21 May 2020

Following the consultation MSCI launched at the end of 2019, MSCI have announced they will implement the time-weighted return methodology, with adjustment for daily weighted external cash flows, for a number of MSCI Property Fund Indexes.

This enhancement will enable like-for-like comparison across property fund index returns globally and improve the comparability between and aggregation of closed- and open-end fund returns.

MSCI will be rolling out the new formula, in parallel to the existing one, for the Q3 2020 and Q4 2020 results.  In the UK this will be followed by an additional consultation in March 2021 to make a final decision based on the parallel run.

Further information:

Click here to read the detail of the MSCI decision to enhance the MSCI Property Fund Index methodology

Click here for further explanations on the consultation results

Author

Jacqui Bungay

Jacqui Bungay

AREF Secretariat, AREF

Jacqui provides policy guidance and secretariat services to the AREF Board and AREF Management Committee as well as the following AREF Committees: Corporate Governance, ESG & Impact Investing, Investor, Public Affairs, Research and Information and Retails Funds. In addition, Jacqui monitors members’ compliance with AREF’s Code of Practice. 

Jacqui joined AREF in 2014 after working for over 25 years in fund compliance, client relationships and administration at Natwest Trustee & Depositary Services.