MSCI Launches Daily Hedged Indices
MSCI Launches Daily Hedged Indices
Extends existing line-up of hedging and currency indices
NEW YORK--(BUSINESS WIRE)-- MSCI Inc. (NYS: MSCI) , a leading provider of investment decision support tools worldwide, announced today the launch of new daily hedged indices, as part of the MSCI Hedging and Currency Indices family. The MSCI Daily Hedged and MSCI Hedged Indices aim to represent the returns of an MSCI parent equity index with its currency risk hedged back to a single "home country" currency. The index methodology seeks to reduce the return effects of currency fluctuations in the parent index.
The MSCI Daily Hedged Indices hedge each foreign currency in the index back to the home currency by "selling" each foreign currency forward at the TN (tomorrow next) forward rate each day.
"Daily hedged indices are used strategically by investors who may want to gain exposure to foreign equity markets, but who also want to mitigate the risk of currency fluctuations," said Diana Tidd, Managing Director and Head of the MSCI Index Business in the Americas.
The MSCI Daily Hedged Indices aim to track the parent index in local currency terms more closely than the MSCI Hedged Indices which are hedged on a monthly basis; however, they incur the expense of more frequent hedging.
MSCI Inc. is a leading provider of investment decision support tools to investors globally, including asset managers, banks, hedge funds and pension funds. MSCI products and services include indices, portfolio risk and performance analytics, and governance tools.
The company's flagship product offerings are: the MSCI indices with close to USD 7 trillion estimated to be benchmarked to them on a worldwide basis1; Barra multi-asset class factor models, portfolio risk and performance analytics; RiskMetrics multi-asset class market and credit risk analytics; IPD real estate information, indices and analytics; MSCI ESG (environmental, social and governance) Research screening, analysis and ratings; ISS governance research and outsourced proxy voting and reporting services; and FEA valuation models and risk management software for the energy and commodities markets. MSCI is headquartered in New York, with research and commercial offices around the world.
1 As of September 30, 2012, as published by eVestment, Lipper and Bloomberg on January 31, 2013
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None of the Information constitutes an offer to sell (or a solicitation of an offer to buy), any security, financial product or other investment vehicle or any trading strategy.
You cannot invest in an index. MSCI does not issue, sponsor, endorse, market, offer, review or otherwise express any opinion regarding any investment or financial product that may be based on or linked to the performance of any MSCI index.
MSCI's indirect wholly-owned subsidiary Institutional Shareholder Services, Inc. ("ISS") is a Registered Investment Adviser under the Investment Advisers Act of 1940. Except with respect to any applicable products or services from ISS (including applicable products or services from MSCI ESG Research, which are provided by ISS), neither MSCI nor any of its products or services recommends, endorses, approves or otherwise expresses any opinion regarding any issuer, securities, financial products or instruments or trading strategies and neither MSCI nor any of its products or services is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.
The MSCI ESG Indices use ratings and other data, analysis and information from MSCI ESG Research. MSCI ESG Research is produced by ISS or its subsidiaries. Issuers mentioned or included in any MSCI ESG Research materials may be a client of MSCI, ISS, or another MSCI subsidiary, or the parent of, or affiliated with, a client of MSCI, ISS, or another MSCI subsidiary, including ISS Corporate Services, Inc., which provides tools and services to issuers. MSCI ESG Research materials, including materials utilized in any MSCI ESG Indices or other products, have not been submitted to, nor received approval from, the United States Securities and Exchange Commission or any other regulatory body.
Any use of or access to products, services or information of MSCI requires a license from MSCI. MSCI, Barra, RiskMetrics, IPD, ISS, FEA, InvestorForce, and other MSCI brands and product names are the trademarks, service marks, or registered trademarks of MSCI or its subsidiaries in the United States and other jurisdictions. The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and Standard & Poor's. "Global Industry Classification Standard (GICS)" is a service mark of MSCI and Standard & Poor's.
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