Decrement Indexes Intro
MSCI has created a series of decrement indexes that may be relevant for structured product use. These indexes are designed to represent the performance of a strategy tracking a given MSCI index from which a pre-determined amount (‘synthetic dividend’) is withdrawn at pre-defined intervals.
MSCI can calculate the MSCI Decrement Indexes based upon any given MSCI Parent Index. Below is a selection of such “live” indexes, available for licensing. Furthermore, this expands the MSCI range of indexes that can be used for derivatives and efficient structured product use.