Author: Gordon Platt

MSCI Barra, a Morgan Stanley majority-owned company that develops and maintains benchmark indexes for an estimated $3 trillion of investment assets worldwide, has created a new equity index combining Brazil, Russia, India and China.

Known as the MSCI BRIC Index, it includes 202 securities with a total market capitalization of about $420 billion. The index was developed in response to requests from investment professionals for an emerging-markets benchmark index that reflects the overall market performance of these four countries, says Rabbe Ekholm, managing director at New York-based MSCI Barra. Strong interest has been expressed in the use of the new index for actively managed funds, index funds and exchange-traded funds, as well as for the basis of custom indexes, he says.

The new BRIC index combines, on a market capitalization weighted basis, MSCI’s individual equity indexes for the four big emerging markets. It is designed to provide an objective representation of these four markets. Value and growth indexes for the MSCI BRIC are also available.

MSCI acquired Barra, a firm that helps investors measure and manage portfolio and company-wide investment risk, in 2004.

Gordon Platt