NEW YORK (HedgeWorld.com)–Almost a year after launching its original hedge fund indexes, Morgan Stanley Capital International has announced the formation of an investable hedge fund index that will be part of an agreement with Lyxor Asset Management, Paris.
The MSCI Hedge Invest Index will be launched later this summer and will be constructed and maintained by MSCI using eligible funds from the Lyxor hedge fund platform. The investable index will remain separate from the MSCI Hedge Fund indexes and fund database that was launched in July 2002 to assist investors in conducting peer group analysis and research Previous HedgeWorld Story.
The new index initially will consist of 60 funds, but overtime that number is expected to grow as the assets on the platform increase and more funds become eligible for the index, according to Simon Midgen, vice president and head of licensing for MSCI. Lyxor will be responsible for selecting and conducting due diligence on those underlying funds
MSCI has published its general methodology for investable hedge fund indexes on its web site. “It provides a unique and transparent framework to construct an index,” said Mr. Midgen, of the methodology.
The index offers weekly liquidity of the underlying funds, which are a diversified grouping of the investments strategies in the hedge fund universe represented by the broader MSCI Hedge Fund Composite Index, according to officials. MSCI hopes to gain interest in the investable index from hedge fund investors, asset managers, banks, insurance companies, private banks and broker-dealers.