MSCI launches megatrend indices
MSCI has launched five thematic indices tracking the performance of long-term megatrends that are set to impact society and the economy in the future.
The indices are aimed at investors focused on the themes of smart cities, the digital economy, future mobility, disruptive technology and millennials.
The methodology for constructing the indices systematically identifies companies based on how their business lines are linked with the theme being modelled; an economic relevance score is then used to assess the strength of that link to select the final index constituents.
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MSCI already has an existing thematic index suite of four indices focused on cyber-security, robotics, ageing societies and efficient energy.
Stephane Mattatia, head of index products EMEA and global thematic index products at MSCI, commented: "It is widely acknowledged that there are a number of megatrends that will significantly impact the global economy and societies around the world, and we are seeing increasing demand from investors seeking to align their investments to these long-term themes. This new suite of indexes provides them with tools they need to assess and measure these structural trends."
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The indices
- The MSCI ACWI IMI Smart Cities Index - Companies that are positively exposed to the shift towards smart cities, including smart connectivity, smart infra, smart buildings and homes, smart safety and security, smart mobility, smart waste and water management.
- The MSCI ACWI IMI Digital Economy Index - Companies that derive significant revenues from the digital economy value chain, including digital payments, robotics, cybersecurity, E-commerce, the sharing economy, social media and cloud computing.
- The MSCI ACWI IMI Future Mobility Index - Companies that are positively exposed to increased investment in electro-chemical energy storage technologies, mining companies that produce metals used to manufacture batteries, autonomous vehicles and related technologies, electric vehicles, new transportation methods and shared mobility.
- The MSCI ACWI IMI Disruptive Technologies Index - Companies commonly associated with or described as "disruptive technology". These are broadly classified under the sub-theme 3D printing, the Internet of Things, cloud computing, fintech, digital payments, healthcare innovations, robotics, cybersecurity, clean energy and smart grids.
- The MSCI ACWI IMI Millennials Index - Companies that are positively exposed to the spending power and preferences of the "millennial" generation. These companies encompass a broad range of categories including popular brands, health and fitness, travel and leisure, social media and entertainment, housing and home goods, financial services, food and dining and clothing and apparel.
