MSCI Launches Breakthrough Index Integrating Public Markets, Private Equity
MSCI Inc. (NYSE: MSCI) launched the MSCI All Country Public + Private Equity Index, an innovative daily index that combines public markets and a broad private equity view within a single, coherent framework.
In an official statement, MSCI said the launch marks a major shift in how investors can assess total equity exposures and measure performance across their portfolio.
With private markets increasingly integrated into investment portfolios, private equity is becoming a core component of total portfolio allocation, contributing to diversification, long-term return potential and exposure to segments of the economy not captured by public markets.
Reflecting the evolving structure of investor portfolios, this innovative index sets a new standard for tracking global equity performance across public and private markets.
The index combines the flagship MSCI ACWI IMI, which represents the performance of the full opportunity set of publicly listed equities across developed and emerging markets.
This serves as the benchmark for approximately USD 5.6 trillion in assets under management, and the new MSCI All Country Private Equity Index, a daily measure based on MSCI’s proprietary dataset of LP-sourced cash flows and valuations from nearly 10,000 private equity funds.
MSCI said this integrated approach allows the index to reflect both the investable public equity universe and modelled private equity exposures in a consistent global equity framework.
Powered by MSCI’s combined index expertise and research and data capabilities, the MSCI All Country Public + Private Equity Index methodology is designed to provide transparency and a consistent approach for index construction, maintenance and rebalancing aligned with MSCI’s index design principles.
The index, with a target allocation to private equity set to 15%, is calculated daily based on the drifted weight and the daily performance of each component index.
The index is reviewed and rebalanced quarterly to maintain consistency with the target allocation weights. In each review, the latest available component index data are incorporated, and the weighting factors are reset to the target allocation.
Rebalancing is conducted in accordance with MSCI’s index maintenance policies providing continuity and comparability over time.
“This index is a milestone in our mission to make private markets more transparent and accessible,” said Luke Flemmer, Head of Private Assets at MSCI.
“It reflects MSCI’s unique combination of high-quality data, world class research and index distribution capabilities and extends our private assets toolkit that gives investors a simpler way to access, benchmark, and allocate to private capital.”
The launch reflects MSCI’s broader commitment to equipping investors with tools, research and data required to support informed decision-making across their portfolios. British Pound Strengthens on Revised UK PMI, Softer USD
