MSCI adds index to track industrial infrastructure in developed markets

By Susanna Moon

Chicago, Jan. 21 – MSCI Inc. said it launched the MSCI World Core Infrastructure Index, which tracks the performance of companies in developed markets that work in core industrial infrastructure.

The index is constructed by identifying securities that belong to a specific set of eligible sub-industries from the Global Industry Classification Standard (GICS), according to a company press release.

The weight of each sub-industry is capped at 15% to provide more diversification and the weight of any security is capped at 5% to reduce concentration.

The sub-industries included are utilities and infrastructure.

“The launch of the MSCI World Core Infrastructure Index is in response to growing interest in this asset class and an evolving shift in the way investors view real assets,” Diana Tidd, managing director and head of the MSCI index business in the Americas, said in the press release.

“Real assets, such as real estate and infrastructure, are increasingly being viewed by investors as a foundational building block of a modern investment portfolio, rather than an alternative. Core infrastructure assets, in particular, have unique investment characteristics and this index gives investors a purer representation of the performance of infrastructure.”

MSCI said it developed the World Core Infrastructure Index after a recent client consultation.

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