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Padmakar Kulkarni

Padmakar Kulkarni

Executive Director, MSCI Research

Padmakar Kulkarni’s research focuses on the development of new MSCI factor and ESG indexes products, having worked extensively in the development of single- and multifactor indexes, as well as factor indexes integrated with ESG and climate considerations. He is both a CFA® and a CAIA charter-holder. Padmakar holds a bachelor’s degree in production engineering from the University of Mumbai and a postgraduate diploma in industrial management from the National Institute of Industrial Engineering.

Research and Insights

Articles by Padmakar Kulkarni

    Value and Growth Investing as ESG and Climate Friendly

    6 mins read Blog | Jul 28, 2022 | Guillermo Cano , Padmakar Kulkarni

    Many investors may be seeking to align their value- or growth-oriented portfolios with the consideration of ESG as well as the transition to a low-carbon economy. We detail several approaches for working toward these investment objectives.

    Building Climate-Aware Factor Portfolios

    4 mins read Blog | Aug 31, 2021 | Chirag Gosar , Padmakar Kulkarni

    Factor investing typically involves both security selection and alternative weighting based on security-level factor exposure. If such a strategy also needs to be climate-aware, what is the cost in terms of target-factor erosion?

    How can Factors be Combined?

    Report | Jun 4, 2018 | Abhishek Gupta , Padmakar Kulkarni , Stuart Doole

    Making allocations to individual factors typically requires strong investment beliefs, as factor returns have been cyclical in nature. When weighing the pros and cons of different multi-factor indexed approaches, institutional investors often evaluate both bottom-up or top-down options. We consider the attractions of both, using a bottom-up approach to build a multi-factor index from stocks that are favorably exposed to the value, size, quality and momentum factors, compared with an...

    The MSCI Factor ESG Target Indexes

    Report | Sep 28, 2017 | Padmakar Kulkarni , Mehdi Alighanbari , Stuart Doole

    Institutional investors are moving toward integrating ESG criteria into their portfolios and their factor allocations in particular. But they face key challenges in doing so: How can they enhance their strategies’ ESG profiles while achieving the desired exposure to their target factors? Our research shows this can be achieved by simultaneously incorporating ESG integration alongside factor exposure targeting in index construction. The MSCI Factor ESG target indexes’ “one-step” approach...

    Factor Investing and ESG Integration

    Report | Nov 30, 2016 | Dimitris Melas , Zoltán Nagy , Padmakar Kulkarni

    Integrating ESG criteria into equity portfolios raises important portfolio construction questions. For example, what is the impact of ESG on portfolio performance and characteristics? How does it alter the risk profile and the factor exposures of portfolios? How does it affect institutional investors’ ability to pursue their investment strategy?  Our results show that integrating ESG criteria into passive strategies generally improved risk-adjusted performance over the period 2007 to...

    The MSCI Diversified Multi-Factor Indexes

    Report | May 27, 2015 | Chin Ping Chia , Stuart Doole , Dimitris Melas , Padmakar Kulkarni

    Multi-factor indexes are important tools for institutional investors seeking diversified exposure to factors that have historically generated premia over long horizons. In this Research Spotlight, we examine the new MSCI Diversified Multi-Factor (DMF) Index family, which selects stocks with exposures to the value, momentum, quality and low size factors, while keeping risk at the level of the market.

    MSCI Diversified Multiple-factor Indexes

    Report | May 7, 2015 | Chin Ping Chia , Stuart Doole , Dimitris Melas , Padmakar Kulkarni

    Maximizing Factor Exposure While Controlling Volatility. May 2015 Multi-factor indexes are important tools for investors seeking diversified exposure to factors that have historically generated premia over long horizons.  In this Research Insight, we examine the new MSCI Diversified Multiple-Factor (DMF) Index family. These indexes combine four well-researched factors — value, momentum, size and quality — with a control mechanism designed to keep volatility close to the level of the...

    MSCI Factor Indexes in Perspective: Insights from 40 Years of Data

    Report | Sep 18, 2014 | Padmakar Kulkarni , Subramanian Aylur , Mehdi Alighanbari

    With Research Spotlight - MSCI Factor Indexes in Perspective:Insights from 40 Years of Data, we launch our new publication called the Research Spotlight. IEach paper in the series, we will focus on the key findings of a longer white paper, summarizing the research for a non-technical audience. While certain readers will be drawn to the longer publication for the full scope of the study, the Research Spotlight affords a quick and focused summary for those interested in a concise...

    Research Insight - Factor Indexes in Perspective: Insights from 40 Years of Data Part II: Supplementary Materials - September 2014

    Report | Sep 8, 2014 | Padmakar Kulkarni , Subramanian Aylur , Mehdi Alighanbari

    Until recently, MSCI had calculated 25 years of simulated history for its factor indexes. In this Research Insight, we extend the simulated history to 40 years, providing new insights into the behavior of factor indexes over various time periods. We look at factor index behavior over various time frames; the changes in the correlation between factor returns over this period; historical variations in valuation of factor indexes and their exposure to GICS sectors. We also use IndexMetrics,...

    Research Insight - Factor Indexes in Perspective: Insights from 40 Years of Data Part I: Study - September 2014

    Report | Sep 8, 2014 | Padmakar Kulkarni , Subramanian Aylur , Mehdi Alighanbari

    Until recently, MSCI had calculated 25 years of simulated history for its factor indexes. In this Research Insight, we extend the simulated history to 40 years, providing new insights into the behavior of factor indexes over various time periods. We look at factor index behavior over various time frames; the changes in the correlation between factor returns over this period; historical variations in valuation of factor indexes and their exposure to GICS sectors. We also use IndexMetrics,...

    Capturing the Value Premium

    Report | Apr 20, 2011 | Madhusudan Subramanian , MSCI Index Research , Padmakar Kulkarni , Dimitris Melas , Roman Kouzmenko

    MSCI Value Weighted Indices are systematic indices that aim to reflect the value premium by employing an alternative weighting scheme that tilts the index towards stocks with lower valuation ratios. In this paper, we review the theoretical aspects of value weighted indices and through empirical studies we discuss the important facets of index construction that underpin the design of MSCI Value Weighted Indices. They are based on an objective and transparent methodology by which all the...