MSCI launched a new index last month in in response to demand from investors for a representative hedge fund index.

The MSCI Hedge Invest Index calculated in U.S. dollars, contains 64 hedge funds drawn from 11 hedge fund investment processes and has a base level of 10,000 as of July 15, 2003. The number of funds in the index is expected to increase over time.

According to MSCI, the index consists of a diverse sample of hedge funds that represent a broad range of hedge fund strategies and have weekly liquidity.

The index is constructed and maintained by MSCI according using eligible funds based on managed accounts owned by Lyxor Asset Management, a subsidiary of the Société Générale Group, and advised by external hedge fund managers.

MSCI said the index was been launched in response to demand from investors for a
representative hedge fund index with constituents that have frequent liquidity and that can be used as the basis for a wide range of index linked financial products, such as funds, derivatives and structured products.

MSCI is making the index available for licensing to asset managers, fund-of-funds companies and broker dealers for the creation of such products.

One of the core hedge funds advised by Toronto-based investment manager J.C. Clark Ltd. has been included in the index. J.C. Clark is currently the only Canadian investment advisor to be included.

“We are very pleased to be part of in this landmark initiative” said John Clark, CEO of J.C. Clark Ltd. “In addition, we are also pleased to see a growing international interest in Canadian hedge funds”.