Showing 21 - 30 of 386 entries
Research PaperFund ESG Transparency: Quarterly Report 2021
Research PaperBridging the gap: Adding factors to indexed and active allocations
Asset owners face a challenge in determining how the factor allocation fits into the overall equity program, in particular how the factor allocation relates to the existing roster of active managers. This paper uses a risk budgeting framework to investigate how active mandates and factor allocations can be combined. We address three key questions: 1) how does the level of active risk in active management affect the factor allocation decision, 2) what share of the portfolio can be deployed to...
Support Site VideoRising Interest Rates - Funding Consequences for Pensions
Research PaperKEEP IT BROAD: AN APPROACH TO ESG STRATEGIC TILTING
HOW CAN UNIVERSAL OWNERS INTEGRATE ESG PRINCIPLES WHILE MAINTAINING A BROAD AND DIVERSIFIED INVESTMENT UNIVERSE? Institutional investors are increasingly looking for ways to integrate ESG considerations into their investment decisions. By doing so, they may aim to mitigate long-term risks, generate higher risk-adjusted performance and/or align investments with broader societal objectives. As ESG investment guidelines become more commonplace among asset owners, and as many continue to build...
MSCI BlogHow Funds Are Positioned for a Low-Carbon Future
As the world moves toward a low-carbon future, companies of many stripes are adopting renewable and clean-energy technologies. That, of course, has implications for stocks and the portfolios that hold them. How can asset owners understand the carbon-transition risks in their portfolios?
Research PaperBeyond Divestment: Using Low Carbon Indexes
Winner of the 2015 IRRC Institute Investor Research Award for best practitioner paper. Approaches based on divesting certain sectors effectively can help asset owners communicate their concerns about the risks of climate change to stakeholders. However, they ignore short-term benchmark risk. Further, a focus on divesting reserves disregards fixed assets that are at risk of losing value because they depend on burning fossil fuel reserves. This paper provides a framework for evaluating ways to...
Research PaperThe road toward a seamless global real estate portfolio
Real estate investors can analyze performance of direct real estate in detail. However, listed real estate, which includes public REITs, rarely offers detailed data, making it challenging to monitor a portfolio consisting of both private and public assets. Two developments are focusing issue: 1) real estate will constitute a new GICS® sector as of August 31 and 2) many asset owners seek to globalize their real estate portfolios: adding international listed securities is a simple and...
Research PaperIntroducing the Multi-Portfolio Attribution Model in BarraOne
This Product Insight introduces the Multi-Portfolio Attribution model in BarraOne. For Asset Owners investing in pension plans, Asset Managers investing in asset allocation portfolios and fund-of-fund managers who all invest across multiple asset classes, strategies and managers, the model captures the following results in a single analysis: the performance of both the Strategic Asset Allocation (SAA) and the investment portfolio; how much value was added by tactically deviating from the...
Research PaperFoundations of ESG Investing – Part 3: Integrating ESG into Indexed Institutional Portfolios
According to recent surveys, asset owners’ have shifted their main focus to ESG’s financial benefits, as opposed to social benefits. In the third part of this paper, we discuss how ESG can be integrated into indexed allocations using MSCI ESG Ratings, which provided better risk-adjusted returns from August 2010 to December 2017 than the MSCI ACWI Index. We used existing best-in-class selection-based index methodologies (the MSCI ESG Leaders Index) for the creation of hypothetical global and...
Research PaperResearch Insight - Women on Boards: Global Trends in Gender Diversity
Many institutional investors are increasingly focused on the gender composition of company boards. Our latest research shows that companies in the MSCI World Index with strong female leadership generated a Return on Equity of 10.1% per year versus 7.4% for those without, as of September 9, 2015, though we could not establish causality. We found that companies lacking board diversity suffered more governance-related controversies than average. Global asset owners are promoting a 30% global...