Hero - Portfolio management 2023
Portfolio Management
Intro - Portfolio management 2023
In today’s competitive marketplace, differentiation can be essential for portfolio managers to attract and retain assets. It is becoming increasingly challenging for portfolio managers to create differentiation given the macroeconomic conditions and changing market trends.
The success of a manager may be anchored in achieving three objectives:
- Designing the best strategy aligned with investment values and objectives
- Delivering superior performance
- Communicating strategy, performance and value add in a very transparent and concise manner
MSCI has been at the forefront of innovation, offering decision-support tools along with rigorous research, transparent methods, and a global perspective to help our clients solve myriad investment challenges. Asset and wealth managers can use our models and optimization and performance attribution tools to help them understand the drivers of risk and return, construct optimized and personalized portfolios in line with their client’s goals and communicate their value add and performance in a transparent manner.
Asset owners can use our research, data, benchmarks, and multi-asset class risk management tools to enable them to measure the manager’s performance and help ensure that the managers they hire are delivering appropriate risk-adjusted returns aligned with their business objectives and financial goals.
Applications
Barra® Portfolio Manager - Barra Portfolio Manager is a cloud-based, interactive platform with a flexible user interface that enables our clients to share strategies, analytics and reports across their organizations. Barra Portfolio Manager delivers MSCI’s proprietary content as well as third-party data. Read more
Barra® Aegis Software Platform - A locally-installed application specifically designed to help clients actively manage portfolios, the platform provides Aegis Portfolio Manager, Aegis Performance Analyst, Aegis Optimizer and automation tools for each model. Read more
Performance Attribution
We offer a suite of performance attribution models with which to analyze the sources of portfolio performance on an absolute or relative basis. Our tools are multi-asset class and multi-currency, and we collect market and asset data daily. A streamlined workflow makes attribution reporting intuitive and efficient.
| Model | How it's used |
|---|---|
|
Brinson-Fachler Attribution |
To evaluate top-down sector allocation strategies in equity or balanced portfolios |
|
Asset Selection Attribution |
To evaluate bottom-up stock picking strategies in equity or balanced portfolios |
|
Barra Equity Factor Attribution |
To identify granular sources of return in equity portfolios |
|
Fixed Income Attribution |
To identify sources of active return due to yield curve movements and credit/spread bets in fixed income portfolios |
Optimization
Every investor has financial goals, investability preferences and constraints, and the objective to minimize risk and maximize returns. Optimization tools help investment professionals to construct portfolios considering these criteria and maximize the risk-return trade-off. In contrast to other portfolio construction techniques, optimization provides a unified framework that considers a user’s goals, preferences, concerns, and requirements. MSCI provides the following tools and services for optimization:
MSCI Optimization Service API - The MSCI Optimization Service API enables users to build complex and layered optimizer and rule-based investment strategies. Portfolio managers can use the API to easily integrate tax optimization into their portfolio management workflow to provide better after-tax investment outcomes aligned with their client’s values and objectives. MSCI Optimization Service is offered as part of MSCI Quantitative Investment Solutions (QIS).
MSCI Open Optimizer - The MSCI Open Optimizer is an open, flexible optimization library, specifically designed to help solve portfolio management challenges. Its algorithms utilize multiple optimization engines from MSCI and third parties to create index tracking portfolios, manage asset allocation, implement tax-aware strategies, and other objectives of portfolio managers.
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