Institutional investors worldwide traditionally have tended to focus on the stocks of larger companies, finding them less risky, more liquid and offering greater investment capacity than small-cap stocks. But asset owners and managers increasingly are allocating strategically to the small-cap equity...Read More »
Mar 15, 2017| Risk Management
The United Kingdom is about to begin negotiations over its exit from the European Union. Though the process could take up to two years, the triggering of talks leaves institutional investors to assess how Brexit, at least at the outset of negotiations, may affect their portfolios.Read More »
Mar 13, 2017| Factors
Minimum volatility strategies have historically delivered above-average returns with below-average risk, especially in volatile market environments as have occurred in recent years. During this period, the world also has experienced low interest rates.Read More »
Mar 8, 2017| Emerging Markets
When institutional investors think about Asia’s emerging markets, they tend to pay more attention to the larger and more industrialized economies such as China, Korea and Taiwan. Proportionally less attention is paid to the smaller Southeast Asia nations such as Singapore, Indonesia and Malaysia. Yet these...Read More »
Mar 2, 2017| ESG Research
Buoyed by populist sentiment, regulators around the world are considering ways to close corporate tax loopholes and narrow the gap between the statutory tax rate and what companies actually pay. The effort could have significant consequences, both for corporations and for institutional investors who engage...Read More »
Mar 2, 2017| Fixed Income
Convertible bonds have “bonds” in their name but in reality they are complicated corporate securities with risk characteristics that often have little to do with straight bonds. Are they more like stocks or bonds? And how can investors evaluate and model them?Read More »
Feb 23, 2017| Emerging Markets
Over the last five years, the risk and return profile of emerging markets has started to resemble that of developed markets. That leaves many large asset owners to ask how to structure mandates to take advantage of the variation in the behavior of emerging markets.Read More »
Feb 22, 2017| Real Estate Investing
Among the unknowns hanging on negotiations over the U.K.’s leaving the European Union is whether Brexit will trigger an exodus of banking jobs to Continental Europe and what impact that could have on Britain’s economy. A number of financial institutions have discussed relocating some of their operations,...Read More »
Feb 16, 2017| Models/Client Cases
Many natural-gas traders, including operators of storage facilities, depend on seasonal price spreads to earn reliable returns. Traditionally, they buy natural gas in the summer, when prices fall, and then sell during the winter, when prices go up.Read More »
As institutional equity investors increasingly think about the long term, they may adjust their portfolios to accommodate environmental, social and governance (ESG) concerns in their investment decision-making processes. That can be particularly challenging for the largest investors, such as pension funds and endowments, whose portfolios span the entire equity market.
Jan. 23, 2017
It is widely documented that women, on average, earn less than men for comparable work, so it may surprise you to learn that female CEOs of large companies included in a key global MSCI index made more than their male peers in 2015. However, men received superior options packages in the decade through 2015, and came out ahead in terms of total compensation during that period.
The low interest rate environment continues to send institutional investors on a search for yield. But with the Federal Reserve signaling an increased pace of tightening in 2017, many are reducing interest rate exposure and seeking higher yields in credit instruments.
Jan. 19, 2017
U.S. equity investors in 2016 experienced a roller coaster ride. The U.K.’s vote to leave the European Union and the U.S. presidential election each resulted in sharp market moves. Together, the two events contributed to a shift in the underlying fabric of equity markets starting in the second half of the year.
Jan. 12, 2017
This year may ring the bell on a fundamental rethink for investors. Underlying all the major trends we identified for 2017 is a strategic decision point – do we change the way we think about investing, or is this business as usual in a new order?
msci women on boards 2016 A growing body of research shows that having three women on a corporate board represents a “tipping point” in terms of influence, which is reflected in financial performance. Our analysis from last year looked at a snapshot of global companies in 2015 with strong female leadership, finding that they enjoyed a Return on Equity of 10.1% per year versus 7.4% for those without such leadership.
Emerging market equities have declined 5.4% since the U.S. elections on Nov. 8 (measured in U.S. dollars).¹ But they remain a significant source of the world’s stock-market capitalization and economic activity, constituting 11% of the global investable universe and 40% of the world’s wealth. How much do institutional investors want to allocate to this portion of the market?
A year that was marked by the United Kingdom’s vote to leave the European Union and the United States’ surprise election of Donald J. Trump as president is ending with widespread uncertainty over systemic and geopolitical risk, inflation and economic growth. How can institutional investors address unconventional monetary and fiscal policies worldwide?
Dec. 05, 2016
What effect has the United Kingdom’s vote to leave the European Union had on commercial real estate investments? Because of the lag in real estate valuations, we now finally have enough data to start making an assessment.
Pro-cyclical factors are in, defensive factors are out. That, in a nutshell, describes how the U.S. equity market has responded to the presidential election.
Insights, data and commentary from MSCI Research about global investing, the movement of asset prices, investing for the long term, and risk and return to help investors make better-informed decisions.