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    Saudi Equities — Five-Year Milestone and the Road Ahead

    5 mins read Blog | Jun 21, 2024 | Saurabh Katiyar

    Since inclusion in the MSCI Emerging Markets Index in 2019, the Saudi equity market has evolved, offering an expanded and more diversified opportunity set. Vision 2030 has the potential to build on this progress, but risks and challenges remain.

    What is impact materiality?

    Podcast | Jun 21, 2024 | Michael Disabato, Meggin Thwing Eastman

    What is impact materiality, you ask? And how is it different from financial materiality? A fine and important question, listener! In this episode we take you through all the details you need to parse through the most important sustainability-jargon out there. Including, an explanation of the EU's Corporate Sustainability Reporting Directive, or the CSRD, which has its first required reporting cycle due next year.  

    Incorporating Sector Investing in Portfolio Management

    Research Report | Jun 20, 2024 | Abhishek Gupta, Dinank Chitkara

    Over the last 20 years, most U.S. sectors had low performance correlations, suggesting that sector rotation strategies had the potential to improve portfolio return or that combining less-correlated sectors had the potential to reduce portfolio risk over that period. 

    Making the Most of the (Electrical) Grid You’ve Got

    Podcast | Jun 20, 2024 | Mathew Lee

    The Inflation Reduction Act provides large incentives for a shift to clean energy in the U.S. MSCI teamed up with the Rocky Mountain Institute to investigate its effects on utilities.

    Valuation and Sale-Price Comparison 2023

    Research Report | Jun 19, 2024 | Girish Walvekar, Vinay Kakka

    Investment performance is measured using transaction prices in most asset classes. But real estate is illiquid and heterogeneous, so valuations and sales prices can differ. Our annual report compares valuations and sale prices in global real estate.  

    Small Caps’ High Emissions Intensity — Turn Lemons into Lemonade?

    2 mins read Quick Take | Jun 19, 2024 | Saurabh Katiyar

    Small-cap firms that adopt science-based targets and increase green revenues could be viewed as turning the lemons of high emissions into the lemonade of low-carbon transition, broadening the opportunity set for investors supporting decarbonization.   

    How Real-Estate Debt Funds Have Fared in the Downturn

    2 mins read Quick Take | Jun 17, 2024 | Will Robson

    We examine the results of the newly launched MSCI Europe Quarterly Private Real Estate Debt Fund Index to identify which loan strategies drove returns in 2023 and how the performance compared against real-estate equity funds in Europe.

    Borrowed Time? Downside Scenarios on the US Debt Overhang

    Blog | Jun 14, 2024 | Dora Pribeli, Thomas Verbraken

    The initiation of the rate-hike cycle by the Federal Reserve has positioned U.S. monetary policy as a major driver of financial markets. What could two downside scenarios for financial markets as investors consider their path forward? 

    Carbon Footprinting Demystified

    Podcast | Jun 14, 2024 | Michael Disabato, Carrie Wang

    When it comes to climate altering carbon emissions, investors, like asset managers and banks, used to only measure their direct carbon emissions from their buildings and purchased electricity. But now, they are being asked by regulators, stakeholders, and clients to report on the emissions associated with their investment portfolios – a much more complicated and vital task. In this episode, guest Carrie Wang explains to host Mike Disabato why portfolio carbon footprinting is so important to the future of investing and so complicated.

    MSCI’s 2024 Capital for Climate Action EMEA Conference: Key Takeaways

    8 mins read Blog | Jun 13, 2024 | Ashley Lester, Chris Cote

    Climate is no longer just a risk for the future but also an opportunity to invest now, stressed speakers at our Capital for Climate Action EMEA Conference, which brought together investors and financial institutions to discuss the importance of investment and finance in speeding the low-carbon transition.

    Navigating the Sustainability Shift: A Challenge for Fixed-Income Investors

    Research Report | Jun 12, 2024 | Jarrad Linzie, Subhajit Barman

    Bond investors are grappling with the challenge of balancing fiduciary responsibilities with their commitment to sustainability. Could following a decarbonization glidepath, or reinvesting cash flows to direct bond portfolios toward a climate target, help? 

    Better Governance Linked to Stronger Fundamentals in Japan

    2 mins read Quick Take | Jun 12, 2024 | Drashti Shah, Naoya Nishimura, Manish Shakdwipee

    Better governance practices by Japanese companies appear to be linked to stronger fundamental metrics, a possible contributor to the recent rally in Japanese equities.  

    Steering Toward an Aligned Portfolio

    Research Report | Jun 11, 2024 | Kenji Watanabe, Anthony Chan, Kuldeep Yadav, Siyao He, Anett Husi, Tanguy Séné, Sylvain Vanston

    Using MSCI Climate Change Metrics and the Net Zero Investment Framework, we assessed listed companies in developed and emerging markets to see how well they were aligned with the goals of the Paris Agreement and global net-zero emissions by 2050.

    AI Portfolio Insights and the Future of Risk Management

    Research Report | Jun 10, 2024 | Andrew DeMond, Manuel Rueda, Greg Recine, Samuel López, Vicente Albíter, Will Baker, Zach Tokura

    The role of risk management for institutional investors is evolving. Risk leaders are looking to broaden their teams’ focus beyond traditional risk measurement and increase their influence with investment teams. How could AI help? 

    Financing the Climate Transition

    Research Report | Jun 10, 2024 | Guido Giese, Elchin Mammadov, Manish Shakdwipee, Kumar Neeraj

    Historically, climate investing has focused on portfolio decarbonization, but investors are increasingly turning to a “finance-the-transition” approach, seeking to invest in transition opportunities. The two approaches are not exclusive and best used hand in hand. 

    A Cheat Sheet on Climate Funds

    Podcast | Jun 7, 2024 | Rumi Mahmood

    They may not be new, but climate funds have recently hit their stride. From managing transition risk, to targeting technology opportunities, to aligning with the Paris agreement – these funds come in all shapes and sizes and with pretty diverse objectives. On this episode we catch you up on where climate funds stand today, and how differently they’re evolving in public and private markets.

    The First Core Carbon Principles-Qualifying Projects — the VCM Steps on the Gas

    6 mins read Blog | Jun 6, 2024 | Tristan Loffler, Konstantina Stamouli, Jamie Saunders

    The Integrity Council for the Voluntary Carbon Market has announced the first set of projects that qualify for its Core Carbon Principles, marking a major milestone for the voluntary carbon market and one that could pave the way for a bifurcated market. 

    Identity Check — ESMA’s New Name Guidelines for ESG and Sustainability-Related Funds

    Blog | Jun 5, 2024 | Rumi Mahmood, Shuang Guo

    ESMA’s new fund-naming guidelines could impact one in three SFDR Article 8 and 9 funds, necessitating name changes or adherence to new investment thresholds and fossil-fuel exclusions for compliance. 

    MSCI’s 2024 Capital for Climate Action APAC Conference: Key Takeaways

    8 mins read Blog | Jun 4, 2024 | Xiaoshu Wang, Sylvain Vanston

    At our recent APAC climate conference, which brought investors, companies and financial institutions together, discussion focused on financing decarbonization, the usefulness of looking beyond emissions and the development of biodiversity metrics. 

    Attribution for Implied Temperature Rise

    Research Report | Jun 3, 2024 | Xinxin Wang, Guido Giese, Drashti Shah

    MSCI Implied Temperature Rise (ITR) can be used to assess the temperature alignment of companies and portfolios with global climate goals. Here, we offer an attribution framework to understand what causes a portfolio’s ITR to change over time.

    Tracking the Internationalization of Chinese Companies

    5 mins read Blog | Jun 3, 2024 | Cheng Lyu, Wei Xu

    Outbound investment from China has grown steadily in recent years, and Chinese companies with the highest exposure to international revenue sources have outperformed the broader China market.

    Investors Are Watching the EU Elections

    5 mins read Blog | May 29, 2024 | Yuliya Plyakha Ferenc

    The 2024 European parliamentary elections could mark a shift in the EU's political landscape, potentially impacting key policies such as the European Economic Security Strategy and the European Green Deal.  

    Transparency Is King When Using Carbon Credits

    8 mins read Blog | May 28, 2024 | Ben St. Laurent, Jamie Saunders, Laura Buenaventura

    Although transparency around the use of carbon credits is improving, variations in rules across jurisdictions can add complexity and an extra reporting burden for companies, and make it harder for investors to report on credit use across their portfolio. 

    APAC Climate Action Progress Report

    Research Report | May 28, 2024 | Xiaoshu Wang, Jakub Malich, S.K. Kim, Anthony Chan, Kuldeep Yadav, Siyao He, Feifan Huang, Kenji Watanabe

    APAC firms are increasingly disclosing value-chain emissions and climate targets, reflecting progress in climate transparency. Smaller companies, however, lag in this area, and potentially face growing investor and regulatory pressure for disclosures. 

    How Prepared Are Markets for a Low-Carbon Transition?

    2 mins read Quick Take | May 27, 2024 | Manish Shakdwipee

    With climate change amplifying, global markets are facing uneven readiness for the low-carbon transition. A capital shift from emission-intensive assets to zero-carbon alternatives could redefine market performance and business winners. 

    High Speeds in Slow Lanes: A Deep Dive into Ginnie Mae VA Loans

    7 mins read Blog | May 24, 2024 | Yihai Yu, Yao Zhang

    Despite the recent pause in the Federal Reserve’s aggressive monetary tightening, rates remain at their current high level and refinance risk has emerged in Ginnie Mae securities made up of loans backed by the U.S. Department of Veterans Affairs. 

    Emerging Markets Boost Global Equity Supply

    2 mins read Quick Take | May 24, 2024 | Rohit Gupta, Stuart Doole

    The global number of publicly traded firms has grown steadily for more than two decades, but not consistently across regions. The variations in supply patterns have translated to differences in buyback yields and EPS growth rates.

    Stop! In The Name Of Sustainability Funds (i.e., ESMA’s New Guidelines)

    Podcast | May 24, 2024 | Meggin Eastman, Simone Ruiz-Vergote

    Maybe a rose by any other name would smell as sweet, but that’s not going to fly for sustainability funds in the EU. On this episode we break down ESMA’s latest fund guidelines and discuss their place in a regulatory landscape with all kinds of moving pieces.

    Asia-Pacific Leans into Developing Low-Carbon Technology

    2 mins read Quick Take | May 23, 2024 | Kuldeep Yadav, Kenji Watanabe

    Based on MSCI Low Carbon Patent Scores, Asia-Pacific companies are leading the charge in low-carbon technology, with superior patent-quality scores in renewable-energy and energy-efficiency technologies.

    The Best Time to Plant a Tree Is 20 Years Ago

    Podcast | May 23, 2024

    How does Adam Gibbon of AXA IM balance climate impact with investment results? We get his take on the voluntary carbon markets, and how he assesses potential opportunities for his fund’s portfolio.

    IRA Boosts US Utilities’ Plans to Grow Renewables and Storage

    6 mins read Blog | May 22, 2024 | Mathew Lee

    U.S. utilities are increasing investments in solar, wind and battery installations. Investors can learn more about a company’s transition strategy from these energy-generation plans than from tracking past performance on emissions. 

    Opportunities Through Nature-Based Solutions in APAC, but Shortage of Projects

    2 mins read Quick Take | May 21, 2024 | Siyao He, Jurgita Balaisyte

    Nature-based solutions have emerged as a potential tool in the battle against climate change. We explore their viability in the APAC region.

    Revenge of the Appraiser: The Power of Valuations

    5 mins read Blog | May 20, 2024 | Willem Vlaming

    Getting a read on price change during a deal drought is paramount for commercial-property investors. Can valuation-based indexes buttress transaction-based gauges of pricing in turbulent times? 

    Can Airlines Go Green?

    Podcast | May 17, 2024 | Michael Disabato, Gabriela de la Serna

    Airlines are part of a hard to abate industry for a reason, as there is not one straightforward path to decarbonization. In this episode, we discuss the options that airlines have to reduce their direct emissions in the coming decades – and we tell you which ones are more likely to be more viable.

    Voluntary Carbon Markets — the APAC View

    2 mins read Quick Take | May 17, 2024 | Anthony Chan, Jamie Lambert

    Amid the debate over the voluntary carbon market’s role in corporate decarbonization, we investigated trends in the Asia-Pacific region. Which are the markets leading the way and what role are the region’s authorities playing? 

    Real Assets in Focus: Are We Nearly There Yet?

    5 mins read Blog | May 15, 2024 | Will Robson, Niel Harmse, Fritz Louw, Willem Vlaming

    Investors are still waiting for a recovery in commercial real estate. We outline the state of play in early 2024 and identify potential signposts for an upturn in the asset class.  

    APAC's Climate Transparency Journey — Uneven Progress

    2 mins read Quick Take | May 15, 2024 | Kenji Watanabe, Siyao He

    What’s behind the varying emissions-disclosure rates across the APAC region? We assessed the individual markets to see who’s making progress and also analyzed the numbers by market capitalization.

    How Making Agency Mortgage-Backed Securities Portable May Impact Housing and Mortgage-Backed Securities Investors

    Research Report | May 14, 2024 | David Zhang, Yihai Yu, Joy Zhang

    Mortgage portability would enable borrowers in the U.S. to move their mortgages from their current homes to new homes. How could it affect portfolios of mortgage-backed securities? Our new paper appeared in the Journal of Fixed Income. 

    Spirits of Change: Alcohol in a Dry World

    Podcast | May 10, 2024 | Michael Disabato, Cole Martin

    Alcoholic beverage companies are trying to navigate through a changing world, one where tastes are evolving, and resources are getting scarcer. In this episode, delve into the significant challenges and innovative strategies the alcoholic beverage industry is employing to combat this shift in drinking trends.

    Step Right Up for the Voluntary Carbon Markets!

    Podcast | May 9, 2024 | Juana Hernandez, Theresa Bodner

    The carbon markets allow companies to purchase credits to offset their carbon footprint until long-term reduction plans become a reality. We take a look at these markets and try to understand how they impact investors, companies and our future.

    Can Crowding Scores Quantify US Stocks’ Fragility?

    6 mins read Blog | May 8, 2024 | Donald Sze, Stuart Doole

    Instead of a predicted recession, U.S. equity markets have soared since 2022, and a few mega-cap technology stocks dominated the market. We analyze the most- and least-crowded market segments to help investors prudently monitor their portfolios. 

    Are Subscription Lines of Credit Still Worth the Cost?

    2 mins read Quick Take | May 8, 2024 | Patrick Warren

    Subscription lines of credit have become widespread across buyout, private-debt and real-estate funds, but elevated interest rates are prompting investors to reassess their sub lines’ value. How much has it cost funds to service this debt?

    Foundations of Dedicated China Allocations: Part 4

    Research Report | May 6, 2024 | Zhen Wei, Cheng Lyu

    Although Chinese equities generally performed poorly from 2021 through 2023, certain dedicated China funds earned double-digit annualized returns. We propose a three-layer framework to help demystify the drivers of excess returns in the China market. 

    Carbon Footprinting Demystified

    Research Report | May 1, 2024 | Carrie Wang, Guido Giese, Xinxin Wang

    Assessing the carbon footprint of a portfolio is the first step in addressing the investment implications of climate change. But in a complex and fast evolving landscape, which are the best metrics and underlying inputs to use?  

    Trends in Emerging-Market Sovereign Bonds

    Research Report | Apr 30, 2024 | Ray Wang, Afsaneh Mastouri

    Sovereign bonds from emerging markets constitute a substantial proportion of the global asset universe. We look at the MSCI Emerging Markets Sovereign Bond Index to assess issuance trends, credit quality and other characteristics of index constituents. 

    Private Assets in Focus: Senior Debt on Top; PE Distributions Up

    2 mins read Quick Take | Apr 30, 2024 | Keith Crouch

    Senior-debt funds led 2023 private-asset performance, followed by mezzanine debt. We summarize the leaders and the laggards from the Q4 2023 update of the Burgiss Manager Universe, and chart the trend in private-equity distributions.  

    Investment Trends in Focus: Quarterly Roundtable Q2 2024

    Podcast | Apr 25, 2024 | Luis O’Shea, Laura Nishikawa, Anil Rao, Ashley Lester

    Our panel discusses what’s happening in public equity markets, the importance of governance and of sustainable investing more broadly, as well as the growing world of private assets, including private credit and the ways in which these assets might come to resemble their public counterparts more than they do today.

    Factor and Sector Behavior Across Macro Regimes

    5 mins read Blog | Apr 24, 2024 | Ashish Lodh

    Over the last nearly 50 years, changes in interest rates have had a more pronounced impact on the performance of factor and sector indexes than the rate level itself. Insights from these findings may be helpful in realigning portfolios to a shifting macro view. 

    Bridging Greenhouse to Greenbacks: Renewables’ Returns in Private Funds

    5 mins read Blog | Apr 24, 2024 | Abdulla Zaid

    In recent years, there has been a notable shift in private investments in energy. Understanding these trends and the financial side of renewable investments may be key for investors looking to allocate private money to energy-transition opportunities. 

    AI is Diagnosing and Texas is Burning

    Podcast | Apr 19, 2024 | Namita Nair, Mathew Lee

    Everyone is talking about AI, but on today’s episode we focus on the technology’s potential to disrupt health care. Then, we switch things up to look at how wildfires are exacerbating physical, legal and financial risks for electric utilities in the U.S.

    Is Say-on-Climate Losing Steam?

    2 mins read Quick Take | Apr 17, 2024 | Harlan Tufford, Florian Sommer, Gül Demirtaş, David Muirhead

    As proxy season nears, investors looking at how companies in their portfolios are working toward establishing and meeting climate goals may find it useful to note trends around shareholder say-on-climate proposals. 

    Climate Glidepaths for Energy Portfolios

    6 mins read Blog | Apr 16, 2024 | Juan Sampieri, Afsaneh Mastouri

    Sustainable investing often necessitates reducing portfolio emissions. But adding emission-reduction targets requires a careful navigation of market complexities and risk considerations alongside sustainability objectives. Could using a climate glidepath help? 

    Deglobalization and Megatrends: Time to Check Your Diversification?

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

    A global equity portfolio may not be as broadly diversified as it appears. Understanding how deglobalization and megatrends are impacting regions, industries and asset classes can help in designing a portfolio with the desired diversification profile. 

    Pondering Peak Emissions in China

    Podcast | Apr 12, 2024 | Siyao He, Cody Dong

    Coal still makes up a big cut of China’s energy mix. But the country’s growth in renewables is undeniable. As climate targets are laid down and climate change accelerates, figuring out China’s emissions trajectory will be tricky. And that’s OK – we love a tricky discussion.

    Removing Old King Coal's Crown ... Slowly

    Podcast | Apr 11, 2024 | Manish Shakdwipee, Elchin Mammadov

    Abruptly shutting down all the coal-fired power plants may appeal to some, but there would likely be unintended consequences for investors, as well as plant employees and those who live where the plants are located. A managed coal phaseout with specific target dates and actions may create a level of certainty for all involved.

    Global Issuer Engagement on MSCI ESG Ratings Continued to Rise

    2 mins read Quick Take | Apr 11, 2024 | Emma Wu, Feifan Huang

    Corporate issuers around the globe and across the market spectrum are increasingly seeking information, offering feedback and sharing updates related to sustainability, governance and climate-related data. Where has interest been focused?  

    Talking Taxes This Week? Plan Now for 2024

    2 mins read Quick Take | Apr 9, 2024 | Joseph Wickremasinghe

    Tax-loss harvesting is one strategy individual investors can use to help reduce tax liability and improve after-tax return. It may result, however, in high turnover and tracking error, lowering return. Balancing these factors for each taxpayer is key. 

    Biodiversity Risks and Opportunities in Asia Pacific

    Research Report | Apr 8, 2024 | Jurgita Balaisyte, S.K. Kim, Kuldeep Yadav

    The Asia Pacific region is at the heart of the global biodiversity crisis. Using MSCI ESG Ratings, we assess APAC companies on their exposure to biodiversity risks. But these risks may also offer opportunities to address the impacts of biodiversity. 

    Long-Term Performance of MSCI ESG Ratings in APAC Equity Markets

    5 mins read Blog | Apr 8, 2024 | Manish Shakdwipee, Drashti Shah, Guido Giese

    Over the long term, companies with higher MSCI ESG Ratings have outperformed in the Asia Pacific equity markets. Among the three pillars, governance demonstrated the highest outperformance, followed by the social and environmental pillars. 

    Does Your Board Need a Climate Superstar?

    Podcast | Apr 5, 2024 | Florian Sommer

    For some investors, having a climate-savvy director on a company’s board may seem like a non-negotiable. But data from some of the world’s biggest greenhouse gas emitters shows that successful climate governance is complex and may require more than just pinning your hopes on a climate superstar.

    Markets in Focus: Regional Markets, Credit and Cash on the Move

    6 mins read Blog | Apr 2, 2024 | Anil Rao, Dinank Chitkara, Andy Sparks

    Investors contemplating putting their cash to work over the balance of 2024 may wish to consider the impacts of the changing equity-credit relationship and growing regional disparities as they revise their allocations. 

    Macro Scenarios in Focus: Are US Markets Priced for Perfection?

    8 mins read Blog | Apr 2, 2024 | Dora Pribeli, Will Baker, Thomas Verbraken

    Global forecasters have recently suggested that the world economy is headed for a soft landing. Our latest market stress test looks at how this and other, less benign scenarios could affect a multi-asset-class portfolio in the coming months. 

    Children are still in the Cocoa Field

    Podcast | Apr 2, 2024 | Michael Disabato, Cole Martin

    This week we provide an update to our March 2022 episode titled Children in the Cocoa field that explored the growing problem of child labor in cocoa harvesting. And the attempt by Nestlé to use money and enhanced mapping technology to combat its prevalence. It sounds bleak, but it was a great story about how technology is allowing for better transparency in our world's supply chain.

    Are Audit Firms Spread Too Thin?

    6 mins read Blog | Mar 28, 2024 | Jonathan Ponder, Ahasan Amin

    The auditing industry is facing several challenges, including fee concentration and a decline in practicing accountants. We assess the current state of play to identify potential areas of concern and the impact these could have on investors.

    Indian Firms Advance in Financially Pertinent Sustainability Risks

    4 mins read Blog | Mar 26, 2024 | Dinank Chitkara, Manish Shakdwipee

    Indian firms have made notable strides in managing their financially relevant sustainability risks over the last five years. Understanding their progress could offer valuable insights to investors in India’s equity market.    

    Wave of Property-Loan Maturities Amplified by Extensions

    2 mins read Quick Take | Mar 26, 2024 | Alexis Maltin

    Higher interest rates and a pricing slump have challenged the refinancing of commercial-property debt. We calculate the volume of U.S. loans likely extended from 2023 and chart the lenders behind the slate of maturities starting in 2024. 

    Investor Pressure May Help APAC Companies Minimize Asset-Stranding Risk

    7 mins read Blog | Mar 25, 2024 | Elchin Mammadov, Manish Shakdwipee

    A managed coal phaseout could help power generators reduce asset-stranding risk and help countries achieve their decarbonization targets. What might this mean for utilities companies and why might active engagement be the way forward for investors? 

    Unwrapping the Green Claims of Plastic Packaging

    Podcast | Mar 22, 2024 | Samuel Block

    Plastic is an inescapable reality of the modern world. But trading off its convenience and versatility for environmental and health impacts is getting harder. Companies that make or rely on plastic are being pushed to improve recyclability and reuse. And as tempting as it is to believe everything you read on a label, it looks like the road to a genuine circular economy is still going to be a little bumpy.

    Beyond the Name Game: Focus on Fundamentals

    5 mins read Blog | Mar 21, 2024 | Anil Rao, Thomas Verbraken

    Name recognition of highflying stocks, as well as their performance, can be brief. The enduring value of thematic and fundamental analysis is the ability to uncover the macroeconomic and business dynamics that influence long-term stock returns.  

    Are US Treasurys Sensing a Risk Equities Aren’t?

    2 mins read Quick Take | Mar 21, 2024 | Dinank Chitkara

    The wide gap in U.S. T-bill and equity volatility levels appears to reflect varying perceptions of risk. The historically low hedging premium implies a lower cost to insure against higher equity volatility, should that be the scenario that unfolds.

    In the Name of Climate: Private vs. Public Funds

    6 mins read Blog | Mar 19, 2024 | Abdulla Zaid, Rumi Mahmood

    In recent years, there has been a surge in climate-related names within both public and private funds, but their focus is often on different areas. We analyze the numbers to identify key trends and provide investors with greater clarity.

    The SEC Tests out the Climate

    Podcast | Mar 15, 2024 | Michael Disabato, Zohir Uddin, Mathew Lee

    The SEC’s climate disclosure rule is finally here. It’s been a journey, one akin to a film drama full of plot twists, cliff hangers and edge of the seat moments. So in honor of the drama, this week we do a film review of sorts on this wide reaching regulation - going into the plot, the actors involved, and how the industry is likely to be affected by it.

    Have Corporate Reforms in Japan Unlocked Shareholder Value?

    6 mins read Blog | Mar 14, 2024 | Naoya Nishimura, Moeko Porter

    Regulatory reform has been one of the forces boosting the Japanese equity market’s performance over the last two years — but capital efficiency and margins still disappoint. Improving these metrics may be key to further improvement in the market.  

    The Inevitable AI Episode

    Podcast | Mar 14, 2024 | Andrew DeMond, Peter Shepard

    Since ChatGPT's debut less than 18 months ago, artificial intelligence has dominated headlines, and excitement and apprehension now surround its entry into the world of finance and investment. But just what are the expectations and misconceptions?

    Long-Term Performance of MSCI ESG Ratings in European Equity Markets

    5 mins read Blog | Mar 11, 2024 | Guido Giese, Drashti Shah

    Based on a quintile analysis for MSCI ESG Ratings for the MSCI Europe Index, we found that companies in the highest quintile have consistently outperformed those in the lowest quintile since 2013, when these ratings were first introduced. 

    Returns for European Property Fell as Office Weakened

    2 mins read Quick Take | Mar 11, 2024 | Tom Leahy

    Returns for commercial real estate covered by the MSCI Europe Quarterly Property Index deteriorated at the end of 2023, dragged down by the office market, where capital values fell 13.9% for the year.

    What the SEC’s New Climate Disclosure Rules Could Mean for Companies and Investors

    6 mins read Blog | Mar 8, 2024 | Mathew Lee

    The Securities and Exchange Commission (SEC) have finally unveiled their plans for climate-related disclosures. The rules may create more transparency for investors and help narrow the disclosure gap between the U.S. and other developed markets.  

    Women on Boards and Beyond

    Podcast | Mar 8, 2024 | Linda-Eling Lee, Christina Milhomem, Gabriela de la Serna

    We have been reporting on board’s gender diversity since 2009, and while progress has undoubtedly been made, the road ahead is still long. Linda-Eling Lee from MSCI’s Sustainability Institute tells us why we started compiling this report in the first place, and how it has managed to remain relevant in 2024. Then, our colleague Christina Milhomem tells us what the numbers say- what has or hasn’t changed, which regulations are coming our way- and why investors should think of diversity as an indicator of management oversight.

    Not Every Bank Is at Risk from CRE Lending

    Research Report | Mar 7, 2024 | Jim Costello, Alexis Maltin

    U.S. commercial-property prices are falling, and many are fearful of the impact on the broader financial system. We identify the segment facing the sharpest price drops and examine the exposures of banks of all scale as well as other key sources of financing. 

    Going Where the Talent Is

    5 mins read Blog | Mar 7, 2024 | Christina Milhomem

    Having the right mix of skills, experience and perspectives at the top could make the difference between companies getting ahead or falling behind. In our analysis of diversity across boards, c-suites and executive teams, “diverse leadership” has begun to emerge. 

    Jim Costello Explains it All (About Commercial Real Estate)

    Podcast | Mar 7, 2024 | Jim Costello

    Jim Costello, one of our guests for last week’s episode on the current state of commercial real estate (link below), is one of the industry’s most sought-after speakers — and with good reason. In today’s bonus episode, we present host Adam Bass’s complete conversation with Jim.

    ESG and Climate In Focus: 2023 Index Performance Review

    6 mins read Blog | Mar 6, 2024 | Guillermo Cano, Xinxin Wang

    A bright spot in an often-tumultuous 2023 was the ability of the MSCI ESG and Climate Indexes to meet or exceed their stated objectives, which ranged from maximizing ESG score to reducing carbon emissions.  

    Micro-Cap Crowding and Liquidity Crunch in China Quant Funds

    2 mins read Quick Take | Mar 6, 2024 | Cheng Lyu, Zhen Wei

    Since early January, several forces, including leverage and crowded longs in small- and micro-cap stocks, have contributed to a mini liquidity crisis among some quantitative mutual and hedge funds in China.

    Unpacking COP28 Commitments to Renewable Energy and Energy Efficiency

    Research Report | Mar 4, 2024 | Kenji Watanabe, Anthony Chan, Kuldeep Yadav, Siyao He, Sylvain Vanston

    Scaling up renewable-energy and energy-efficiency solutions are key steps in driving the transition away from fossil fuels in energy systems. Our analysis of low-carbon patents, fuel mix and renewable-energy targets may help identify where the opportunities lie. 

    MSCI ESG Ratings in Global Equity Markets: A Long-Term Performance Review

    Research Report | Mar 1, 2024 | Guido Giese, Drashti Shah

     Controlling for sectors, regions and company size, we assessed the financial performance of MSCI ESG Ratings in global and developed markets and found that companies with higher ratings outperformed their lower-rated counterparts over the long term.

    Did you get the memo? There's more to commercial real estate than office space.

    Podcast | Feb 29, 2024 | Tom Leahy, Jim Costello

    When it comes to commercial real estate, much of the attention of investors and the financial press has focused on the state of the office sector, which has been hurting. And while real concerns exist, there are also potential opportunities across and within the various real-estate sectors.