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MSCI Enhances Transparency in Private Markets with Daily Index

In a strategic move to support decision-making in private markets, MSCI Inc. has recently launched the MSCI Nowcasting (Daily NAV) Index. This daily benchmark aims to evolve MSCI’s private capital indicators into high-frequency, research-backed signals specifically designed for private credit and private equity markets. By addressing the traditional quarterly reporting cycle that often leaves investors with gaps in critical information, this new index seeks to provide timely insights reflecting market movements, thereby empowering investors with benchmark-level signals for better portfolio decision-making.

Historically, private market disclosures have followed a quarterly rhythm, leading to challenges for investors dealing with information voids between reports. Recognizing this need for immediacy, the MSCI Nowcasting (Daily NAV) Index provides daily estimated NAV values linked to existing benchmarks, filling the gaps in information availability that investors face.

To further benefit investors, MSCI has developed the MSCI All Country Private Credit Index and the MSCI All Country Private Equity Index. The former is specifically constructed to assist chief investment officers, risk management teams, and consultants in identifying turning points within the credit cycle, enabling daily monitoring of private credit exposures and governance reporting for committees. Complementing this, the latter offers daily signals regarding private equity exposures.

The utilization of these two indices allows investors to incorporate private assets into multi-asset risk models on a daily basis. This enhances timely monitoring during reporting gaps and supports contribution analysis. Consequently, investors are better equipped to make informed asset allocation and portfolio construction decisions.

The calculation of the MSCI Nowcasting (Daily NAV) Index integrates three distinct information sources: the architecture of MSCI’s private market benchmarks and cash flow history of funds, public market proxies reweighted based on exposure by country and sector, and newly reported fund NAVs from general partners. This method is backed by robust statistical modeling, reduced selection bias through data obtained from limited partners (LPs), and solid index governance ensuring transparency and long-term scalability.

Luke Flemer, MSCI’s Head of Private Assets, highlighted the importance of this advancement stating, “Investors have faced the challenge of balancing the reliability of benchmark-level private market indicators with the need for immediacy in modern portfolio management and decision-making. The newly launched MSCI Nowcasting (Daily NAV) Index serves as a solution to bridge this trade-off, delivering daily signals that facilitate more timely and confident asset allocation and risk assessment across the private market spectrum.”

The launch of this index not only promotes enhanced transparency in private markets but also reflects MSCI's commitment to equipping investors with the necessary tools, research, and data for informed decision-making across their portfolios. For detailed insights, interested parties can visit MSCI’s official website.

About MSCI

MSCI Inc., listed on the NYSE under the ticker MSCI, plays a pivotal role in enhancing the global market framework by connecting participants in the financial ecosystem through a common language. With their extensive research and cutting-edge technology, MSCI provides essential data, risk analytical tools, and indexes that establish standards for global investors, helping them to comprehend risks and investment opportunities, thereby making better decisions and driving innovation.

MSCI serves a diverse clientele including asset managers, asset owners, private market sponsors and investors, hedge funds, wealth managers, banks, insurance firms, and corporate entities. Comprehensive information can be found at www.msci.com.

MSCI Japan

In Japan, MSCI operates as a key player within the investment ecosystem, combining global insights with local expertise to assist both institutional and retail investors in navigating an increasingly complex investment landscape. With over 20 years of experience in Tokyo, MSCI has developed long-term partnerships with Japanese pension funds, insurance companies, asset management firms, hedge funds, wealthy individuals, banks, and corporate entities.

Utilizing advanced analytical and risk management tools, along with a dedicated research team, MSCI aims to empower investors in making informed decisions and building robust portfolios. MSCI indexes serve as the foundation for asset allocation among major institutional investors in Japan and contribute to individual investors’ global diversification and long-term growth efforts through the NISA framework. Through its extensive global presence, MSCI takes on a comprehensive role, connecting Japanese companies with sustainability-focused global capital markets.

Furthermore, MSCI supports the integration of sustainability into clients' decision-making processes and acts as a bridge to global capital markets for Japanese enterprises via innovative benchmarks like the Japan Equity Female Participation Index and Japan Equity ESG Select Leaders Index. For more details, please visit www.msci.com/japan.