MSCI in Practice: Multi-Period Stress Testing: A New Lens for Portfolio and Risk Management

Multi-Period Stress Testing (MPST) is a new MSCI innovation that enables investors to understand the impact of hypothetical scenarios that could take over a decade to play out. MPST’s ability to compute shocks over multiple periods provides more realistic long-horizon scenarios for risk management and portfolio construction. 

During this webinar we demonstrated how different portfolio allocation strategies perform under hypothetical multi-period inflation scenarios. 

Agenda topics

• Review the foundation for Multi-Period Stress Testing
• Use MPST scenarios to analyze the impact of reflation, disinflation and stagflation on different allocation strategies
• Understand the trade-off between short-term drawdown and long-horizon return

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