MSCI Strengthens Their Wealth Management Offering with Fabric Acquisition
In a significant move aimed at reshaping the global wealth management landscape, MSCI Inc. has announced its acquisition of Fabric. This cutting-edge wealth technology platform specialises in portfolio design, customisation, and analytics for wealth managers and advisors. This strategic alliance seeks to streamline portfolio construction and sales enablement, ultimately bringing customisation at scale to the global wealth management industry.
We are proud to announce that we have entered into a definitive agreement to acquire Fabric, a wealth technology platform specializing in portfolio design, customization, and analytics for wealth managers and advisors.
Fabric was established in 2019 to serve an underserved wealth management community by providing state-of-the-art risk and portfolio design technology. At its core, Fabric is known for its rules-based portfolio construction tools and its utilisation of the MSCI Multi-Asset Class (MAC) Factor Model and MSCI Private Asset Model. These tools empower wealth managers and advisors to create modern portfolio designs and perform precise risk assessments, thereby enabling them to tailor portfolios to meet the unique financial objectives of individual investors.
Meeting the Demand for Customisation at Scale
The wealth management industry is currently experiencing a growing demand for institutional-grade capabilities that can support the creation of personalised client portfolios at scale. This demand stems from the need to adapt to evolving market trends, risks, and opportunities, such as sustainability and climate considerations.
The collaboration between MSCI and Fabric will bring together MSCI’s comprehensive portfolio toolkit and Fabric’s rules-based portfolio construction capabilities. This synergy aims to streamline investment activities, enhance collaboration, provide real-time insights, and increase market transparency. These improvements will enable wealth managers and advisors to serve their clients better, offering tailor-made solutions aligned with their preferences and financial objectives.
Empowering Wealth Managers
Jorge Mina, Head of Analytics at MSCI, expressed excitement about the collaboration, highlighting that it will not only leverage existing content and tools but also accelerate the development of new functionalities related to rules-based portfolio construction. This move aligns with MSCI’s commitment to expanding its market reach and offering a broader spectrum of solutions to meet the diverse needs of institutional and individual investors.
Fabric’s CEO and Co-Founder, Govinda Quish, emphasised the shared mission of the two companies in modernising portfolio design and risk management for the global wealth management community. Their combined resources and expertise are set to redefine how wealth managers design, manage, and optimise client portfolios.
A Bright Future for Wealth Management
Rick Bookstaber, Co-Founder and Head of Risk at Fabric, noted that MSCI is a world leader in investment risk management solutions. Integrating their capabilities is poised to provide wealth managers and advisors with enhanced risk analysis tools, helping clients achieve their investment objectives.
The transaction terms have not been disclosed, and its financial impact is not expected to be significant for MSCI. The acquisition is subject to customary closing conditions and is expected to be finalised in the next quarter.
This strategic partnership between MSCI and Fabric represents a significant step forward in the evolution of wealth management, promising greater customisation, transparency, and effectiveness in serving the diverse needs of investors worldwide.
