The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.
MSCI
MSCI, which provides
investment indices, has launched MSCI Private Capital Indexes,
which capture returns and other data from global markets, a
rising area of interest for wealth managers and other
investors.
Covering private equity, private credit, private real estate,
private infrastructure, and private natural resources, these 130
Indexes complement MSCI’s over 80 existing real asset fund and
property indexes.
This publication asked MSCI about the significance of the new
indices.
“Leveraging MSCI’s transparent methodologies and reputation for
rigorously verified data, the indexes are constructed from a
broad universe of private capital funds with over $11 trillion in
capitalisation,” Charissa Smith, co-head of Private Assets
at MSCI, said. “Institutional investors are increasingly looking
to private assets to help meet their investment mandates. In the
wealth space, this trend underscores the need for education and
democratisation of private assets.”
“The growth in their private asset allocations increases demand
for transparency, insights and analytics. MSCI’s client base of
asset owners, asset managers, banks, wealth managers, hedge
funds, insurance firms and others therefore have growing needs
for private asset insights, standards, and decision tools. The
indexes are designed to help inform asset allocation to asset
classes and individual managers, compare your [their] performance
against the broader market and against peer groups, and assist in
meeting obligations based on the strategic goals of
stakeholders,” Smith continued.
“These indexes provide a panoramic view of private capital
investments, as they are constructed from a dataset that is
entirely LP-sourced and MSCI-enriched with research-based
insights. Transactions are sourced through limited partner
clients, with supplemental data being continuously gathered from
original source documents provided by managers,” Smith said.
“This is uniformly classified and checked, and augmented with
extensive research. Only funds with complete inception to date
history and daily cash flow precision history are included. The
dataset effectively represents the opportunity set of private
capital investments in an unbiased way because it is sourced
solely from limited partners around the world who rely on MSCI’s
data and analytics services to manage their private capital
portfolios. No data is sourced via voluntary manager data
submissions, web scraping, or Freedom of Information Act (FOIA)
requests,” Smith said.
Who are these indices aimed at?
“Institutional investors can leverage these indexes for policy
benchmarking, strategic asset allocation, and to help achieve
long-term financial goals. The indexes enable MSCI’s broad range
of clients to understand the recent quarterly returns and
historical, net-of-fees investment performance in the indexes’
extensive universe of closed-end private capital funds, covering
private equity, private credit, private real assets, and funds of
funds,” Smith added.