Alternative data firm QuantCube Technology’s real-time macro-economic data will be used in the newly launched MSCI Economic Regime Allocator Index by MSCI Inc. The index moves assets into different categories based on the current economic regime, using a pre-defined set of rules. The goal is to enhance investment performance by rotating and reallocating assets as the economy transitions from one phase to another.
The index identifies four different economic situations based on the rate of change of GDP and CPI indicators and whether these are rising or falling. A sectoral approach is used to optimise performance by adjusting equity holdings according to the current economic regime.
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