MSCI Investable Hedge Fund Indices
Investable and representative hedge fund indices
MSCI Investable Hedge Fund Indices
- Designed to reflect the overall structure and composition of a defined hedge fund opportunity set
- Contain funds open to subscription. Designed to be licensed for use as a basis for tracker funds and other financial products that aim to replicate index returns
- Include funds from a wide range of hedge fund investment strategies available on third party hedge fund platforms
Key Features
How Do the MSCI Investable Hedge Fund Indices Work?
MSCI Investable Hedge Fund Indices comprise managed accounts advised by hedge fund managers
available on a third party hedge fund platforms. These third party hedge
fund platforms have entered into licensing agreements with MSCI Barra.
Third Party Hedge Fund Platforms
- Conduct initial and ongoing due diligence on hedge fund managers
- Own and establish managed accounts on their platforms with negotiated liquidity and capacity
- Monitor the investment mandate of each hedge fund manager and the provision of fund valuations independent of each fund's external advisor
- Review managed accounts for available capacity
- Calculate the Net Asset Value (NAV)
MSCI Barra
- Establishes index objective and designs the index methodology
- Classifies the funds according to the MSCI's Hedge Fund Classification Standard
- Distributes index and constituent information, including fund weighting to qualified subscribers*
- Provides guidelines for addition of new strategies to the platform to satisfy methodology requirements and objectives
Licensing
Financial institutions may license the MSCI Investable Hedge Fund Indices, including banks, broker
dealers, insurance companies and asset managers for the creation of index based financial products
such as index funds, insurance products, warrants, structured products and OTC derivatives. A license
is required from MSCI Barra to use any MSCI Investable Hedge Fund Index or launch any product linked
to, or based on, any MSCI Investable Hedge Fund Index. For further information on licensing the MSCI
Investable Hedge Fund Indices, please contact MSCI Barra Global Client Service.
*Among other requirements, subscribers must be "accredited investors" as defined in the United States Securities Act of 1933.
