MSCI indexes with ITG fair value model

When an actively managed mutual fund’s Net Asset Value (NAV) is fair value adjusted and its benchmark is calculated on closing prices, this results in an artificial tracking error.

The MSCI Indexes with ITG Fair Value Model help active fund managers, pension plans and consultants explain the artificial tracking error between a fund’s fair value adjusted NAV and an MSCI index calculated using closing prices. They are calculated using fair value adjustment factors as of the close of the New York Stock Exchange provided by ITG’s Portfolio Fair Value Service.

The MSCI Indexes with ITG Fair Value Model can be used for:

• Marketing and Reporting – Explain active mutual fund tracking error to clients
• Internal Reporting – Explain return dispersion for active mutual funds to investment boards
• Fund Evaluation and Research – Support active mutual fund research process

The MSCI Indexes with ITG Fair Value Pricing are only available outside the European Union and cannot be used to create ETFs or Financial products.

How does fair value work?