MSCI has launched five megatrend indices tracking the rise of smart cities, the digital economy, future mobility, disruptive technology and millennials.
The methodology identifies companies based on the links between their business lines and business description information and the theme being modelled. MSCI calculates an economic relevance score to assess the strength of that link to select the final index constituents.
MSCI has four existing megatrends indices focused on cyber-security, robotics, ageing societies and efficient energy.
Stephane Mattatia, head of index products EMEA and global thematic index products at MSCI, said: “It is widely acknowledged that there are a number of megatrends which will significantly impact the global economy and societies around the world, and we’re seeing increasing demand from investors seeking to align their investments to these long-term themes.
“This new suite of indexes provides them with tools they need to assess and measure these structural trends.”
About the indices
The MSCI ACWI IMI Smart Cities Index
Companies that are positively exposed to the shift towards smart cities, including smart connectivity, smart infra, smart buildings and homes, smart safety and security, smart mobility, smart waste and water management
The MSCI ACWI IMI Digital Economy Index
Companies that derive significant revenues from the digital economy value chain, including digital payments, robotics, cybersecurity, E-commerce, the sharing economy, social media and cloud computing
The MSCI ACWI IMI Future Mobility Index
Companies that are positively exposed to increased investment in electro-chemical energy storage technologies, mining companies that produce metals used to manufacture batteries, autonomous vehicles and related technologies, electric vehicles, new transportation methods and shared mobility
The MSCI ACWI IMI Disruptive Technologies Index
Companies commonly associated with or described as “disruptive technology”. These are broadly classified under the sub-theme 3D printing, the Internet of Things, cloud computing, fintech, digital payments, healthcare innovations, robotics, cybersecurity, clean energy and smart grids
The MSCI ACWI IMI Millennials Index
Companies that are positively exposed to the spending power and preferences of the “millennial” generation. These companies encompass a broad range of categories including popular brands, health and fitness, travel and leisure, social media and entertainment, housing and home goods, financial services, food and dining and clothing and apparel