Custom indexes - intro

What are Custom Indexes?

Investors are increasingly using indexes in new ways: creating novel avenues for growth, asset allocation, risk management, performance reporting, portfolio modelling and in capturing the massive shifts driving long-term megatrends.

MSCI calculate over 7,000 custom indexes for clients globally, drawing from our database of more than 22,000 securities in 75 countries.

These customized indexes help clients avoid benchmark misfit, allow investors to align with sustainability goals, carry out bespoke reporting, performance and risk analysis and manage currency risk through custom hedged indexes.

 

Index Builder

Increase your speed to market, deliver differentiated investment solutions and enjoy a more convenient, intuitive user experience


custom indexes - video

Custom Index App

See how to design, simulate strategies, analyze and license MSCI custom indexes, in three simple steps.

Leverage our methodology

Leveraging our market-leading methodologies - across ESG + Climate, Thematic, Factor and Market Cap equity indexes - research IP and technology; the Index Builder gives clients direct access to our data, providing a space to design indexes, simulate strategies, analyze and license MSCI custom indexes, in three simple steps.


Nested Applications

Design

 

1. Design

Design your own investment thesis by applying our robust ESG, Climate, Thematic and factor methodologies and differentiated data to calculate the indexes' performance.


Simulate and Analyze

 

2. Simulate and Analyze

Evaluate and refine your idea by simulating historical index performance, and comparing index characteristics across multiple views including returns, exposures and investability measures


License

 

3. License

License your preferred custom indexes and easily subscribe to best-fit benchmarks.


from ideation to production

From ideation to production, Index Builder supports asset owners, investment and wealth managers and product sponsors to experiment and quickly bring new, differentiated products to market, simulate indexes around investment hypotheses, test index-based strategies and create and license best-fit benchmarks.

All within a day.

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Why Custom Indexes?

 

Why Custom Indexes?

 

Broad Coverage:

Customize any MSCI index to reflect specific benchmark or product requirements.

 

Rigorous Calculation:

Investable, transparent and replicable indexes designed with the same rigorous calculation and maintenance methodology as applied to the MSCI Indexes.

 

Data Reliability

Well-established, reliable index production process – same as used for calculating all MSCI Indexes.

 

Global Support

Cross-functional custom indexes team of experts in Research, Index Production, IT and Product Management.


custom indexes content

Applications

We offer a wide variety of flexible options for defining, calculating and disseminating custom indexes. Any MSCI Index may be used as a starting point. You can specify the customization criteria and we can implement, calculate and maintain the index based on your specifications.

You can use the MSCI Custom Indexes to:

  • Avoid benchmark misfit by using an index that more accurately reflects the investment strategy or constraints
  • Benchmark socially responsible investment strategies (environmental, political, social)
  • Carry out bespoke reporting, performance and risk analysis
  • Manage currency risk via custom hedged indexes
  • Outsource the calculation of specialized in-house indexes
  • Comply with regulatory guidelines through the application of certain capping criteria
  • Construct and issue index-linked products to meet specific investment themes applying investability and liquidity criteria

 

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Performance

Methodologies


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Regulation