MSCI Indexes Measure Effects of Currency Hedging

MSCI Inc. launched the MSCI FX Hedge Indices, designed to help institutional investors decompose and measure the impact of hedging the currency exposure of MSCI equity indexes.

Based on the MSCI Global Investable Market Indices (GIMI), the MSCI FX Hedge Indices are designed to reflect the investment process of hedging the currency exposure of a regional MSCI index using monthly FX forward contracts, according to a press release. The indexes seek to simplify the currency hedging investment process for institutional investors by creating standardized currency indexes that correspond to the underlying MSCI benchmarks.

In addition to serving the portfolio construction process, the indexes can also be licensed as the basis of index-linked investment vehicles such as over-the-counter (OTC) options or swaps, structured products, and exchange-traded funds (ETFs), the press release said.

The MSCI FX Hedge Indices can be calculated for any regional or composite index within the MSCI Global Investable Markets Index family. The following flagship indexes are available in USD and EUR at launch:

  • MSCI All Country World (ACWI) FX Hedge Index
  • MSCI World FX Hedge Index
  • MSCI EAFE FX Hedge Index
  • MSCI Emerging Markets FX Hedge Index
  • MSCI Europe FX Hedge Index
  • MSCI Pacific FX Hedge Index.

More information is available at