International company is an international company that provides global indexes and related derivatives. Its MSCI index is widely referenced by investors and used by investment professionals all over the world, including portfolio managers, brokers, exchanges, investment consultants, scholars and financial media.
MSCI index. MSCI index is the most widely used investment target among global portfolio managers.
What is the function of msci index?
The function of Msci index is objectivity: when compiling an index, MSCI should first study the politics and economy of various countries through professionals, and then compile it according to scientific methods to unify the calculation formulas of each index, so as to compare the long-term performance between indexes.
The second function of msci index is fairness: MSCI maintains a high degree of confidentiality in the process of compiling the index; In the future tracking, maintain a high degree of rigor; When changing the calculation formula, maintain a high degree of neutrality to avoid a large amount of funds flowing into the local market and increase instability.
The third function of msci index is practicality: MSCI not only calculates the index denominated in local currency, but also compiles the stock price index denominated in US dollars, which is convenient for international investors to compare.
Msci Index Function 4 Reference: For international fund managers and investment institutions, only by establishing a portfolio with good performance can they outperform the broader market. However, the compilation methods of stock index in different countries are different, and the exchange rate changes in different countries will also affect the return on investment, thus causing problems in investment reference and performance appraisal. MSCI has considered the above factors when compiling the index.
Msci Index Function 5 Liquidity: With the changes of the company's finance and stock price, or the changes of political, economic and legal restrictions, the stock price index will lose its reference value after a period of time. MSCI adjusts its constituent stocks every quarter to avoid this problem.
The msci index has six functions: the index compiled by MSCI is disseminated through various media, and information such as daily index changes or index content changes is rapidly disseminated around the world through websites such as Reuters and Bloomberg and international media.
Collect and analyze the data of listed and unlisted shares, owners, free circulation and liquidity of local listed companies in the market. All these companies can join the MSCI index.
Risk disclosure: This information does not constitute any investment advice. Investors should not substitute such information for their independent judgment, or make decisions only based on such information. It does not constitute any trading operation and does not guarantee any income. If you operate by yourself, please pay attention to position control and risk control.