Morgan Stanley has launched the ModelWare Core Indices, the first set of equity indices based on the ModelWare analytical framework.
Morgan Stanley has launched the ModelWare Core Indices, the first set of equity indices based on the ModelWare analytical framework. The launch follows months of collaboration between the ModelWare Group and the structured products groups in Europe and the US.
ModelWare is a proprietary framework from Morgan Stanley that adjusts for accounting distortions and differences in reporting based on regional and local accounting regulations. It is used across the firm in many areas, particularly in research, investment banking and private equity.
ModelWare provides a clear view of a company’s return on equity by separating operating from financing performance and identifying the underlying economics of value generation.
The ModelWare Core Indices combine equity market exposure with proprietary insights. Stock selection for the indices is built upon fundamental factors that aim to identify sustainable superior performance over the long term.
According to Morgan Stanley, applying ModelWare in this way creates a unique opportunity for investors to create funds on these indices or access the indices via a range of products from certificates to principal protected structured solutions.
