar - New research by Alex Edmans and the Diversity Project - The Power of diverse thinking: How the best teams make decisions, July 1
  2. MFDF Director Discussion Series - Open Forum, July 9
  3. MFDF webinar - Mid-Year Tax Update for Registered Investment Companies, July 10
  4. MFDF Director Discussion Series - Open Forum (Philadelphia), July 15
  5. 2025 MMI Women in Advisory Solutions Forum, Jul 15-16
  6. Nicsa webinar - How Trusted GenAI is Transforming Data Access in Asset Management, July 16
  7. MFDF webinar - M&A and Consolidation in Asset Management, July 16
  8. MFDF webinar - ETF Conversions, July 17
  9. MFDF Director Discussion Series - Open Forum (New York), July 22
  10. MFDF Ask Anything webinar - AI Edition, July 24
  11. MFDF webinar - Use of Derivatives by RICs, July 29
  12. MFDF Director Discussion Series - Open Forum (Columbus, Ohio), August 20
  13. Samfund Soiree Boston 2025, August 21
  14. MFDF webinar - The Audit Committee Chair's Guide to Balancing Duties and Emerging Issues, September 3
  15. ICI ETF Conference, Sep 8-10
  16. Nicsa webinar - Reimagining Reconciliation: AI, Regulation, and Capital Markets Transformation, September 10
  17. MFDF webinar - Series Trust Funds - Compliance and Board Reporting, September 10
  18. MFDF In Focus - Board Oversight of DEI in Current Landscape, September 11
  19. MFDF webinar - MFDF 15(c) White Paper Webinar Series: Part 4 – Enforcement Action Takeaways, September 16
  20. MFDF webinar - Latest in Closed-End Funds Litigations, September 23
  21. MFDF webinar - Fixed Income Insights: Navigating Market Trends & Opportunities, September 24
  22. MFDF webinar - Risk Management Essentials for RICs and Boards, September 29
  23. MFDF webinar - Diligent - Tools for Fund Board Book, October 1
  24. 10th annual Fuse Forum, October 8
  25. MFDF webinar - Essential Strategies in Board Oversight of Operational Risk Management, October 14
  26. 2025 MMI Annual Conference, Oct 15-17




©All rights reserved to InvestmentWires, Inc. 1997-2025
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use