Investors are not getting paid for taking on carbon risk according to New Zealand Super, prompting the fund to move its global passive equities portfolio to low carbon.
As China readies for its five-yearly leadership reshuffle, global investors are watching to see how they’re poised to manage the world’s second-largest economy as it faces up to its debt dilemma.
MSCI research has shown that, among top-performing funds, more than half of active returns come from factors, rather than manager skill, and style factors have the biggest impact.
MSCI’s long-awaited decision to include China’s A shares in its emerging markets and ACWI indices will affect more than $1.6 trillion in funds that track the MSCI Emerging Markets In
MSCI ESG Research has seen growing demand from institutional investors for data on tax-related risk. In response, it has added data such as geographic revenue transparency to its ratings.
The implications for investors of the inclusion of China A-shares in the wider MSCI indexes, an inevitable outcome, will be discussed at the Fiduciary Investors Symposium at Yale in October.
The debate about the effect of pay inequality on both the financial and real-world markets is about to get a whole lot hotter this year.
While divestment is a useful tool to communicate concerns of climate risk to stakeholders, it is not an optimal investment strategy, in part because it ignores short-term benchmark risk. A research paper by MSCI provides a framework for evaluating ways to reduce two dimensions of carbon exposure – current carbon emissions and potential future emissions... Read more »
New research by MSCI shows a rare insight into whether the factor phenomenon, driving development market equities beta, is at play in emerging markets. The research uses the Barra Emerging Markets Equity Model to look at the drivers of performance of emerging markets, and analyses the returns of active emerging market managers to identify the... Read more »
Long-horizon investors can withstand macro-economic volatility and so should tilt towards strategies that are exposed to that, including value, small cap and momentum. Oleg Ruban, vice president in the applied research team at MSCI says this validates factor-investing and factor-based asset allocation for these investors. Appropriate asset allocation requires explicit attention be paid to... Read more »
The $1.3 trillion Government Pension Investment Fund of Japan will use factor investing, or smart beta, as a third way of implementing equity mandates, alongside active and passive, following a six-month research project conducted by MSCI that investigated how to best implement the growing interest in factor exposures. The research project conducted by MSCI... Read more »
This paper by MSCI creates a framework in order to answer the question: given a portfolio of managers, how does the active risk of each manager relate to the active risk of the portfolio? Asset owners often measure manager risk (the active risk of each manager) and have difficulty relating it to the contribution each... Read more »