Factor Investing - Empowering investors to achieve better outcomes

Factors are often key drivers of portfolio returns – Factor Investing is now mainstream and being embedded throughout the investment process.

MSCI helps clients build, implement and measure factor based strategies through consistent and transparent factor frameworks.

  • MSCI has been a leader in the application of factors for 40+ years
  • MSCI, beginning with Barra, invented a common language to explain risk and return through the lens of factors
    • “By 1976 Barra (now part of MSCI) had created sophisticated models that predicted stock returns based on many different risk factors” – Bionic Beta wins the 1970’s (Forbes, Feb 2014)
       

Explore the MSCI Global Factor Framework interactive below which provides transparency in to our Global Equity Factor Model – Long Term Horizon (GEMLT):


 

Our Research differentiates MSCI from the rest

One of MSCI’s key competitive advantages is our research. We employ one of the largest research teams in our industry – which contains extensive academic credentials with broad financial and investment industry experience. We are dedicated to building the world’s finest index, portfolio construction and risk management tools – working on both developing new factor models and methodologies and enhancing existing ones.

MSCI‘s rich factor hierarchy is built from the ground-up from aggregated fundamental and technical data.  This is based on extensive research to identify common drivers of risk and return and back tested for relevance across markets and investment strategies. Our in-house team of more than 150 researchers blends academic research with practical experience and is continuously innovating to introduce new factors into risk models.