Following this announcement, Fabris’c flexible wealth technology will be combined with MSCI’s investment portfolio services in order to optimise and streamline portfolio construction, as well as sales enablement. This process will take place with the aim of bringing customisation at scale to the overall global wealth management industry.
Fabric represents a wealth technology platform that specialises in portfolio design, personalisation, and analytics for wealth managers and advisors. The company provided a previously underserved wealth management community with secure and efficient leading risk and portfolio design technology and management.
At the same time, Fabric delivers its customers a platform that leverages the MSCI Multi-Asset Class (MAC) Factor Model, as well as the MSCI Private Asset Model. The firm will continue to focus on providing wealth managers and advisors with a platform for modern portfolio design and risk assessment in order to personalise portfolios and optimise the manner in which individual investors achieve their financial objectives by meeting their needs, preferences, and expectations. Fabric’s suite of solutions will also enable MSCI to accelerate the development of new strategic functionalities related to rules-based portfolio construction, as the company will continue its expansion process in market reach, as well as offering a broader suite of services.
As wealth managers and advisors from the industry demand the delivery of institutional quality capabilities in order to develop customisable client portfolios at scale and keep pace with the evolving trends, risks, and opportunities that appear in the markets (such as sustainability, climate, and more), both companies will focus on meeting those needs and to optimise their overall experiences.
The integration of Fabric’s rules-based portfolio construction offerings with MSCI’s portfolio toolkit is expected to improve the manner in which wealth managers and advisors streamline investment activities, in addition to enabling a collaborative experience and reports. At the same time, the collaboration will give them the possibility to provide real-time delivery of insights in order to improve their customer experience by meeting their needs and bringing more transparency to the markets.
Furthermore, the deal will enable MSCI and Fabric’s combined capabilities to develop wealth managers’ abilities to consistently and securely implement their investment guidance, while delivering customisation at scale and remaining compliant with the requirements and laws of the industry at the same time.
The terms and conditions of the transactions were not disclosed, and the financial impact of the acquisition is not expected to be material to MSCI. In addition, the transaction is set to close during the next quarter, as it is currently subject to customary closing conditions.
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