MSCI Launches New Multi-Factor Indexes

  MSCI Launches New Multi-Factor Indexes

Business Wire

NEW YORK -- December 3, 2013

MSCI Inc. (NYSE: MSCI) today announced the launch of the MSCI Multi-Factor
Indexes. This innovation offers institutional investors a basis for passively
implementing index-linked multi-factor strategies transparently and

MSCI Multi-Factor Indexes are available in standard combinations provided by
MSCI or as a custom mix created by the client. Both approaches can be based on
underlying flagship indexes such as MSCI EAFE, MSCI ACWI, MSCI World and MSCI
Emerging Markets. MSCI offers investors insight for dynamically managing their
custom Multi-Factor Index through a new analytical tool called IndexMetrics.

“Combining factor indexes makes sense from a diversification standpoint,” said
Remy Briand, Head of MSCI Index Research. “Factor returns have historically
been quite cyclical, with some factors underperforming the market cap-weighted
benchmark for several years in a row. Combining factors has historically
yielded a smoother ride over time.”

Equity factor investing was pioneered in the 1970s based on research, data and
analytics created by Barra – today an MSCI company. In recent years, MSCI has
developed a range of indexes that provide institutional investors with a basis
for implementing a transparent and efficient passive approach to seek the
excess returns historically obtained through active factor investing. In 2008,
MSCI introduced the industry’s first Minimum Volatility Index. Today, more
than USD 60 billion in assets are benchmarked to MSCI Factor Indexes^1.

Alain Dubois, Head of Index Product Development for MSCI, said, “MSCI is the
first index provider to give institutional investors tools that provide an
easy way to analyze and adjust their allocations among factor indexes when
their views of the market change. We are essentially providing them with the
flexibility to actively manage their passive factor portfolios.”

Briand added, “Factor indexes should not be viewed as replacements for market
capitalization weighted indexes. Market cap indexes represent broad and
neutral market exposure. They also aim to minimize turnover and are macro
consistent. They are complementary to factor indexes and can be used for
benchmarking the performance of factor strategies.”

MSCI has published a series of research papers that describe the financial
science behind factor-based investing and the effects of diversifying across
multiple factors, as well as explaining various use cases for factor indexes
by institutional investors considering factor allocations.

  *Foundations of Factor Investing
  *Deploying Multi-Factor Index Allocations in Institutional Portfolios
  *MSCI Index Metrics - An Analytical Framework for Factor Investing

For more information about MSCI Multi-Factor Indexes and the full range of
MSCI Factor Indexes, visit

^1 As of June 30, 2013 according to eVestment, Lipper and Bloomberg

About MSCI

MSCI Inc. is a leading provider of investment decision support tools to
investors globally, including asset managers, banks, hedge funds and pension
funds. MSCI products and services include indices, portfolio risk and
performance analytics, and governance tools.

The company’s flagship product offerings are: the MSCI indices with
approximately USD 7.5 trillion estimated to be benchmarked to them on a
worldwide basis^1; Barra multi-asset class factor models, portfolio risk and
performance analytics; RiskMetrics multi-asset class market and credit risk
analytics; IPD real estate information, indices and analytics; MSCI ESG
(environmental, social and governance) Research screening, analysis and
ratings; ISS corporate governance research, data and outsourced proxy voting
and reporting services; and FEA valuation models and risk management software
for the energy and commodities markets. MSCI is headquartered in New York,
with research and commercial offices around the world.

^1As of March 31, 2013, as reported on July 31, 2013 by eVestment, Lipper and

For further information on MSCI, please visit our web site at


Media Enquiries:
MSCI, New York
Kristin Meza, + 1-212-804-5330
MSCI, London
Jo Morgan, + 44-20-7618-2224
MHP Communications, London
Sally Todd | Christian Pickel
+ 44-20-3128-8515
MSCI Global Client Service:
EMEA Client Service
+ 44-20-7618-2222
Americas Client Service
1-888-588-4567 (toll free)/+ 1-212-804-3901
Asia Pacific Client Service
+ 852-2844-9333
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