MSCI, provider of equity, fixed income and hedge fund indices and Lyxor Asset Management have teamed up to bring the MSCI Hedge Fund Index to the marketplace this summer.
The index will consist of a sample of hedge fund strategies and contain funds with weekly liquidity. The index will be constructed by MSCI, using eligible funds from the Lyxor platform. Lyxor will be responsible selecting and conducting due diligence on the funds, monitoring the investment mandate of each manager and providing valuations on individual funds. The Index will be a new index, separate from the existing MSCI Hedge Fund Indicies and Fund database.
There is increasing global demand from investors seeking a "liquid and representative hedge fund index," hence the launch of the MSCI product, the companies say. The index is aimed towards investors, institutional asset managers, fund-of-fund companies and broker/dealers.
"A hedge fund index that can serve as the basis of financial products has been one of the needs of hedge fund market participants for some time," said Henry Fernandez, President and CEO of MSCI. "We believe that the diversity of the Lyxor Platform provides a strong basis for us to build a relevant investable hedge fund index that market participants can use to develop index linked products."