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 cost-effectively. 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 www.msci.com/factorindexes. ^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 Bloomberg For further information on MSCI, please visit our web site at www.msci.com Contact: Media Enquiries: MSCI, New York Kristin Meza, + 1-212-804-5330 or MSCI, London Jo Morgan, + 44-20-7618-2224 or MHP Communications, London Sally Todd | Christian Pickel + 44-20-3128-8515 or MSCI Global Client Service: EMEA Client Service + 44-20-7618-2222 or Americas Client Service 1-888-588-4567 (toll free)/+ 1-212-804-3901 or Asia Pacific Client Service + 852-2844-9333
MSCI Launches New Multi-Factor Indexes
Press spacebar to pause and continue. Press esc to stop.