MSCI Barra (NYSE:MXB), a leading provider of investment decision support tools worldwide, including indices and portfolio risk and performance analytics, announced today that it has launched the MSCI Global Currency Indices. The indices may be licensed for use for portfolio management and benchmarking purposes, as well as to serve as the basis of structured products and other index-linked investment vehicles such as ETFs.
The MSCI Global Currency Indices reflect the performance of both the currency and interest rate returns of the developed and emerging market currencies in regional or composite MSCI equity indices. The weights of each currency are set equal to the relevant country weight in the corresponding MSCI equity index, an innovative approach that is unique to MSCI Barra. This index construction methodology enables institutional investors to measure the total investment performance of foreign currencies within an equity portfolio tracking an MSCI equity index. For example, an investor managing an emerging markets portfolio could use the MSCI Emerging Markets Currency Index to understand the impact of currency and interest rate returns on the performance of the MSCI Emerging Markets Index, or to hedge currency exposure via financial products linked to the index.
âMSCI Barra is committed to providing innovative indices that reflect the performance of the opportunity set for particular investment themes or strategies,â said David Brierwood, Chief Operating Officer, MSCI Barra. âThe MSCI Global Currency Indices and the MSCI Short & Leveraged Indices are the latest products in the MSCI Thematic & Strategy Indices family to come to market, following on the heels of the recent launch of the MSCI Global Minimum Volatility Indices, the MSCI Commodity Producers Indices and the MSCI Agriculture & Food Chain Indicesâ.
The MSCI Short & Leveraged Indices aim to reflect the actual investment process of managers who employ short and leveraged trading strategies by taking into account the main performance components: capital gains, cash dividends and interest.