GLOBAL - Index provider MSCI Barra's plan to update and upgrade the methodology behind its investable indices, adding 28,000 new indices in the process, was formally announced today.
Said Henry Fernandez, CEO and president of MSCI Barra: “The changes announced today demonstrate that as markets and investment processes continue to evolve, MSCI Barra remains committed to enhancing the MSCI International Indices to provide the benchmark tools investors need for global asset allocation, mandate attribution, portfolio construction, and performance evaluation”.
MSCI’s COO, London-based David Brierwood, commented: “This is the result of almost a two-year consultation with the entire institutional money management industry, because we recognise that our aim is to mimic what the needs of institutions are.
“The universe of things we consider has gone from 85% of market coverage to 99% of market coverage… There’s a set of interlocking and consistent indices that cover whatever segment of the investment universe is your objective, whether it be style, industry or sector.”
The MSCI Global Investable Market Indices methodology includes a plan to transition the MSCI standard and small cap indices to the methodology and will be implemented in two stages, on 30 November 2007 and 30 May 2008.
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