MSCI has launched a service to help investors profile the risk of complex private infrastructure holdings and inform investment decisions.
MSCI said its newly launched Private Infrastructure Modelling Service, which uses data provided by The Burgiss Group and MSCI Real Estate, was created in response to growing investor demand for private assets.
The service covers regions for sectors including utilities, industrials and energy, integrating infrastructure-specific factors with MSCI’s multi-asset class factor model.
MSCI said it provided a “precise set of exposures, driving transparency and helping to analyse the idiosyncratic nature and complexity of the private infrastructure asset class”.
Jorge Mina, head of analytics at MSCI, said: “The private asset class has emerged as a critical component in the construction of long-term portfolios.
“Today, investors are looking at private assets differently, expanding and shifting the role the investments play within a multi-asset class portfolio. While capital inflows to private assets have increased incrementally, investor appetite and confidence has been restricted by a lack of transparency and data.
“At MSCI, we’re committed to powering better investment decisions and we view this modelling service as a crucial milestone driving the next wave of investor demand for private assets.”
The service has been launched in partnership with Burgiss – a company that last year appointed as president the former MSCI head of real estate product Jay McNamara.
“Today’s announcement signals the strength of MSCI’s and Burgiss’ partnership and displays how our cross-sector expertise can be utilised to provide industry-leading solutions,” McNamara said.
”Burgiss’ data and solutions allow investors to drilldown at a granular level into the performance and exposures of private capital portfolios across asset classes, including infrastructure.
”This launch forms the first part of wider plans to bring enhanced transparency to private markets and create an investment experience that mirrors public markets. We are committed to meeting client demands and look forward to expanding our product portfolio to encompass additional asset verticals in future.”