OneTrust Cookie Consent

Navigation

  • Skip to Content
  • Client Log In
  • Investor relations
  • Sustainability Institute
  • Subscribe
  • Contact us
  • Careers
  • Language
  • Go back to Main Menu
  • Client Log In
  • MSCI ONE
  • MSCI Client Support Site
  • Barra PortfolioManager
  • BarraOne
  • MSCI ESG Manager
  • MSCI ESG Direct
  • Global Index Lens
  • MSCI Real Assets Analytics Portal
  • RiskManager 3
  • CreditManager
  • RiskManager 4
  • Index Monitor
  • MSCI Datscha
  • MSCI Real Capital Analytics
  • Go back to Main Menu
  • Language
  • English
  • Chinese
Navigation

Navigation Menu

  • Our Clients
    • Go back to Main Menu
    • Our Clients
    • Asset Managers
      • Featured

        Insights on MSCI One
    • Asset Owners
      • Featured

        Institutional Client Designed Indexes (iCDIs)
    • Banks
      • Featured

        Total Portfolio Footprinting
    • Corporates
      • Featured

        ESG Trends to Watch
    • Hedge Funds
      • Featured

        Factor Models
    • Insurance Companies
      • Featured

        Total Portfolio Footprinting
    • Wealth Managers
      • Featured

        Visualizing Investment Data
  • Our Solutions
    • Go back to Main Menu
    • Our Solutions
    • Analytics
      • Go back to Our Solutions
      • Analytics
      • Analytics Overview
      • Crowding Solutions
      • FactorLab
      • Fixed Income Analytics
      • Managed Solutions
      • Multi-asset Class Factor Models
      • Portfolio Management
      • Quantitative Investment Solutions
      • Regulatory Solutions
      • Risk Insights
    • Climate Investing
      • Go back to Our Solutions
      • Climate Investing
      • Climate Investing Overview
      • Featured

        Implied Temperature Rise
      • Featured

        Net-Zero Tracker
      • Biodiversity
      • Climate Indexes
      • Climate Lab Enterprise
      • Real Estate Climate Solutions
    • ESG Investing
      • Go back to Our Solutions
      • ESG Investing
      • ESG Investing Overview
      • Featured

        Trends 2023
      • ESG Fund Ratings and Climate Search Tool
        • Featured

          ESG and Climate Funds in Focus
      • ESG Indexes
        • Featured

          Role of Capital in the Net-Zero Revolution
      • ESG Ratings
        • Featured

          What is ESG
      • Impact Solutions
        • Featured

          Role of Capital in the Net-Zero Revolution
      • Sustainability Reporting Services
      • Sustainable Finance Solutions
        • Featured

          Role of Capital in the Net-Zero Revolution
    • Factor Investing
      • Go back to Our Solutions
      • Factor Investing
      • Factor Investing Overview
      • Featured

        MSCI Japan Equity Factor Model
      • Equity Factor Models
      • MSCI FaCS
      • Factor Indexes
    • Indexes
      • Go back to Our Solutions
      • Indexes
      • Indexes Overview
      • Featured

        Index Education
      • Featured

        MSCI Climate Action Corporate Bond Indexes
      • Client-Designed
      • Climate
      • Direct Indexing
      • ESG
      • Factor
      • Fixed Income
      • Market Cap
      • Private Real Assets
      • Thematic
        • Featured

          Thematic Exposure Standard
      • Resources
        • Go back to Indexes
        • Resources
        • Resources Overview
        • Featured

          MSCI Indexes Underlying Exchange Traded Products
        • Communications
        • Education
        • Equity Factsheets
        • Derivatives
        • Methodology
        • Performance
        • Regulation
        • Tools
    • Real Assets
      • Go back to Our Solutions
      • Real Assets
      • Real Assets Overview
      • Featured

        Real Estate Market Size
      • INCANS
      • Index Intel
      • Portfolio Services
      • Property Intel
      • Private Real Assets Indexes
      • Real Capital Analytics
  • Research & Insights
    • Go back to Main Menu
    • Research & Insights
    • Featured

      In Focus
    • Research & Insights
      • Go back to Research & Insights
      • Research & Insights
      • Research & Insights Overview
      • Climate
      • ESG
      • Equities
      • Factor Investing
      • Fixed Income
      • Multi-Asset Class
      • Real Estate
    • Events
      • Go back to Research & Insights
      • Events
      • Events Overview
      • Featured

        Capital for Climate Action Conference
      • On Demand
  • Technology
    • Go back to Main Menu
    • Technology
    • Data Explorer
    • Developer Community
    • Technology and Data
  • Who We Are
    • Go back to Main Menu
    • Who We Are
    • About Us
      • Featured

        2022 Annual Report
    • Corporate Responsibility
      • Go back to Who We Are
      • Corporate Responsibility
      • Corporate Responsibility Overview
      • Enabling Sustainable Investing
      • Environmental Sustainability
      • Governance Practices
      • Social Practices
      • Sustainability Reports and Policies
    • Diversity, Equity and Inclusion
    • Media Room
    • Our Leadership
      • Featured

        Henry A. Fernandez
    • Recognition
  • Client Log In
  • Investor relations
  • Sustainability Institute
  • Subscribe
  • Contact us
  • Careers
  • Language
  • Go back to Main Menu
  • Client Log In
  • MSCI ONE
  • MSCI Client Support Site
  • Barra PortfolioManager
  • BarraOne
  • MSCI ESG Manager
  • MSCI ESG Direct
  • Global Index Lens
  • MSCI Real Assets Analytics Portal
  • RiskManager 3
  • CreditManager
  • RiskManager 4
  • Index Monitor
  • MSCI Datscha
  • MSCI Real Capital Analytics
  • Go back to Main Menu
  • Language
  • English
  • Chinese

Main Search

Popular searches:
ACWI Research ESG Factor Investment Insights Gallery Asset Owners
Might interest you:
Equity Factors: Investor Views and Research Insights

Social Sharing

Extended Viewer

Equity Factors: Investor Views and Research Insights

Jun 16, 2023

We surveyed global institutional investors and wealth managers to gain insights into investors’ current thinking regarding equity factors and their evolving role in asset allocation, and to learn how investors believe traditional factor strategies should evolve to better serve the increasingly complex investment landscape. 

The resulting paper details five key insights from the survey, as well as from recent research:

  • Investor faith in equity factors increased. Despite recent lackluster performance of some factors, investors placed style-factor allocations, ahead of stock selection, sector or country-based allocations in their ability to generate alpha.
  • Many have shifted to value and quality. Some investors believe that the growth to value rotation that started towards the end of 2020 has not fully matured while some have a positive outlook on the quality factor.
  • Factors are seen as key elements of active performance. Both asset managers and asset allocators are increasingly reliant on factor performance attribution to decompose the risk and return of portfolios.
  • Investors don’t view factors and factor strategies as static. Investors believe that factor definitions should evolve through time and new factors may be discovered from alternative datasets or using advanced techniques, such as machine learning.
  • Different investment characteristics have converged. Investors are focused on the synthesis between factor investing and different investment characteristics, including ESG factors and megatrends driving transformational changes in the broader economy.


Download Report

Research authors

  • Abhishek Gupta, Executive Director, MSCI Research

Related content

Style Bets, Not Stock Picks, Drove Returns in 2022

Stock selection is a key element of an active manager’s investment process, demonstrating manager skill, but the impact of common factor exposures can dominate those decisions.

Read more

Anatomy of Active Portfolios

In constructing portfolios, asset managers expose the portfolio to factor tilts that greatly influence fund performance.

Learn more

Innovation Investing and Equity Allocations

An expanding investor appetite for innovation has led to the creation of investment vehicles that focus on both innovation-driven themes and companies through a variety of approaches.

Explore more
msci logo
  • Terms of Use
  • Legal
  • Modern Slavery Statement
  • Privacy notice
  • Index regulation
  • Locations
  • Cookies
  • Use of ISO standards
  • Site map
Subscribe Contact us
© 2023 MSCI Inc. All rights reserved

UtmAnalytics