The Wealth Management Association (WMA) will drop FTSE as provider of its Private Investor Index Series in favour of the “flexibility” offered by MSCI.
The updated series will provide a range of five multi-class indices covering conservative, balanced, income, growth, and global growth categories, and will include 10 years of history from the outset.
The WMA said the decision to move from FTSE to MSCI, effective from March 1 2017, was in part so it could ensure the indices remain relevant to the wealth management industry.
A spokesperson for the WMA said: “It is very important to the WMA that the indices... can be augmented and enhanced as and when necessary.
“The WMA board has been impressed with MSCI’s willingness to consider these needs and deliver solutions where necessary. Responding to our member firms’ feedback, enhancements to the indices will include a fixed income index that is truly representative of our members’ investment policy.”
Data collection for the indices from within the WMA membership will remain the responsibility of the trade body. Data will continue to be reported anonymously.
The trade body also noted that it will offer an “alternative” weighted index in the future, and that it will begin discussions with MSCI regarding the possible need for, and creation of, “risk-based indices”.
WMA chief executive Liz Field said: “It is essential that as a trade association we constantly review the ongoing relevance and use of our suite of indices for our member firms. As demands change we need to be able to evolve with them and the flexibility offered by MSCI allow us to do that.”