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Initially designed for high net worth individuals, particularly in the United States, hedge funds were gradually extended to institutional investors and retail investors. The recent appearance of alternative investment indices reflects the democratisation and recognition of this industry as a fully-fledged asset class, proving the capacity of this industry to overcome its traditional shortcomings (lack of regulation and transparency, low liquidity).
An alternative investment index needs to reflect a fair and accurate image of both the yield/risk ratio and the universe’s particular features. Furthermore, in order to offer attainable returns, the index needs to be investable. Taking this into account, MSCI has developed its proprietary investable hedge fund index methodology and related classification standard, available on www.msci.com.
In accordance with its rule-based methodology, MSCI has developed a complete range of MSCI Hedge Invest IndicesSM, based on the Lyxor Managed Account Platform, which offer permanent investment capacity and weekly liquidity.
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