Based on the MSCI Global Investable Market Indices (GIMI), the MSCI FX Hedge Indices are designed to reflect the investment process of hedging the currency exposure of a regional MSCI index using monthly FX forward contracts, according to a press release. The MSCI FX Hedge Indices seek to simplify the currency hedging investment process for institutional investors by creating standardized currency indexes that correspond to the underlying MSCI benchmarks.
In addition to serving the portfolio construction process, the MSCI FX Hedge Indices may also be licensed as the basis of index-linked investment vehicles such as OTC options or swaps, structured products and ETFs, the announcement said.
The MSCI FX Hedge Indices can be calculated for any regional or composite index within the MSCI Global Investable Markets Index family. The following flagship indices are available in USD and EUR at launch:
- MSCI All Country World (ACWI) FX Hedge Index,
- MSCI World FX Hedge Index,
- MSCI EAFE FX Hedge Index,
- MSCI Emerging Markets FX Hedge Index,
- MSCI Europe FX Hedge Index, and
- MSCI Pacific FX Hedge Index.
The indexes are available on request from MSCI. Further information is at www.mscibarra.com .
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