MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, including indices, portfolio risk and performance analytics and corporate governance services, announced yesterday that it will consult with the investment community on a proposal to construct "Risk Weighted" and "Value Weighted" indices aimed at reducing the risk of an equity index and achieving a value tilt respectively, by reweighting all market cap weighted constituents of a parent MSCI index using historic volatility and company fundamentals. In particular, MSCI will seek feedback on the objectives as well as the design of the proposed "Risk Weighted" and "Value Weighted" indices.
MSCI welcomes feedback from the investment community and will solicit comments from certain market participants. Other interested market participants may also request a consultation document describing the proposal.
Please note that this consultation may or may not lead to the creation of "Risk Weighted" or "Value Weighted" indices as proposed in the consultation document. MSCI’s final decision will be announced in advance of the launch of such indices if it occurs.