Key Highlights:
• MSCI proposes to purchase the wealth technology platform to allow wealth management experts to make good portfolios.
• The company intends to meet the increased demand for a portfolio-building strategy.
• The deal is anticipated to close by 2024, the first quarter.
• A Renowned investment research firm (MSCI) indicates the purchase of wealth technology platform Fabric for making good portfolios of advisors and financial experts.
NEW YORK- (Business Wire)- MSCI INC.
MSCI is a renowned firm offering an expansive range of mission-critical decision support tools as well as services related to the global investment community. It has recently got into a purchase agreement with the introduction of Fabric, a wealth technology firm dealing with customization, portfolio design, and analytics with financial advisors and finance managers.
Fabric was introduced in 2019 to offer opportunities to aspiring wealth managers by providing advanced risk and portfolio design technology. It is quite famous for offering the rule-based portfolio construction tool, and other options supporting MSCI are the Multi-Asset Class (MAC) factor model as well as the MSCI Private Asset Model.
Fabric is an innovative platform supporting advisors and leading wealth managers in designing modern portfolios and risk assessments for managing customized portfolios. It can allow individual investors to acquire their financial objectives.
Top wealth managers and financial experts can harness their institutional quality capabilities for curating tailored client portfolios. It can help in staying in sync with the emerging trends, risks, and prospects for climate, sustainability, and others.
MSCI’s overall portfolio toolkit, along with the rule-based portfolio construction capabilities, can help advisors and financial managers arrange investment activities. It can also offer a collaborative experience and impart real-time delivery of prospects to help clients get transparency of overall markets.
MSCI, along with Fabric, can channel the potential of wealth managers and utilize their investment guidance to cope with clients’ individual preferences and offer customization on scale.
Head of Analytics Jorge Mina, MSCI, mentioned: “Today, MSCI offers wealth management tools for home office model portfolio construction, product due diligence, portfolio analysis, advisor goal-based planning, sales enablement proposals, and more. This combination with Fabric will not only enhance the use of our existing content and tools but also accelerate the development of new strategic functionalities related to rules-based portfolio construction. This transaction underscores MSCI’s commitment to expanding its market reach and offering a broader spectrum of solutions to fulfil the diverse needs of both institutional and individual investors.”
Govinda Quish, Co-Founder and CEO of Fabric, stated: “Fabric’s mission has always been focused on serving the global wealth management community by modernizing their portfolio design and risk management approach. By bringing together our extensive data, systems, and teams, the combination of Fabric and MSCI aims to redefine how wealth managers design, manage, and optimize their clients’ portfolios.”
Further, Rick Bookstaber, the Head of Rish and Co-Founder of Fabric stated: “MSCI is a world leader in investment risk management solutions. Fabric has long leveraged MSCI’s leading factor models to power the platform’s risk/return decomposition, portfolio analysis, rebalancing optimization, scenario analysis, and MSCI’s ESG and climate risk data. Together, we look forward to providing wealth managers and advisors with enhanced risk analysis capabilities to help their clients achieve their investment objectives.”
Although the critical terms and conditions of the transaction were not very clear, it is obvious that this transaction is not going to financially hamper MSCI in any way. This transaction might soon close in the next quarter, though it’s subject to the customary closing conditions.
About MSCI
MSCI, New York, is a well-known investment research firm offering services and support tools for the entire global investment community. It holds over 50 years of in-depth expertise in data, research, and technological innovation. With significant investment decisions, it can enable clients to analyze critical aspects of risk and return for confidently creating essential portfolios.
We constantly provide industry-led research-enhanced solutions for clients to gain essential insights and ensure complete transparency in the investment process.
MSCI also mentioned that Fabric will guide all wealth management experts and financial advisors in making crucial decisions. Expectations are out of this transaction closing around the first quarter of 2024.
Experts also reveal that MSCI shares gained a spike of over 17% this year!
