Extended Viewer

Research and Insights

Articles by null

    ExxonMobil’s Legal Parry

    Podcast | Feb 23, 2024 | Harlan Tufford

    ExxonMobil filed a legal complaint against two of its own shareholders, who were hoping to put a climate-related proposal to a vote at the company’s upcoming AGM. We discuss why it’s a decision that could have consequences for the wider shareholder community and the companies they invest in.

    Labeled Bonds: Quarterly Market Overview Q4 2023

    Research Report | Feb 21, 2024 | Jakub Malich, Anett Husi

    We assess the latest trends in labeled bonds, from the overall market to specific bond and issuer characteristics, to identify key developments in the rapidly growing and increasingly diverse labeled-bond market. 

    Women on Boards and Beyond: 2023

    Research Report | Feb 20, 2024

    Our annual report highlights trends across markets and sectors for large- and mid-cap companies and provides an overview of the state of diversity on boards and in other corporate leadership roles.

    The Luxury of Love

    Podcast | Feb 16, 2024 | Michael Disabato, Liz Houston

    Valentines day is replete with marketing by luxury brands attempting to capture the eyes of anxious lovers wanting to do right by their partners during the holiday. But what can you know about the product you’re buying from a luxury company? Can you know where its raw materials are sourced? Or where that material is produced? And who’re running these luxurious companies? We discuss all this and more on this week’s episode of ESG now.

    Mapping the Revenue Sources of India’s Equity Market

    2 mins read Quick Take | Feb 15, 2024 | Rohit Gupta

    Countries, sectors and industries that combine higher international revenues and a manufacturing orientation tend to be more export-driven and are likely beneficiaries of the trend toward deglobalization. What’s the case in India’s equity market?

    I Fought the Fed, and the Fed Won

    Podcast | Feb 15, 2024 | Andy Sparks

    With inflation down — though stubborn —and markets still digesting Fed Chair Jerome Powell’s statements after the latest meeting of the FOMC, Andy Sparks, MSCI’s head of portfolio-management research, assesses where we stand in the give and take between central banks and markets. 

    One Size Does Not Fit All in the Office Market

    4 mins read Blog | Feb 14, 2024 | Jim Costello

    Prices have fallen sharply for the U.S. office market, but it would be a mistake to assume that all assets face the same challenges. We examine where buyers and sellers sit on pricing to estimate the extent of owners’ potential losses. 

    EAFE ADRs vs. Shares: How Do They Compare in Tax Efficiency?

    7 mins read Blog | Feb 13, 2024 | Joseph Wickremasinghe

    Wealth managers, interested in adding EAFE equity exposure to a U.S. client’s portfolio but concerned about the potential tax implications? We compared the tax efficiency of EAFE ADRs and shares of the underlying securities.  

    Is Greenium Evaporating in USD Corporate Bonds?

    5 mins read Blog | Feb 9, 2024 | Jakub Malich, Matteo Petrovich, Michael Ridley, Anett Husi

    With the market for sustainable (or labeled) bonds growing rapidly, we assessed their value relative to conventional bonds and found they consistently exhibited a green premium, or “greenium,” though it did diminish over time.

    Cyber Catastrophe Bonds… Wait, What?

    Podcast | Feb 9, 2024 | Federico Darakdjian

    The stakes on data protection and privacy are only getting higher. Hacks, breaches and data leaks are becoming bugbears of the modern corporate world. Insurers offer products for cyber-related incidents, but in a complex, evolving risk landscape, there are a lot of asterisks. We take a look at the current cyber insurance market, and how insurers are de-risking their positions through cyber catastrophe bonds.

    Real Assets in Focus: Grappling with Higher Interest Rates

    6 mins read Blog | Feb 8, 2024 | Tom Leahy

    A rapid rise in interest rates globally rocked the commercial-property market in 2023. We chart the impact on pricing and transaction activity, and discuss what could aid a revival in dealmaking.

    Red Sea Disruptions Could Dampen the European Economy

    2 mins read Quick Take | Feb 7, 2024 | Dora Pribeli, Thomas Verbraken

    What impact could the troubles in the Red Sea have on Europe’s economy and interest rates? We assess the downside risks related to surging freight costs.

    Pulling Back the Curtain on Emissions Reporting in Private Markets

    5 mins read Blog | Feb 5, 2024 | Abdulla Zaid

    With private investments set to play a major role in the transition toward net-zero, we assess the state of emissions reporting in private markets relative to public markets and identify the reporting disparities across asset classes, regions and sectors. 

    The Audit World on Fire

    Podcast | Feb 2, 2024 | Michael Disabato, Jonathan Ponder

    Audit firms have been under scrutiny lately after scandal and concern has led some to worry the vital industry is in trouble. To understand whether fears around an auditor are credible, one must understand how to assess auditor quality. In this episode, we teach you how to assess an audit firm, and answer the question that some are posing: is there a crisis in the audit industry?

    Remapping the Investment World

    Podcast | Feb 1, 2024 | Manish Shakdwipee, Rohit Gupta

    For global investors, the idea of individual country or market allocations isn’t new. But in today’s world, with a dynamic geopolitical map, the rewiring of supply chains and a greater focus on sustainable investing, it may be time for a new approach. 

    Fixed Income Markets in Focus: Bonds in 2024 – A New Paradigm?

    Videos and Visualisations | Jan 31, 2024

    Hear Andy Sparks, Managing Director and Head of Portfolio Management Research, at MSCI, discuss the shift in the bond-equity relationship and more, in the quarterly Fixed Income Markets in Focus.

    What Does EU Taxonomy Reported Data for 2023 Tell Us?

    2 mins read Quick Take | Jan 31, 2024 | Nakul Jadhav

    Last year was a landmark year for sustainable finance and the EU Taxonomy for sustainable activities in terms of what companies had to report. But what conclusions can we draw and how much of an issue were data quality and comparability? 

    US Commercial-Property Distress Swelled in 2023

    2 mins read Quick Take | Jan 30, 2024 | Alexis Maltin

    Troubled assets in U.S. commercial real estate climbed to USD 85.8 billion at the end of 2023, with office and retail properties adding the most trouble in the fourth quarter. We summarize our latest findings on distress in the market.  

    Reimagining Country Investing

    Research Report | Jan 29, 2024 | Rohit Gupta, Anil Rao, Manish Shakdwipee, Hitendra D Varsani

    We introduce an integrated framework to investing in individual country and regional markets, analyzing macroeconomic risks and new growth opportunities as well as the role of sustainable investments in a globally diversified portfolio. 

    Going on a Boeing?

    Podcast | Jan 26, 2024 | Michael Disabato, Harlan Tufford

    One door plug blowout, one emergency landing and zero injuries. For Boeing, quality checks and tailored governance structures aren’t adding up to a great safety record. But looking at the underlying ESG data might shed light on where things might be going wrong.

    Sector Insights from India’s Equity Market

    6 mins read Blog | Jan 23, 2024 | Dinank Chitkara, Rohit Gupta

    A sector-based perspective of the Indian equity market, one of the emerging beneficiaries of global power shifts, indicates the valuation premiums of most sectors are high in historical terms and relative to sectors in other emerging markets.

    Mediating High Outflows in China’s Stock Connect

    2 mins read Quick Take | Jan 22, 2024 | Cheng Lyu, Zhen Wei

    Northbound outflows set a record in the last five months of 2023, primarily exiting the financial, consumer-staples, industrial, materials and information-technology sectors.  

    What Listed Markets Might Be Signaling for Private Real Estate

    2 mins read Quick Take | Jan 19, 2024 | Bryan Reid

    Investors in private real estate might be wondering when the downturn in the market will bottom out. Could the improvement in public-market performance signal that the private market will turn the corner soon? 

    Biodiversity 101

    Podcast | Jan 19, 2024 | Arne Philipp Klug, Gabriela de la Serna

    Biodiversity is everywhere from food production to pharmaceutical drugs, so the biodiversity crisis puts both society and the global economy at risk. And while it is like the climate crisis in its cause, there are complexities and measurement difficulties that make the biodiversity crisis a distinct problem for investors to address compared to the climate crisis. On this episode we sat down with our colleague Arne Klug to understand where this complexity comes from and how can investors go about it when trying to include biodiversity in their investment practices.

    Investment Trends in Focus: Quarterly Roundtable Q1 2024

    Podcast | Jan 18, 2024 | Oliver Marchand, Raina Oberoi, Afsaneh Mastouri, Ashley Lester

    Ashley Lester and team help investors find the connections between — and evaluate the risks and potential opportunities of — AI, geopolitics and the effects of climate change, as well as the growing importance of private capital and continued influence of monetary policy.

    Carbon Credits in 2024

    Podcast | Jan 12, 2024 | Michael Disabato

    The carbon markets have been a provider of hope and despair in the fight against carbon emissions. In 2023, there were concerns around whether the carbon credits being sold actually abated the amount of carbon they claimed to. Yet the market still has promise and changes are being made to the methodologies of carbon credit assessment organizations to address the problems uncovered in 2023. For the first ESG now episode, we sat down with our head of Carbon Markets at MSCI, Guy Turner, to understand how carbon markets actually faired in 2023, what they might look like in 2024, and why carbon credits and offsets will remain an important part of our world’s attempts to decarbonize. 

    What Could Shape Sustainability and Climate Investing in 2024?

    8 mins read Blog | Jan 11, 2024 | Meggin Thwing Eastman, Laura Nishikawa

    MSCI’s Sustainability and Climate Trends to Watch 2024 explores key themes that could shape the world of ESG investing. Here we touch on three of them: extreme weather, the regulatory aspects of AI and investing in nature via the voluntary carbon market. 

    Free-Float Adjustment in Global Equities: A Two-Decade Review

    Research Report | Jan 10, 2024 | Abhishek Gupta, Raman Aylur Subramanian

    How does free float impact the performance and other characteristics of global equity benchmarks?  We examined changes in free float over the last 20 years and found that increases have led to positive price impacts, and vice versa.  

    Inflating Returns with Subscription Lines of Credit

    5 mins read Blog | Jan 9, 2024 | Patrick Warren, Luis O’Shea

    The increased use of subscription lines of credit by general partners in some private-capital funds has lifted returns by squeezing the timeframe over which returns are calculated. We examine buyout, private-credit and real-estate funds to see where the greatest inflation lay.  

    Are Green Bonds More Liquid?

    2 mins read Quick Take | Jan 9, 2024 | ​​Aron Szegedi​, Laszlo Hollo

    Do green and non-green bonds differ in liquidity? In addition to bid-ask spreads, we consider other bond characteristics, such as credit spread, duration, issue size and time since issuance, to isolate and quantify the liquidity effect of the bond’s label. 

    China’s Role in Supply-Chain Strategies

    5 mins read Blog | Jan 8, 2024 | Wei Xu, Manish Shakdwipee

    Are parts of the global supply chain more reliant on China than other parts? We explore which industries and themes may be more dependent on China from a manufacturing-ecosystem and raw-resources perspective.  

    ESG and Climate Reporting with Derivatives

    Research Report | Jan 5, 2024 | Hitendra D Varsani, Yuliya Plyakha Ferenc, Yu Ishihara, Dinank Chitkara, Rumi Mahmood

    No clear guidance presently exists on ESG and climate reporting for derivatives. Using input from market participants, regulatory guidance and a survey of existing research, we propose a framework for more transparent reporting to include derivatives. 

    Markets in Focus: Concentrating on Diversification

    10 mins read Blog | Jan 4, 2024 | Hitendra D Varsani, Andy Sparks, Dinank Chitkara

    Higher equity and bond correlation combined with increased index concentration suggest now is a good time to revisit allocations across regional, country, sector, style and thematic exposures for adequate portfolio diversification. 

    Macro Scenarios in Focus: Adapting to the New Normal

    6 mins read Blog | Jan 3, 2024 | Will Baker, Dora Pribeli, Thomas Verbraken

    Markets seem to be priced for a soft landing, in which inflation returns closer to target levels and recession is avoided. We also consider two potential downside-risk scenarios: a hard landing and a resurgence of inflation. 

    Investment Trends in Focus: Five Key Themes for 2024

    Research Report | Jan 2, 2024 | Ashley Lester

    As 2024 begins, researchers across MSCI have identified five market-moving trends investors will be focused on this year. Penned by MSCI’s chief research officer, Ashley Lester explores each theme in detail.

    Green Bonds and Climate — Towards a Quantitative Method

    Research Report | Jan 1, 2024 | Michael Ridley, Jakub Malich, Meghna Mehta

    While examining use of proceeds remains a key element of analyzing green bonds, we highlight four additional metrics to assess these bonds and their issuers in a more quantitative way. They offer a new set of lenses with which to tackle the analysis.

    RCA Commercial Property Price Indexes (RCA CPPI)

    Research Report | Jan 1, 2024

    The RCA CPPI measure the actual price movements for commercial properties based on exclusive transaction data using repeat-sales regression methodology. 

    An Investor's Guide to Nature and Biodiversity Risks and Impacts

    Research Report | Dec 15, 2023 | Arne Philipp Klug, Sylvain Vanston, Mark Jwaideh

    Investors thinking about biodiversity are asking questions such as, how do I know which holdings are most vulnerable to biodiversity loss? And, can I measure biodiversity risk exposure across my portfolio? We aim to help them start finding answers. 

    The Sustainability and Climate Trends to Watch for 2024

    Podcast | Dec 15, 2023 | Liz Houston

    We think 2024 is going to be a big year! From extreme heat hitting home and work, to the frothy wonderland of AI bumping against data privacy risks and scarce talent, to the role that private capital is going to play in the climate transition, and so much more. Join us as we take a sneak peek at next year's sustainability and climate trends.

    COP28: Key Takeaways for Investors from the Global Climate Summit

    Research Report | Dec 14, 2023 | Oliver Marchand, Linda-Eling Lee, Sylvain Vanston, Chris Cote, Mathew Lee, Elchin Mammadov

    COP28 concluded with an agreement for countries to transition away from fossil fuels, marking a historic pivot away from the primary sources of energy that have powered society for nearly 200 years. How can countries — and investors — address these goals? 

    COP28: The Beginning of the End for Fossil Fuels?

    Podcast | Dec 14, 2023

    While the media focused on the battle over the wording of the final agreement, there was actually a lot of progress that flew further under the radar, but may have a greater impact on investors. Linda-Eling Lee and Guy Turner share their experiences on the ground in Dubai and what the outcomes may mean for investors.

    2024 Trends to Watch in Real Assets

    8 mins read Blog | Dec 13, 2023 | Will Robson, Alexis Maltin, Jim Costello, David Green-Morgan, Tom Leahy, Benjamin Martin-Henry, Bryan Reid

    After the market dislocation of 2023, investors will be hoping for a calmer 2024 in commercial real estate. We identify five key influences to help investors navigate the challenges and opportunities ahead.  

    Assessing Exposures and Risks in the Middle East

    3 mins read Quick Take | Dec 13, 2023 | Ashish Lodh

    Geopolitical events tend to have a spillover effect on multinational companies in the affected geographic region. In view of the Israel-Gaza crisis, we analyzed the economic exposures and risks of companies in the MSCI ACWI IMI to the Middle East. 

    ​​Labeled Bonds: Quarterly Market Overview Q3 2023​

    Research Report | Dec 12, 2023 | Jakub Malich, Anett Husi

    The labeled-bond market brings together issuers that may wish to raise capital to finance various environmental and social commitments and build rapport with sustainability investors. What were the key developments in this market in the third quarter of 2023? 

    Assessing Biodiversity-Related Risks in APAC

    2 mins read Quick Take | Dec 8, 2023 | S.K. Kim, Jurgita Balaisyte

    As the link between biodiversity and climate change becomes increasingly apparent, companies with operations or assets in biodiversity-rich areas may find themselves under growing scrutiny. We assessed companies in APAC to identify where the risks lay.  

    Companies Reliant on Agricultural Products May Face Lower Policy Risk

    2 mins read Quick Take | Dec 8, 2023 | Cole Martin, Ahasan Amin

    Food, beverage and food-retail companies have often been exempted from emissions-reduction schemes, but that may change soon. And if it does, investors might need to assess a new set of risks for these companies, such as carbon tax. 

    Utilities Lean into Adaptation Bonds

    Podcast | Dec 8, 2023 | Meghna Mehta

    As extreme weather events become more prevalent, the utilities sector is on the front lines. From investing in microgrids to burying transmission lines, there are ways to help climate-proof infrastructure. But funding is key, and it looks like the green bond market is a good a place to start.

    Householding: One Client, Many Accounts

    Research Report | Dec 7, 2023 | László Arany, Laszlo Hollo, Joseph Wickremasinghe, Raina Oberoi

    Householding applies one target asset allocation across all family assets and manages them holistically for the highest practicable after-tax return. We compare the outcomes of two use cases for householding vs. a single-portfolio approach. 

    Green-Bond Issuance: MENA vs Global

    2 mins read Quick Take | Dec 7, 2023 | Vishakha Pandey

    Green-bond issuance in the MENA region has expanded rapidly in recent years. How does the use of proceeds compare to global green-bond issuers and who’s leading on the credibility front? 

    Assessing Corporate SDG Alignment: Identifying Gaps and Opportunities

    Research Report | Dec 6, 2023 | Namita Nair, Jurgita Balaisyte

    In 2015, the UN launched its Sustainable Development Goals (SDGs) to drive large-scale, positive environmental and societal impact. We mapped these SDGs to four broad themes — environment, society, economy and governance — to analyze corporate alignment patterns.

    Surveying the Medley of Sub Lines in Private Funds

    5 mins read Blog | Dec 5, 2023 | Patrick Warren

    Visibility on the use of subscription lines of credit is of key importance to limited partners in private funds. We examined a selection of real-estate, venture-capital and buyout funds to note some key differences between and within private-capital strategies. 

    On the Ground at COP28

    Podcast | Dec 5, 2023 | Michael Disabato, Oliver Marchand

    We are on the ground at COP 28!! Right now, in the UAE, most of the world’s power brokers are gathered to talk about the climate emergency, the world’s plans for lowering emissions, and everything in between. For this episode, we interviewed our Global Head of Climate Research, Oliver Marchand, who is at COP 28: meeting folks and having talks. He told us what he has been seeing and how he thinks the talks are proceeding.

    Powering up Energy Storage

    2 mins read Quick Take | Dec 5, 2023 | Siyu Liu

    If the world is to scale up solar and wind energy use, grid-scale battery storage demand will need to increase significantly. To be successful, battery companies will need to manage several sources of risk, from resource constraints to operational hurdles. 

    Understanding Institutional Investors’ Perspective on ESG Ratings

    Research Report | Dec 4, 2023 | Mehul Thakkar, Xinxin Wang, Guido Giese

    Understanding ESG risks and opportunities from the perspective of investors could be invaluable for issuers. We examine how investors think about ESG factors and how they incorporate them into their investment processes. 

    EM Emissions Trading Schemes Await Wider Reporting

    2 mins read Quick Take | Dec 4, 2023 | Siyao He, Kenji Watanabe, Antonios Panagiotopoulos

    As more emerging-market countries consider launching emissions trading schemes, we examine how effective they could be in helping to track corporate emissions reduction progress and analyze the effect on country-level emissions trends. 

    The Climbing Costs to Insure US Commercial Real Estate

    3 mins read Blog | Nov 29, 2023 | Bryan Reid

    Insurance costs as a share of income have doubled in the last five years, adding another challenge for property investors. We examine the trend and the variation across U.S. states.

    Emissions Exclusion in Private Equity: How Is Tracking Error Taking It?

    5 mins read Blog | Nov 29, 2023 | Abdulla Zaid

    When it comes to climate investing in private equity, there’s more to negative screening than simple sector-wide exclusions. Our analysis underscores the value that incorporating carbon-based solutions can have on carbon footprint at the portfolio level. 

    Equity-Factor Commentary: A ‘Magnificent 7’ Factor?

    6 mins read Blog | Nov 29, 2023 | George Bonne, Waman Virgaonkar, Jun Wang

    Would adding a Magnificent 7 factor have improved an equity factor model’s performance in the concentrated U.S. equity markets of the last few years? Our analysis shows that the model’s risk-forecast accuracy would not have materially increased.  

    Carbon Footprinting for Banks

    Research Report | Nov 28, 2023 | Guilherme de Melo Silva, Xinxin Wang, Guido Giese

    Assessing the carbon footprint of their lending and investment activities is crucial for banks to achieve stated net-zero targets. Using a fictious bank’s balance sheet, we show how MSCI Total Portfolio Footprinting can help calculate financed emissions.

    MSCI MarketAxess Tradable Corporate Bond Indexes: A Peek Under the Hood

    Research Report | Nov 22, 2023 | Rohit Mendiratta, Ray Wang, Afsaneh Mastouri

    We look deep into these indexes to determine what’s led to their showing characteristics, such as duration, spread and yield, similar to those of the parent index, as well as similar risk-adjusted performance.

    How Do Small Caps Fit into a Deglobalized World?

    2 mins read Quick Take | Nov 22, 2023 | Saurabh Katiyar, Ashish Lodh

    In response to deglobalization, multinational corporations are making changes to their logistics networks. Using MSCI Economic Exposure data, we examine how small-cap stocks around the world may be impacted. 

    The Apple-fication of Investing

    Podcast | Nov 22, 2023 | Raina Oberoi, Joseph Wickremasinghe

    Listen in on an in-depth discussion about the growing demand for and personalized tax-efficient strategies from wealth-management clients — driven by technological revolution and the coming, intergenerational transfer of wealth.

    How Canadian Asset Owners Are Seizing Investment Opportunities as Risks Evolve

    Blog | Nov 16, 2023 | Henry Fernandez, Ashley Lester, Raman Aylur Subramanian, Chris Cote

    Attendees at the recent MSCI Canadian Institutional Investor Forum discussed and debated the challenges and opportunities created by massive structural, macroeconomic, societal and technological shifts in the investment landscape.

    Tracking APAC ESG Corporate Disclosure Frameworks Against International Developments

    Research Report | Nov 16, 2023 | Yu Ishihara

    The development of corporate sustainability disclosure frameworks is well underway in APAC, but the absence of standardized and harmonized frameworks may result in misaligned disclosures across markets, posing challenges for companies and investors. 

    Who Benefits from Rewiring Supply Chains?

    5 mins read Blog | Nov 15, 2023 | Saurabh Katiyar, Anshul Kamra, Emilio Herrera

    Certain industries are more susceptible to the effects of deglobalization. We explore how investors can identify potential beneficiaries of global supply-chain realignment considering industry, thematic and structural characteristics.

    Is Dispersion in Small Caps Linked to Selection Opportunities?

    2 mins read Quick Take | Nov 15, 2023 | Saurabh Katiyar, Ashish Lodh

    Across regions — U.S., international and emerging markets — small-cap stocks have displayed higher cross-sectional volatility than other market-cap segments. Small caps’ wide dispersion indicates potentially fruitful stock-selection opportunities.

    Sustainable-Debt Issuers on a More Credible Decarbonization Path, but Is It Enough?

    7 mins read Blog | Nov 13, 2023 | Jakub Malich, Vishakha Pandey, Anett Husi

    Corporate decarbonization targets without capital commitments can lack credibility, and issuers of labeled corporate bonds led other bond issuers on climate targets. But just how well did these issuers perform in our assessment? 

    ESG and Climate in Focus: Balancing Climate and Financial Goals in Fixed Income

    2 mins read Quick Take | Nov 13, 2023 | Ray Wang

    In a time of volatile fixed-income markets, how well did the MSCI Investment Grade Corporate Bond Indexes perform in terms of meeting their climate objectives?  

    (Bottled) Water, Water Everywhere

    Podcast | Nov 10, 2023 | Cole Martin

    We’re thirsty, y’all! In a year, we drink 350 billion liters of bottled water, most of it from plastic. But it’s a product with a hefty environmental footprint, and big climate risks.  We take a look at what might lie ahead for companies and investors.

    Using Derivatives to Scale China and Emerging Markets ex China

    6 mins read Blog | Nov 9, 2023 | Rohit Gupta, Hitendra D Varsani

    China’s large share of emerging-market (EM) equities and its falling correlations with EM are leading some investors to allocate separately to the two universes. A tactical overlay of futures and swaps could be used to adjust regional exposures. 

    Real Estate Investors: Stuck in the Middle with You

    Podcast | Nov 9, 2023 | Jim Costello

    Richard Hill of Cohen & Steers joins MSCI’s Jim Costello to discuss the changing perceptions of the commercial-property market, from dull and boring to dynamic and complex — and the current set of risks and potential opportunities.

    Assessing the Health of US Real Estate’s Loan Collateral

    5 mins read Blog | Nov 8, 2023 | Fritz Louw

    How impactful will the coming wave of U.S. property-loan refinancing be? Two significant shifts have characterized the real-estate debt market over the past 18 months: a drop in property values and a corresponding change in the availability of debt financing. 

    Small Caps’ Big Story in China

    5 mins read Blog | Nov 7, 2023 | Zhen Wei

    The China A shares market has grown rapidly, along with the number of small-cap stocks. We compare a market-cap-coverage approach to index construction vs. a fixed-number approach and find the former more consistently captured small-size exposure. 

    The Future for Oil and Gas Producers

    Podcast | Nov 3, 2023 | Michael Disabato, Chris Cote

    Some say oil demand is soon to peak. Well, if that is true, why are some oil and gas producers growing their reserves? If there is uncertainty on how oil will perform in the future, how are oil and gas companies positioning themselves amid an ambiguous low-carbon transition? We try to answer these questions on this episode of ESG now.

    Fixed Income Markets in Focus: Weighing Bonds in a Tense Market Environment

    Videos and Visualisations | Nov 2, 2023

    Hear Andy Sparks, Managing Director and Head of Portfolio Management Research, at MSCI, discuss this and more in the quarterly Fixed Income Markets in Focus.

    How Asset Owners Are Preparing for the New Era of Investing

    8 mins read Blog | Nov 2, 2023 | Ashley Lester, Raina Oberoi, Andy Sparks, Peter Shepard

    Key insights from the recent MSCI Institutional Investor Forum highlight how forces of disruption are driving asset owners to evolve their assessment of risks and how developments in AI can further blend quantitative and qualitative investment analysis.

    Finding Value: Understanding Factor Investing

    Research Report | Nov 1, 2023 | Anil Rao, Raman Subramanian, Abhishek Gupta, Altaf Kassam

    We examine how value investing could be implemented in a passive portfolio, using three generations of value indexes as a starting point for creating investment vehicles: traditional value, value- or fundamentally weighted and high-exposure value.

    Human-Rights Due Diligence: Companies’ Preparedness for the EU’s CSDDD

    5 mins read Blog | Oct 31, 2023 | Leslie Swynghedauw, Aura Toader, Gabriela de la Serna

    The EU’s proposed CSDDD could substantially up the stakes in human-rights law for companies and investors. Our research found that many of those in scope for CSDDD fell short on baseline practices to prevent human rights abuses. 

    Measuring Tax Alpha

    Research Report | Oct 27, 2023 | László Arany, Laszlo Hollo, Joseph Wickremasinghe, Raina Oberoi

    The concept of tax alpha can help a wealth manager explain a client’s after-tax performance. We propose two frameworks to provide transparency around the after-tax attribution calculation used to measure tax alpha.

    The Retail’s Doctor Will See You Now

    Podcast | Oct 27, 2023 | Gabriela de la Serna

    You trust a retail store to be convenient. You can walk in and get basically anything you need - be it food, clothes, face wash, batteries...whatever. Retail companies have built their brands on that convenience and affordability factor. But would you trust a retail company to be your healthcare provider? Well, they are betting on that - Amazon, Walmart, and others are getting into the healthcare game. And in this episode, we discuss what it might look like to have an Amazon employee administer a flu test.

    How Have Tradable-Bond Indexes Helped Investors Position in the Credit Market?

    Research Report | Oct 25, 2023 | Afsaneh Mastouri

    Tradable-bond indexes consist of the most liquid subset of corporate bonds. Maintaining sector and credit-bucket allocations consistent with the underlying benchmark, these indexes may help investors track the market while positioning in more-liquid securities.

    Style Factors for Private Real Estate–Beyond Property Type and Location

    Research Report | Oct 24, 2023 | Bryan Reid, Fritz Louw, Will Robson

    For many real-estate investors, property-type and geography segmentations are the primary lens through which they measure and manage their portfolios. But could real-estate style factors play a role in helping investors manage their portfolios more systematically? 

    Practical Considerations for Calculating Portfolios’ Carbon Footprint

    5 mins read Blog | Oct 20, 2023 | Xinxin Wang, Helen Droz, Oliver Marchand, Guido Giese

    Measuring financed emissions is crucial for climate disclosure, but not always straightforward. Proper data alignment and timeliness are essential to help investors make informed decisions and contribute to effective climate action.

    The Five Stories of ESG: A Recap Episode

    Podcast | Oct 20, 2023 | Michael Disabato, Harlan Tufford, Chris Cote, Yu Ishihara, Antonios Panagiotopoulos, Mathew Lee

    This week, we are returning to five stories we have already covered to see what progress has been made (if any!): The Adani Group and its attempt to address a short seller report that questioned the group’s governance that led to a massive loss in market share; the United Auto Workers strikes and the continued struggle in the auto industry; the Inflation Reduction Act and the trillions of dollars of capital is supports; what the EPA’s methane rule has done for the gas industry in the US; and how Exxon has changed after having three seats of its 12 member board taken by over by Engine No. 1, an activist investor worried about carbon emissions.

    A Roadmap to Personalizing Model Portfolios: Scaling with Purpose

    Research Report | Oct 19, 2023 | Yuliya Plyakha Ferenc, Ashish Lodh

    High-net-worth investors are seeking portfolios tailored to their financial goals, personal values and tax situation. Wealth managers need scalable solutions. We explore using factor, thematic and sustainable investing to customize portfolios.    

    Low Volatility over the Market Cycle: Understanding Factor Investing

    Research Report | Oct 18, 2023 | Mehdi Alighanbari, Stuart Doole, Lokesh Mrig, Durga Shankar

    Drawing on 35 years of data, we show that the fundamental characteristics of the MSCI Minimum Volatility Indexes have remained consistent with the expected behavior of the low-volatility factor — to perform well in turbulent markets.