This custom index screen is designed by Morgan Stanley to capture an attractive combination of style properties relative to the broad European market. Morgan Stanley models the style properties using MSCIâs Value and Growth enhanced style classification system. The Quantitative and Derivative Strategies (QDS) group at Morgan Stanley developed this methodology for customizing the MSCI Europe Index. MSCI applies Morgan Stanleyâs quantitative screen to the MSCI Europe Index to calculate this custom index, which is rebalanced quarterly.
âWe are delighted that Morgan Stanley has chosen us as their preferred supplier for this customized index,â added David Brierwood, Chief Operating Officer of MSCI Barra. âThis index customization further reinforces the breadth and depth of index customizations that we can calculate for our clients - from simple geographic or sector modifications to complex screening using client-defined criteria. We have seen considerable growth in this area as investors look for more targeted or specialized investment opportunities and benchmarks that are more representative of their investment set.â
MSCI Barra currently calculates over 3000 customized indices for more than 300 clients - from asset managers to broker dealers, from pension plans to insurance companies. MSCIâs Custom Indices may also be licensed for use as the basis for investment products that reflect specific mandates or strategies that require a customized benchmark maintained by an independent third-party.
*Calculated by MSCI and modeled by Morgan Stanley Quantitative Strategies