Barra Equity Models
Barra products are powered by multi-factor models, a concept Barra first developed in 1975. It is these models that help our products forecast risk for equity, fixed income, cash, and derivative instruments, at both the asset and portfolio level.
Barra risk models are developed by a cross-functional team of mathematicians, statisticians, financial engineers, and investment industry experts. MSCI's research, data management, and production departments consist of more than 400 professionals who are constantly monitoring new securities, global market shifts, and industry trends in every major world market.
Data accuracy, a crucial piece of risk modeling, is one of the elements that sets Barra risk models apart. The data used in our models is developed and refined by teams of experienced professionals who aggregate and cleanse raw data from more than 190 third-party sources around the world.
- Barra US Total Market Equity Model for Long-Term Investors - A next-generation risk model, aimed at helping institutional investors in the US Equity Market. The model includes MSCI's latest research such as the alignment of factors with the investment horizon and new Systematic Equity Strategies factors.
- Barra China International Equity Model(CXE1) - A next-generation fundamental factor model for investors in the Hong Kong and China International equity markets, which refers to China securities for non-domestic investors.
- Barra Asia Pacific Equity Model (ASE2) - A fundamental factor model for investors in the Asia Pacific equity markets. It includes new factors based on Systematic Equity Strategies, dissects classic style factors into more intuitive drivers and offers new innovation that addresses performance issues plaguing traditional equity models.
- Barra South Africa Equity Model (ZAE4) - Captures the dynamics of the South Africa markets through the latest advances in MSCI's research methodologies, including Systematic Equity Strategies.
- Barra Emerging Markets Equity Model (EMM1) - The first Barra model designed to identify the sources of risk and return in the emerging markets. Users of this model can analyze portfolio risk across styles, countries, currencies, and industries over multiple investment horizons.
- Barra US Sector Equity Models (USSM1) - For managers investing within specific sectors in the US equity market. This family of risk models, which incorporates factors based on Systematic Equity Strategies, consists of 10 sector-specific models and an integrated version combining the individual models.
- Barra US Small Cap Equity Model (USSC4) - Designed specifically for managers investing in small capitalization companies in the US. This equity risk model also incorporates factors based on Systematic Equity Strategies.
- Barra Korea Equity Model (KRE3) - The second Barra risk model to include factors based on Systematic Equity Strategies. It also features new local Korean data sets to provide further insight into the drivers of risk and return of Korean companies.
- Barra Japan Equity Model (JPE4) - The first Barra risk model to include factors based on Systematic Equity Strategies, in addition to the traditional style factors.
- Barra Europe Equity Model (EUE4) - Helps identify common sources of risk and return across a broad set of European securities. It also has the new Daily Forecast Horizon model, allowing managers to construct and analyze portfolios in different investment horizons.
- Barra North America Stochastic Factor Model (NAMS1) - Part of the new family of statistical models from MSCI, it complements the Barra Fundamental Factor Models and adapts to changing market conditions, allowing users to uncover stable and transient sources of risk and return.
- Barra Custom Integrated Models - Provide a unique solution where a single model captures broad sources of risk and return across countries, while still addressing the need for granularity in concentrated parts of the investment portfolio.
- Barra Models Direct - Comprehensive sets of Barra risk model data and market data delivered in a standardized text file format.
- Barra Europe Stochastic Factor Model (EURS1) - The first in a family of statistical factor models from Barra. It incorporates an advanced innovative estimation process to provide an alternative view of risk and return that complements the Barra fundamental models, and helps clients overcome many problems commonly associated with statistical factor modeling.
- Barra China Equity Model (CNE5) - Captures short- and long-term dynamics of the Chinese local market and includes the latest advances in risk methodology, allowing institutional investors to align the risk model with their investment processes
- Barra Australia Equity Model (AUE4) - Incorporates the new Volatility Regime Adjustment methodology, enhanced style factors, daily model updates, and deep daily model history, providing portfolio managers a more intuitive understanding of what is driving risk and return in the Australian equity market.
- Barra Canada Equity Model (CAE5) - Part of the family of models that includes the latest advances in risk methodology, Volatility Regime Adjustment, enhanced style factors, and new Gold and Oil factors. This risk model also introduces a multi-industry scheme.
- Barra Global Equity Model (GEM3) - Incorporates the latest advances in our risk methodology that help fund managers construct, manage, and analyze global equity portfolios. In addition, this risk model offers a refined style factor lineup and provides expanded coverage that includes frontier markets.
- Barra Global Equity Model (GEM2 S/L) - Captures the effects of global common factors, such as the world market, styles, countries, industries, and currencies, on portfolio return.
- Barra Asia Pacific Equity Model (ASE2) - Fundamental factor model for investors in the Asia Pacific equity markets.
- Barra Europe Equity Model (EUE3) - Provides a unified perspective on risk across all main European equity markets. It also captures the common characteristics of the expanded European region, such as the Europe market, styles, industries, countries, and currencies.
- Barra US Equity Models (USE4) - The first in a family of models to include the latest advances in risk methodology, providing institutional investors the ability to align factor structure with their investment processes.
- Barra Integrated Model - Helps risk and portfolio managers identify fundamental sources of risk across asset classes, markets, and horizons
- Barra Multiple-Horizon Equity Models - Incorporate daily returns and investment horizons into the factor structure of Barra risk models.
- Barra Single Country Equity Models - Cover the world's major equity markets, offering sources of risk and return specific to local markets.
- Barra Trading Models - Can be used by clients for managing risk over short-time horizons.