MSCI Indexes with IDCo Fair Value Pricing make it easier and simpler for active mutual fund managers, pension plans and consultants to explain 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 Interactive Data’s Fair Value Information Service.

Benefits to mutual fund managers, pension plans and consultants:

• 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 IDCo Fair Value Pricing are only available outside the European Union and United Kingdom, and cannot be used to create ETFs or Financial products.

What is fair value pricing?

While comparing a fund’s adjusted NAV to a fair valued index may reduce perceived tracking error, it may not eliminate it when the fund uses a different fair valuation source or methodology than the index.