Morningstar to Calculate and Distribute Hedge Fund Indices Using MSCI Barra Methodology |
Date: Friday, September 19, 2008
Author: Morningstar
MSCI Barra (NYSE: MXB), a leading provider of investment decision support tools
worldwide, including indices and portfolio risk and performance analytics, and
Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment
research, have entered into an arrangement under which Morningstar will
calculate and distribute hedge fund indices by applying the MSCI Hedge Fund
Index Methodology and Hedge Fund Classification Standard to Morningstar’s hedge
fund database.
“We are delighted to be working with Morningstar, and believe that this exciting
development will greatly benefit all users of our hedge fund indices. Going
forward they will have access to enhanced hedge fund indices from Morningstar
based upon MSCI Barra’s methodology applied to one of the largest hedge fund
databases,” said David Brierwood, Chief Operating Officer, MSCI Barra.
“For more than 35 years, MSCI Barra has produced some of the most widely used
and well-respected indices in the industry, and we’re pleased to apply the MSCI
Hedge Fund Index Methodology to our extensive hedge fund database,” said Liz
Kirscher, President of Data Services for Morningstar. “The combination of MSCI
Barra’s methodology and Morningstar’s large hedge fund universe will allow us to
offer a valuable set of robust benchmarks to both MSCI Barra clients and ours.”
These indices and the Morningstar database will replace the current MSCI Hedge
Fund Indices and Database after a brief transition period. MSCI Barra will
continue to calculate and distribute the MSCI Investable Hedge Fund Indices and
the Barra Hedge Fund Risk Model. Morningstar will continue to calculate and
distribute its existing Morningstar Hedge Fund Indices, including the
Morningstar® 1000 Hedge Fund Index.
The MSCI Hedge Fund Index Methodology uses primary and secondary hedge fund
characteristics to build the indices based on investment process, asset class,
geography, and Global Industry Classification Standard (GICS®) sectors. This
granularity is unique among hedge fund indices and allows investors to benchmark
precise investment opportunities. Morningstar collects 300 data points from
8,500 hedge funds and funds of hedge funds for its database including
information about portfolio holdings, strategy allocation and hedging
techniques.
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About MSCI Barra
MSCI Barra is a leading provider of investment decision support tools to
investment institutions worldwide. MSCI Barra products include indices and
portfolio risk and performance analytics for use in managing equity, fixed
income and multi-asset class portfolios.
The company’s flagship products are the MSCI International Equity Indices, which
are estimated to have over USD 3 trillion benchmarked to them, and the Barra
risk models and portfolio analytics, which cover 56 equity and 46 fixed income
markets. MSCI Barra is headquartered in New York, with research and commercial
offices around the world. Morgan Stanley, a global financial services firm, is
the controlling shareholder of MSCI Barra.
MSCI Barra was recently named Index Provider of the Year at the 2008 European
Pensions Awards.
For further information on MSCI Barra, please visit our web site at
www.mscibarra.com
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in
North America, Europe, Australia, and Asia. The company offers an extensive line
of Internet, software, and print-based products and services for individuals,
financial advisors, and institutions. Morningstar provides data on more than
280,000 investment offerings, including stocks, mutual funds, and similar
vehicles. The company has operations in 18 countries and minority ownership
positions in companies based in three other countries.
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