In a strategic move to enhance its wealth management capabilities, MSCI, a provider of mission-critical decision support tools and services for the global investment community, has officially announced the signing of a purchase agreement to acquire Fabric, a specialised wealth technology platform.
The acquisition marks a significant step for MSCI in meeting the growing demand from wealth managers and advisors for cutting-edge capabilities to construct personalized client portfolios efficiently.
Fabric, established in 2019, was founded with the mission to cater to the underserved wealth management community by offering top-notch risk and portfolio design technology.
Renowned for its rules-based portfolio construction tools and leveraging the MSCI Multi-Asset Class (MAC) Factor Model and MSCI Private Asset Model, Fabric focuses on providing wealth managers and advisors with a modern platform for portfolio design and risk assessment. This platform enables customisation of portfolios, aligning them with individual investors’ distinct financial goals.
The wealth management landscape is experiencing increasing demands for institutional-quality capabilities that allow the creation of personalised client portfolios at scale. This acquisition positions MSCI to address these demands effectively by combining its total-portfolio toolkit with Fabric’s rules-based portfolio construction capabilities.
The integrated offering aims to streamline investment activities, foster a collaborative experience, provide real-time insights, and enhance reporting, ultimately empowering wealth managers and advisors to better serve their clients.
Fabric CEO and co-founder Govinda Quish said: “Fabric’s mission has always been focused on serving the global wealth management community by modernizing their approach to portfolio design and risk management.
“By bringing together our extensive data, systems, and teams, the combination of Fabric and MSCI aims to redefine how wealth managers design, manage, and optimize their clients’ portfolios.”
The terms of the transaction, including financial details, were not disclosed. However, MSCI anticipates that the financial impact will not be material.
The transaction is slated to close in the next quarter, subject to customary closing conditions. This strategic acquisition aligns with MSCI’s commitment to innovation and meeting the evolving needs of the wealth management industry, positioning it as a key player in providing comprehensive and customisable solutions for wealth managers and advisors.
MSCI analytics head Jorge Mina said: “Today, MSCI offers wealth management tools for home office model portfolio construction, product due diligence, portfolio analysis, advisor goal-based planning, sales enablement proposals, and more. This combination with Fabric will not only enhance the use of our existing content and tools, but accelerate the development of new strategic functionalities related to rules-based portfolio construction.
“This transaction underscores MSCI’s commitment to expanding its market reach and offering a broader spectrum of solutions to meet the diverse needs of both institutional and individual investors.”